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Marginal Benefit Incidence Analysis of Public Spending in Nigeria

Author

Listed:
  • Reuben Adeolu Alabi
  • Oshobugie Ojor Adams
  • Chinonso Chinyere Chime
  • Ebehimerem Edith Aiguomudu
  • Sifawu Omokhefue Abu

Abstract

This study estimates the progressivity of benefit, the average benefit incidence and the marginal benefit incidence of public spending on selected public services in Nigeria, using data from the Nigeria Bureau of Statistics (NBS) 2004 Living Standard Household Survey. The analyses were carried out using Distributive Analysis Stata Package (DASP) 2.1. The results of the analyses show that spending on public services in Nigeria is not pro-poor. The marginal benefit incidence of spending on public services in Nigeria indicates that the poorest group only benefits more than the richest group from extra spending on public services which they already have relatively high access to. Finally, we use the findings of this study to formulate policy recommendations to make public spending in Nigeria pro-poor in order to accelerate the speed at which the poor enjoy additional benefits from increased access to public services in the country.

Suggested Citation

  • Reuben Adeolu Alabi & Oshobugie Ojor Adams & Chinonso Chinyere Chime & Ebehimerem Edith Aiguomudu & Sifawu Omokhefue Abu, 2011. "Marginal Benefit Incidence Analysis of Public Spending in Nigeria," Working Papers PMMA 2011-03, PEP-PMMA.
  • Handle: RePEc:lvl:pmmacr:2011-03
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    File URL: https://portal.pep-net.org/documents/download/id/17253
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    More about this item

    Keywords

    Marginal Benefit; Public Spending; Nigeria;

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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