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Regional welfare weights for the UK: England, Scotland, Wales and Northern Ireland

Author

Listed:
  • D. Evans
  • E. Kula
  • H. Sezer

Abstract

Evans D., Kula E. and Sezer H. (2005) Regional welfare weights for the UK: England, Scotland, Wales and Northern Ireland, Regional Studies 39 , 923-937. In relation to public spending and regional policy, the importance of distributional issues is stressed, and regional welfare weights are derived from an appropriate underlying social welfare function. Estimates of these weights are then provided for the four countries comprising the UK. Welfare weights now have a very high policy profile following the special emphasis placed by the UK Treasury, in its recently revised guidance on appraisal and evaluation in government, on the assessment of the distributional impacts of social projects and policies. From an empirical perspective, the critical component of each welfare weight measure is the elasticity of marginal utility of income ( e ). Alternative estimation approaches based on demand analysis and income tax data are used to determine e , and a preferred measure of 1.60 emerges. The resulting regional welfare weights are then compared with recent patterns of per-capita regional public expenditure in the UK. The paper concludes by emphasizing the scope for further empirical work on welfare weights and regional policy in relation to both the UK and the European Union.

Suggested Citation

  • D. Evans & E. Kula & H. Sezer, 2005. "Regional welfare weights for the UK: England, Scotland, Wales and Northern Ireland," Regional Studies, Taylor & Francis Journals, vol. 39(7), pages 923-937.
  • Handle: RePEc:taf:regstd:v:39:y:2005:i:7:p:923-937
    DOI: 10.1080/00343400500289937
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    References listed on IDEAS

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    1. Neal Blue, E. & Tweeten, Luther, 1997. "The estimation of marginal utility of income for application to agricultural policy analysis," Agricultural Economics, Blackwell, vol. 16(3), pages 155-169, August.
    2. Arnade, Carlos & Pick, Daniel, 1998. "Seasonality and unit roots: the demand for fruits," Agricultural Economics, Blackwell, vol. 18(1), pages 53-62, January.
    3. R. A. Sharma & M. J. McGregor & J. F. Blyth, 1991. "The Social Discount Rate For Land-Use Projects In India," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 86-92.
    4. Iain Fraser & Imad A. Moosa, 2002. "Demand Estimation in the Presence of Stochastic Trend and Seasonality: The Case of Meat Demand in the United Kingdom," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 83-89.
    5. Arnade, Carlos & Pick, Daniel, 1998. "Seasonality and unit roots: the demand for fruits," Agricultural Economics, Blackwell, vol. 18(1), pages 53-62, January.
    6. Blue, E. Neal & Tweeten, Luther, 1997. "The estimation of marginal utility of income for application to agricultural policy analysis," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 16(3), August.
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    Citations

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    Cited by:

    1. Massimo Florio & Emanuela Sirtori, 2013. "The social cost of capital: recent estimates for the EU countries," Working Papers 201303, CSIL Centre for Industrial Studies.
    2. Erhun KULA, 2006. "Regional welfare weights," Departmental Working Papers 2006-32, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    3. David J. EVANS, 2006. "Social discount rates for the European Union," Departmental Working Papers 2006-20, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

    More about this item

    Keywords

    Welfare weights; Marginal utility; UK; Ponderations relatives a la protection sociale; Utlilite marginale; Royaume-Uni; Wohlfahrtslasten; Grenznutzung; UK; Indices de bienestar social; Marginal de los ingresos; Reino Unido; JEL classifications: D60; D61; R10;

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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    This item is featured on the following reading lists or Wikipedia pages:
    1. User:Matt Lewis/Nationality within the British Isles (including the United Kingdom and Ireland) in Wikipedia English ne '')
    2. Talk:Countries of the United Kingdom/refs in Wikipedia English ne '')
    3. User:Matt Lewis/Countries of the United Kingdom - sources of terms used to describe them in Wikipedia English ne '')

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