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Exploring Public Social Expenditure Trends in the Globalization Era

Author

Listed:
  • 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.

Suggested Citation

  • Elina De Simone & Giuseppe Lucio Gaeta & Salvatore Ercolano, 2012. "Exploring Public Social Expenditure Trends in the Globalization Era," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 23-42.
  • Handle: RePEc:ers:journl:v:xv:y:2012:i:1:p:23-42
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    File URL: http://www.ersj.eu/repec/ers/papers/12_1_p2.pdf
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    References listed on IDEAS

    as
    1. Tanzi,Vito & Schuknecht,Ludger, 2000. "Public Spending in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521662918, April.
    2. Keen, Michael & Marchand, Maurice, 1997. "Fiscal competition and the pattern of public spending," Journal of Public Economics, Elsevier, vol. 66(1), pages 33-53, October.
    3. Axel Dreher & Jan-Egbert Sturm & Heinrich Ursprung, 2008. "The impact of globalization on the composition of government expenditures: Evidence from panel data," Public Choice, Springer, vol. 134(3), pages 263-292, March.
    4. 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.
    5. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    6. 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, April.
    7. Dowrick, Steve & Nguyen, Duc-Tho, 1989. "OECD Comparative Economic Growth 1950-85: Catch-Up and Convergence," American Economic Review, American Economic Association, vol. 79(5), pages 1010-1030, December.
    8. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-1085, December.
    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, Taylor & Francis Journals, vol. 32(3), pages 347-370, April.
    10. 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, Taylor & Francis Journals, vol. 31(3), pages 459-484, April.
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    More about this item

    Keywords

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

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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