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Assessment Of Inter-Regional Convergence In The Social Welfare Based On The A. Sen Function: Russian Case Study

Author

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  • Malkina, Marina

    (Lobachevsky State University of Nizhni Novgorod, Russia)

Abstract

The aim of this study is estimation of social welfare in Russian regions in 2004-2014 based on the A. Sen abbreviated function, the assessment of regions convergence in welfare and factors contributing to it. We adjusted the A. Sen welfare function by the cost of living in regions and presented it as a four-factor multiplicative model. By use of the coefficient of variation (CV) we estimated the inter-regional inequality in welfare in statics and dynamics. The technique of decomposition of the squared CV for logarithm of welfare function enabled us to evaluate the contribution of main and intersect factors to Russian regions' convergence in welfare. As a result we assessed Russian regions social welfare in dynamics and evaluated factors contributing to its growth. Based on the weighted CV we discovered the negative impact of the recession of 2009 on the regions convergence in welfare, and unweighted CV even more revealed the turning point in the convergence tendency occurring in 2012. We discovered that in statics the redistributive factor makes the greatest and increasing contribution to inter-regional convergence in welfare, whilst the cost of living and intraregional income inequality factors have moderate and decreasing influence on it. The dynamic analysis revealed two factors predominantly contributing to regions' temporal convergence in welfare, namely growing convergence in GRP per capita and significant but unstable influence of distributive factor. Two other factors, the cost of living and intra-regional income inequality, counteracted to temporal convergence mainly due to attenuation of their negative correlation to nominal and real income per capita respectively. The results obtained may be applicable to both inter-budgetary and regional policy development.

Suggested Citation

  • Malkina, Marina, 2017. "Assessment Of Inter-Regional Convergence In The Social Welfare Based On The A. Sen Function: Russian Case Study," Journal of Economic and Social Development, Clinical Journals Press, vol. 4(01), pages 01-11, March.
    • Handle: RePEc:ris:joeasd:0130
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    References listed on IDEAS

    as
    1. Dagum, Camilo, 1990. "On the relationship between income inequality measures and social welfare functions," Journal of Econometrics, Elsevier, vol. 43(1-2), pages 91-102.
    2. Andrade, Daniel Caixeta & Garcia, Junior Ruiz, 2015. "Estimating the Genuine Progress Indicator (GPI) for Brazil from 1970 to 2010," Ecological Economics, Elsevier, vol. 118(C), pages 49-56.
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    4. repec:bla:econom:v:72:y:2005:i:3:p:375-396 is not listed on IDEAS
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    More about this item

    Keywords

    Abbreviated functions; Convergence; Decomposition; Factors; Inequality; Region; Coefficient of Variation; Welfare;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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