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

Listed author(s):
  • D. Evans
  • E. Kula
  • H. Sezer
Registered author(s):

    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.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400500289937
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    Article provided by Taylor & Francis Journals in its journal Regional Studies.

    Volume (Year): 39 (2005)
    Issue (Month): 7 ()
    Pages: 923-937

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    Handle: RePEc:taf:regstd:v:39:y:2005:i:7:p:923-937
    DOI: 10.1080/00343400500289937
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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 Anthony & Pick, Daniel, 1998. "Seasonality and unit roots: the demand for fruits," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 18(1), January.
    3. 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.
    4. 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.
    5. 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.
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