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The distributional impact of public spending in the UK

Author

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  • Cormac O'Dea

    (Institute for Fiscal Studies and Yale University)

  • Ian Preston

    (Institute for Fiscal Studies and University College London)

Abstract

Public spending in the UK in 2008/9 amounted to over £10,000 per person or about 43% of national income (Crawford, Emmerson and Tetlow 2009) while net receipts from tax and social security contributions exceeded £8,000 per person or about 35% of national income. These transfers of resources between individuals and the state, either as cash payments or as supply of goods, affect individual standards of living and do so in ways that differ markedly between different households. Assessing the impact of government activity on the distribution of household living standards is essential to the evaluation of public service provision but raises challenging conceptual issues that we discuss in this report.

Suggested Citation

  • Cormac O'Dea & Ian Preston, 2012. "The distributional impact of public spending in the UK," IFS Working Papers W12/06, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:12/06
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    2. Matěj Bajgar & Petr Janský, 2015. "Skutečná kupní síla v krajích České republiky: zohlednění regionální cenové hladiny a struktury pracovní síly [Purchasing Power in the Regions: Reflecting Price Levels and Employment Structures]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(7), pages 860-876.
    3. Bonin, Holger & Camarero Garcia, Sebastian & Lay, Max & Liu, Vivien & Neisser, Carina & Ody, Margard & Riedel, Lukas & Stichnoth, Holger & Ungerer, Martin & Wehrhöfer, Nils, 2018. "Machbarkeitsstudie und Ableitung von Forschungsfragen zu Bedeutung, Inanspruchnahme und Verteilungswirkungen von gesellschaftlich notwendigen Dienstleistungen. Endbericht," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 184658.
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