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Exploring Convergence in some OECD Public Social Expenditure Trends

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  • De Simone, Elina
  • Gaeta, Giuseppe Lucio
  • Ercolano, Salvatore

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 more 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. We conclude by explaining some similarities in the expenditure behaviour of certain countries in terms of the policy transfer process. Our results 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

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22496.

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Date of creation: 29 Apr 2010
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Handle: RePEc:pra:mprapa:22496

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Keywords: Policy Making; Welfare Programme; Public social Expenditures; Policy Transfer; principal component analysis; cluster analysis;

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  1. Tanzi,Vito & Schuknecht,Ludger, 2000. "Public Spending in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521662918, October.
  2. Barro, Robert J., 1990. "Government Spending in a Simple Model of Endogeneous Growth," Scholarly Articles 3451296, Harvard University Department of Economics.
  3. James Banks & Richard Disney & Alan Duncan & John Van Reenen, 2004. "The internationalisation of public welfare policy," LSE Research Online Documents on Economics 769, London School of Economics and Political Science, LSE Library.
  4. Ismael Sanz & Francisco J. Vel·zquez, 2004. "The Evolution and Convergence of the Government Expenditure Composition in the OECD Countries," Public Choice, Springer, vol. 119(1_2), pages 61-72, 04.
  5. Axel Dreher & Jan-Egbert Sturm & Heinrich Ursprung, 2006. "The Impact of Globalization on the Composition of Government Expenditures: Evidence from Panel Data," CESifo Working Paper Series 1755, CESifo Group Munich.
  6. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  7. Streissler, Erich, 1979. "Growth Models as Diffusion Processes," Kyklos, Wiley Blackwell, vol. 32(1/2), pages 251-69.
  8. Vicente Navarro & John Schmitt & Javier Astudillo, 2004. "Is globalisation undermining the welfare state?," Cambridge Journal of Economics, Oxford University Press, vol. 28(1), pages 133-152, January.
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Cited by:
  1. Anto Domazet & Rusmir Sendić & Adi Alić, 2012. "Convergence analysis of household expenditures using the absolute β-convergence method," Business Systems Research, Society for Promotion of Business Information Technology (BIT), vol. 3(1), pages 23-29.

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