Income distribution determinants and public spending efficiency
AbstractIn this paper we examine the impact of public spending, education, and institutions on income distribution in advanced economies. We also assess the efficiency of public spending in redistributing income by using a DEA (Data Envelopment Analysis) nonparametric approach. We find that public policies significantly affect income distribution, notably via social spending, and indirectly via high quality education/human capital and via sound economic institutions. Moreover, for our set of OECD countries, and within a two-step approach, several so-called non-discretionary factors help explaining public social spending inefficiencies. JEL Classification: C14, H40, H50
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Central Bank in its series Working Paper Series with number 0861.
Date of creation: Jan 2008
Date of revision:
Contact details of provider:
Postal: Postfach 16 03 19, Frankfurt am Main, Germany
Phone: +49 69 1344 0
Fax: +49 69 1344 6000
Web page: http://www.ecb.europa.eu/home/html/index.en.html
More information through EDIRC
Postal: Press and Information Division, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany
Other versions of this item:
- António Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Income distribution determinants and public spending efficiency," Journal of Economic Inequality, Springer, vol. 8(3), pages 367-389, September.
- António Afonso & Ludger Schknecht & Vito Tanzi, 2008. "Income Distribution Determinants and Public Spending Efficiency," Working Papers Department of Economics 2008/05, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- H40 - Public Economics - - Publicly Provided Goods - - - General
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-09 (All new papers)
- NEP-EDU-2008-02-09 (Education)
- NEP-EFF-2008-02-09 (Efficiency & Productivity)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gupta, Sanjeev & Verhoeven, Marijn, 2001. "The efficiency of government expenditure: experiences from Africa," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 433-467, May.
- Atkinson, A-B, 1996.
"Bringing Income Distribution in from the Cold,"
117, Economics Group, Nuffield College, University of Oxford.
- Afonso, Antonio & St. Aubyn, Miguel, 2006.
"Cross-country efficiency of secondary education provision: A semi-parametric analysis with non-discretionary inputs,"
Elsevier, vol. 23(3), pages 476-491, May.
- Afonso, António & St. Aubyn, Miguel, 2005. "Cross-country efficiency of secondary education provision: a semi-parametric analysis with non-discretionary inputs," Working Paper Series 0494, European Central Bank.
- António Afonso & Miguel St. Aubyn, 2005. "Cross-country Efficiency of Secondary Education Provision: a Semi-parametric Analysis with Nondiscretionary Inputs," Working Papers Department of Economics 2005/05, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- A. B. Atkinson & A. Brandolini, 2009. "On data: a case study of the evolution of income inequality across time and across countries," Cambridge Journal of Economics, Oxford University Press, vol. 33(3), pages 381-404, May.
- Aleš Bulíø & Anne-Marie Gulde, 2000.
"Inflation and Income Distribution,"
Czech Journal of Economics and Finance (Finance a uver),
Charles University Prague, Faculty of Social Sciences, vol. 50(4), pages 207-223, April.
- Amparo Castelló-Climent, 2010. "Inequality and growth in advanced economies: an empirical investigation," Journal of Economic Inequality, Springer, vol. 8(3), pages 293-321, September.
- Hongyi Li & Danyang Xie & Heng-fu Zou, 2002.
"Dynamics of Income Distribution,"
GE, Growth, Math methods
- Ruggiero, John, 2004. "Performance evaluation when non-discretionary factors correlate with technical efficiency," European Journal of Operational Research, Elsevier, vol. 159(1), pages 250-257, November.
- António Afonso & Ludger Schuknecht & Vito Tanzi, 2006.
"Public Sector Efficiency: Evidence for New EU Member States and Emerging Markets,"
Working Papers Department of Economics
2006/01, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Antonio Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Public sector efficiency: evidence for new EU member states and emerging markets," Applied Economics, Taylor & Francis Journals, vol. 42(17), pages 2147-2164.
- Afonso, António & Schuknecht, Ludger & Tanzi, Vito, 2006. "Public sector efficiency: evidence for new EU member states and emerging markets," Working Paper Series 0581, European Central Bank.
- Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
- De Borger, Bruno & Kerstens, Kristiaan, 1996. "Cost efficiency of Belgian local governments: A comparative analysis of FDH, DEA, and econometric approaches," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 145-170, April.
- Isabelle Joumard & Per Mathis Kongsrud & Young-Sook Nam & Robert W.R. Price, 2004. "Enhancing the Effectiveness of Public Spending: Experience in OECD Countries," OECD Economics Department Working Papers 380, OECD Publishing.
- António Afonso & Miguel St. Aubyn, 2005. "Non-parametric approaches to education and health efficiency in OECD countries," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 227-246, November.
- Tanzi,Vito & Schuknecht,Ludger, 2000.
"Public Spending in the 20th Century,"
Cambridge University Press, number 9780521664103, October.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- António Afonso & Miguel St. Aubyn, 2006. "Relative Efficiency of Health Provision: a DEA Approach with Non-discretionary Inputs," Working Papers Department of Economics 2006/33, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Afonso, António & Schuknecht, Ludger & Tanzi, Vito, 2003.
"Public sector efficiency: an international comparison,"
Working Paper Series
0242, European Central Bank.
- António Afonso & Ludger Schuknecht & Vito Tanzi, 2005. "Public sector efficiency: An international comparison," Public Choice, Springer, vol. 123(3), pages 321-347, June.
- António Afonso & Vítor Gaspar, 2007. "Dupuit, Pigou and cost of inefficiency in public services provision," Public Choice, Springer, vol. 132(3), pages 485-502, September.
- Fogel, Robert William, 2000. "The Fourth Great Awakening and the Future of Egalitarianism," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226256627, June.
- Dyson, R. G. & Allen, R. & Camanho, A. S. & Podinovski, V. V. & Sarrico, C. S. & Shale, E. A., 2001. "Pitfalls and protocols in DEA," European Journal of Operational Research, Elsevier, vol. 132(2), pages 245-259, July.
- Fakin, Barbara & de Crombrugghe, Alain, 1997. "Field adjustments in transition economies : social transfers and the efficiency of public spending - a comparison with OECD countries," Policy Research Working Paper Series 1803, The World Bank.
- Afonso, António & Jalles, João Tovar, 2011.
"Economic performance and government size,"
Working Paper Series
1399, European Central Bank.
- Leonel Muinelo-Gallo & Oriol Roca-Sagalés, 2012.
"Joint determinants of fiscal policy, income inequality and economic growth,"
Documentos de Trabajo basados en MonografÃas (students working papers)
12-04, Instituto de Economía - IECON.
- Muinelo-Gallo, Leonel & Roca-Sagalés, Oriol, 2013. "Joint determinants of fiscal policy, income inequality and economic growth," Economic Modelling, Elsevier, vol. 30(C), pages 814-824.
- Cecilia García-Peñalosa, 2010. "Income distribution, economic growth and European integration," Journal of Economic Inequality, Springer, vol. 8(3), pages 277-292, September.
- Adnan Efendić & Naida Trkic-Izmirlija, 2013. "Effects of the global economic crisis and public spending on income distribution in Bosnia and Herzegovina," wiiw Balkan Observatory Working Papers 108, The Vienna Institute for International Economic Studies, wiiw.
- Min, Hokey & Lambert, Thomas, 2013. "An Exploratory Evaluation of State Road Provision to Commuters and Shippers using Data Envelopment Analysis and Tobit Regression," MPRA Paper 47196, University Library of Munich, Germany.
- Diana Mihaiu, 2010. "Study Regarding The Efficiency Of Public Spending On Education At Eu Level Through Benchmarking," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 5(3), pages 201-214, December.
- Miguel Viegas & Ana Paula Ribeiro, 2011. "Welfare-improving Government Behaviour and Inequality - Inspection Using a Heterogeneous-agent Model," CEF.UP Working Papers 1103, Universidade do Porto, Faculdade de Economia do Porto.
- Aleksander Aristovnik, 2013. "Relative Efficiency of Education Expenditures in Eastern Europe: A Non-parametric Approach," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(3), pages 4, June.
- Cosmin Eugen ENACHE, 2012. "The efficiency of expenditure-related redistributive policies in the European countries," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 5(18), pages 380-394.
- Emanuele, Canegrati, 2008. "Analysis of Intergenerational Inequality: the Role of Public Expenditure and Taxation," MPRA Paper 10926, University Library of Munich, Germany.
- Viegas, Miguel & Ribeiro, Ana Paula, 2013. "Welfare-improving government behavior and inequality in a heterogeneous agents model," Journal of Macroeconomics, Elsevier, vol. 37(C), pages 146-160.
- Sergio Clavijo, 2011. "Estructura fiscal de Colombia y ajustes requeridos (2010-2020)," INFORMES DE INVESTIGACIÃN 009604, FEDESARROLLO.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Official Publications).
If references are entirely missing, you can add them using this form.