IDEAS home Printed from https://ideas.repec.org/p/lis/liswps/786.html
   My bibliography  Save this paper

Assessing the Social Welfare Effects of Government Transfer Programs: Some International Comparisons

Author

Listed:
  • Nanak Kakwani
  • Xiaobing Wang
  • Jing Xu
  • Ximing Yue

Abstract

This paper offers a new way of assessing government cash transfers using a social welfare function framework. It demonstrates how one can use soci al welfare functions to measure the efficiency of such program s without requir ing the specif ication of a poverty line or particular poverty measures . The paper introduces three alternative principles of targeting, which provide a basis for measuring program efficiency. By applying the methodology developed in this paper , we compare the targeting efficiencies of 44 countries , which include both middle and high income countries.

Suggested Citation

  • Nanak Kakwani & Xiaobing Wang & Jing Xu & Ximing Yue, 2020. "Assessing the Social Welfare Effects of Government Transfer Programs: Some International Comparisons," LIS Working papers 786, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:786
    as

    Download full text from publisher

    File URL: http://www.lisdatacenter.org/wps/liswps/786.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rema Hanna & Benjamin A. Olken, 2018. "Universal Basic Incomes versus Targeted Transfers: Anti-Poverty Programs in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 32(4), pages 201-226, Fall.
    2. Claudia Gerber & Alexander Klemm & Li Liu & Victor Mylonas, 2020. "Income Tax Progressivity: Trends and Implications," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(2), pages 365-386, April.
    3. Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
    4. Kakwani, Nanak & Li, Shi & Wang, Xiaobing & Zhu, Mengbing, 2019. "Evaluating the effectiveness of the rural minimum living standard guarantee (Dibao) program in China," China Economic Review, Elsevier, vol. 53(C), pages 1-14.
    5. Nanak Kakwani & Hyun Hwa Son, 2016. "Social Welfare Functions and Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-58325-3.
    6. Amartya Sen, 1976. "Real National Income," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(1), pages 19-39.
    7. Robert Inklaar & D. S. Prasada Rao, 2017. "Cross-Country Income Levels over Time: Did the Developing World Suddenly Become Much Richer?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(1), pages 265-290, January.
    8. R. A. Musgrave & Tun Thin, 1948. "Income Tax Progression, 1929-48," Journal of Political Economy, University of Chicago Press, vol. 56, pages 498-498.
    9. Kakwani, Nanak & Lambert, Peter J., 1998. "On measuring inequity in taxation: a new approach," European Journal of Political Economy, Elsevier, vol. 14(2), pages 369-380, May.
    10. Çinar Baymul & Kunal Sen, 2019. "Kuznets Revisited: What Do We Know about the Relationship between Structural Transformation and Inequality?," Asian Development Review, MIT Press, vol. 36(1), pages 136-167, March.
    11. Nanak Kakwani & Shi Li & Xiaobing Wang & Shanshan Wu, 2019. "Social Tensions in a Growing China," Manchester School, University of Manchester, vol. 87(2), pages 228-258, March.
    12. Sen, Amartya, 1979. "The Welfare Basis of Real Income Comparisons: A Survey," Journal of Economic Literature, American Economic Association, vol. 17(1), pages 1-45, March.
    13. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    14. Sen, Amartya, 1974. "Informational bases of alternative welfare approaches : Aggregation and income distribution," Journal of Public Economics, Elsevier, vol. 3(4), pages 387-403, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Piotr Paradowski & Joanna Wolszczak-Derlacz & Eva Sierminska, 2020. "Inequality, Poverty and Child Benefits: Evidence from a Natural Experiment," LIS Working papers 799, LIS Cross-National Data Center in Luxembourg.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nanak Kakwani & Xiaobing Wang & Jing Xu & Ximing Yue, 2021. "Assessing the Social Welfare Effects of Government Transfer Programs: Some International Comparisons☆," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(4), pages 1005-1028, December.
    2. Yangyang Shen & Shi Li & Xiaobing Wang, 2021. "Impacts of Two Tax Reforms on Inequality and Welfare in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(3), pages 104-134, May.
    3. Junyi Zhu, 2014. "Bracket Creep Revisited - with and without r > g: Evidence from Germany," Journal of Income Distribution, Ad libros publications inc., vol. 23(3), pages 106-158, November.
    4. Chakravarty, Satya R. & Sarkar, Palash, 2022. "A synthesis of local and effective tax progressivity measurement," MPRA Paper 115180, University Library of Munich, Germany.
    5. Amartya K. Sen, 1997. "From Income Inequality to Economic Inequality," Southern Economic Journal, John Wiley & Sons, vol. 64(2), pages 384-401, October.
    6. Francois, Joseph & Rojas-Romagosa, Hugo, 2011. "Household inequality, social welfare, and trade," Journal of Development Economics, Elsevier, vol. 96(2), pages 422-431, November.
    7. Aaberge, Rolf & Havnes, Tarjei & Mogstad, Magne, 2013. "A Theory for Ranking Distribution Functions," IZA Discussion Papers 7738, Institute of Labor Economics (IZA).
    8. Nanak Kakwani & Xiaobing Wang & Ning Xue & Peng Zhan, 2022. "Growth and Common Prosperity in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(1), pages 28-57, January.
    9. Ulrich Schmidt & Philipp C. Wichardt, 2019. "Inequity aversion, welfare measurement and the Gini index," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(3), pages 585-588, March.
    10. Peter Lambert & Thor Thoresen & Runa Nesbakken, 2010. "On the Meaning and Measurement of Redistribution in Cross-Country Comparisons," LIS Working papers 532, LIS Cross-National Data Center in Luxembourg.
    11. Duclos, J.Y. & Tabi, M., 1996. "Linear Inequality Measures and the Redistribution of Income," Papers 9613, Laval - Recherche en Politique Economique.
    12. Francesca Greselin & Simone Pellegrino & Achille Vernizzi, 2020. "The Social Welfare Implications of the Zenga Index," Papers 2006.12623, arXiv.org.
    13. Jorge Onrubia Fernández & María del Carmen Rodado Ruiz, 2015. "oGravamen individual o grupal en el IRPF? Una valoración desde la movilidad distributiva," Studies on the Spanish Economy eee2015-01, FEDEA.
    14. Joseph Francois & Hugo Rojas-Romagosa, 2004. "Household Inequality, Welfare, and the Setting of Trade Policy," Tinbergen Institute Discussion Papers 04-086/2, Tinbergen Institute.
    15. Flores Unzaga, Ismael Martin & Zhu, Junyi, 2014. "Bracket Creep Revisited: Progressivity and a Solution by Adjusting the Rich Tax in Germany," MPRA Paper 57664, University Library of Munich, Germany.
    16. Kenneth V. Greene & Erol M. Balkan, 1987. "A Comparative Analysis of Tax Progressivity in the United States," Public Finance Review, , vol. 15(4), pages 397-416, October.
    17. Donald W. Kiefer, 1991. "A Comparative Analysis of Tax Progressivity in the United States: a Reexamination," Public Finance Review, , vol. 19(1), pages 94-108, January.
    18. Nicola Cantore, 2005. "Reconsidering the Environmental Kuznets Curve hypothesis: the trade off between environment and welfare," Working Papers 13, ECINEQ, Society for the Study of Economic Inequality.
    19. Peter J. Lambert & Wilhelm Pfähler, 1988. "On Aggregate Measures of the Net Redistributive Impact of Taxation and Government Expenditure," Public Finance Review, , vol. 16(2), pages 178-202, April.
    20. DUCLOS, Jean-Yves, 1995. "Measuring Progressivity and Inequality," Cahiers de recherche 9525, Université Laval - Département d'économique.

    More about this item

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lis:liswps:786. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Piotr Paradowski (email available below). General contact details of provider: https://edirc.repec.org/data/lisprlu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.