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The Distributional Effects of Public Expenditure

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  • Gerd Schwartz
  • Teresa Ter‐Minassian

Abstract

It is commonly agreed that economic policies, including budgetary policies, can have potentially strong distributional effects. Traditional economic analysis held that economic policies affected the income distribution primarily through their impact on the rate of growth. More recently, it has come to be recognised that qualitative aspects of economic growth are probably more important than the rate of growth itself. While recent research has confirmed the potential role of expenditure policies as a redistributive tool, it has also shown that redistribution does not necessarily have to come at the expense of economic growth and efficiency. Although there are substantial analytical and technical problems to be faced in the design of equitable and cost‐effective public expenditure programmes, unfavourable distributional outcomes of these programmes can usually be traced more to political and institutional pressures than to purely technical factors. JEL Classification number: H5

Suggested Citation

  • Gerd Schwartz & Teresa Ter‐Minassian, 2000. "The Distributional Effects of Public Expenditure," Journal of Economic Surveys, Wiley Blackwell, vol. 14(3), pages 337-358, July.
    • Handle: RePEc:bla:jecsur:v:14:y:2000:i:3:p:337-358
    DOI: 10.1111/1467-6419.00113
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    Cited by:

    1. Raúl Del Pozo-Rubio & Fernando Bermejo-Patón & Pablo Moya-Martínez, 2022. "Impact of implementation of the Dependency Act on the Spanish economy: an analysis after the 2008 financial crisis," International Journal of Health Economics and Management, Springer, vol. 22(1), pages 111-128, March.
    2. Abdulaleem Isiaka & Alexander Mihailov & Giovanni Razzi, 2022. "Reallocating Government Spending to Reduce Income Inequality: Panel Data Evidence from the Middle-Income Countries," Economics Discussion Papers em-dp2022-08, Department of Economics, University of Reading.
    3. Emerta Aragie & Jean Balié, 2021. "Public spending on agricultural productivity and rural commercialization: A comparison of impacts using an economy‐wide approach," Development Policy Review, Overseas Development Institute, vol. 39(S1), pages 21-41, August.
    4. D. Tripati Rao, 2003. "Managing Economies," Review of Radical Political Economics, Union for Radical Political Economics, vol. 35(1), pages 73-77, March.

    More about this item

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies

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