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Exploring Convergence in some OECD Public Social Expenditure Trends

Author

Listed:
  • De Simone, Elina
  • Gaeta, Giuseppe Lucio
  • Ercolano, Salvatore

Abstract

Triggered by the phenomenon of globalisation, during recent years there has been a process of State policy rationalisation in the social expenditure domain; hence the debate over the present role and dimension of welfare state has intensified. Following on the extensive multidisciplinary literature on this issue, the purpose of this paper is two-fold 1) to apply a more traditional analysis of convergence (sigma and beta convergence) in public social expenditures and 2) to analyse public social expenditure allocation expressed as a % of GDP and derive a possible classification of the countries by means of a multivariate approach. We conclude by explaining some similarities in the expenditure behaviour of certain countries in terms of the policy transfer process. Our results can be interpreted as a further contribution to the literature on contemporary public policy evaluation in the welfare domain.

Suggested Citation

  • De Simone, Elina & Gaeta, Giuseppe Lucio & Ercolano, Salvatore, 2010. "Exploring Convergence in some OECD Public Social Expenditure Trends," MPRA Paper 22496, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:22496
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    File URL: https://mpra.ub.uni-muenchen.de/22496/1/MPRA_paper_22496.pdf
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    References listed on IDEAS

    as
    1. James Banks & Richard Disney & Alan Duncan & John Van Reenen, 2005. "The Internationalisation of Public Welfare Policy," Economic Journal, Royal Economic Society, vol. 115(502), pages 62-81, March.
    2. Vicente Navarro & John Schmitt & Javier Astudillo, 2004. "Is globalisation undermining the welfare state?," Cambridge Journal of Economics, Oxford University Press, vol. 28(1), pages 133-152, January.
    3. Axel Dreher & Jan-Egbert Sturm & Heinrich Ursprung, 2008. "The impact of globalization on the composition of government expenditures: Evidence from panel data," Public Choice, Springer, vol. 134(3), pages 263-292, March.
    4. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    5. Ismael Sanz & Francisco J. Vel·zquez, 2004. "The Evolution and Convergence of the Government Expenditure Composition in the OECD Countries," Public Choice, Springer, vol. 119(1_2), pages 61-72, April.
    6. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    7. Streissler, Erich, 1979. "Growth Models as Diffusion Processes," Kyklos, Wiley Blackwell, vol. 32(1/2), pages 251-269.
    8. repec:cup:apsrev:v:98:y:2004:i:01:p:171-189_00 is not listed on IDEAS
    9. Tanzi,Vito & Schuknecht,Ludger, 2000. "Public Spending in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521662918, April.
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    Cited by:

    1. Domazet Anto & Sendić Rusmir & Alić Adi, 2012. "Convergence analysis of household expenditures using the absolute β-convergence method," Business Systems Research, De Gruyter Open, vol. 3(1), pages 23-29, June.

    More about this item

    Keywords

    Policy Making; Welfare Programme; Public social Expenditures; Policy Transfer; principal component analysis; cluster analysis;

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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