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Exploring Public Social Expenditure Trends in the Globalization Era

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  • Elina De Simone
  • Giuseppe Lucio Gaeta
  • Salvatore Ercolano

Abstract

Triggered by the phenomenon of globalisation, during recent years there has been a process of State policy rationalisation in the social expenditure domain; hence the debate over the present role and dimension of welfare state has intensified. Following on the extensive multidisciplinary literature on this issue, the purpose of this paper is two-fold 1) to apply a traditional analysis of convergence (sigma and beta convergence) in public social expenditures and 2) to analyse public social expenditure allocation expressed as a % of GDP and derive a possible classification of the countries by means of a multivariate approach. Our results, revealing that some convergence in the expenditure domain occurred for certain Southern and Northern European countries, can be interpreted as a further contribution to the literature on contemporary public policy evaluation in the welfare domain.

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Bibliographic Info

Article provided by European Research Studies Journal in its journal European Research Studies Journal.

Volume (Year): XV (2012)
Issue (Month): 1 ()
Pages: 23-42

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Handle: RePEc:ers:journl:v:xv:y:2012:i:1:p:23-42

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Related research

Keywords: Policy Making; Public Policy Expenditures; Principal Component Analysis; Cluster Analysis;

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  1. Axel Dreher & Jan-Egbert Sturm & Heinrich W. Ursprung, 2006. "The impact of globalization on the composition of government expenditures: Evidence from panel data," KOF Working papers 06-141, KOF Swiss Economic Institute, ETH Zurich.
  2. Keen, Michael & Marchand, Maurice, 1997. "Fiscal competition and the pattern of public spending," Journal of Public Economics, Elsevier, Elsevier, vol. 66(1), pages 33-53, October.
  3. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 98(5), pages S103-26, October.
  4. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, American Economic Association, vol. 76(5), pages 1072-85, December.
  5. Dowrick, Steve & Nguyen, Duc-Tho, 1989. "OECD Comparative Economic Growth 1950-85: Catch-Up and Convergence," American Economic Review, American Economic Association, American Economic Association, vol. 79(5), pages 1010-30, December.
  6. Vicente Navarro & John Schmitt & Javier Astudillo, 2004. "Is globalisation undermining the welfare state?," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 28(1), pages 133-152, January.
  7. Jesus Ferreiro & M. Teresa Garcia-Del-Valle & Carmen Gomez, 2009. "Is the composition of public expenditures converging in EMU countries?," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 31(3), pages 459-484, April.
  8. Ismael Sanz & Francisco J. Vel·zquez, 2004. "The Evolution and Convergence of the Government Expenditure Composition in the OECD Countries," Public Choice, Springer, Springer, vol. 119(1_2), pages 61-72, 04.
  9. Jesús Ferreiro & M. Teresa García-del-Valle & Carmen Gómez, 2010. "Social preferences and fiscal policies: an analysis of the composition of public expenditures in the European Union," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 32(3), pages 347-370, April.
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