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Empirical determinants of in-kind redistribution: Partisan biases and the role of inflation

  • Hessami, Zohal
  • Silke, Uebelmesser

There is a dearth of research on the determinants of in-kind redistribution. Using dynamic panel data estimations for 32 OECD countries, we show that the in-kind share of social benefits is lower under left-wing governments. This effect is weakened when left-wing governments respond to inflation by increasing the share of in-kind transfers.

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File URL: http://mpra.ub.uni-muenchen.de/38494/1/MPRA_paper_38494.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38494.

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Date of creation: 14 Mar 2012
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Handle: RePEc:pra:mprapa:38494
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  1. Dan Anderberg & Alessandro Balestrino, 2011. "Public Spending and Taxation with Non-cooperative Families," CESifo Economic Studies, CESifo, vol. 57(2), pages 259-282, June.
  2. Janet Currie & Firouz Gahvari, 2007. "Transfers in Cash and In Kind: Theory Meets the Data," NBER Working Papers 13557, National Bureau of Economic Research, Inc.
  3. Fernandez, Raquel & Rogerson, Richard, 1997. "Eudcation Finance Reform and Investment in Human Capital : Lessons from California," Working Papers 97-21, C.V. Starr Center for Applied Economics, New York University.
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  7. Bearse, P. & Glomm, G. & Janeba, E., 2000. "Why poor countries rely mostly on redistribution in-kind," Journal of Public Economics, Elsevier, vol. 75(3), pages 463-481, March.
  8. Glomm, Gerhard & Ravikumar, B., 2003. "Public education and income inequality," European Journal of Political Economy, Elsevier, vol. 19(2), pages 289-300, June.
  9. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
  10. Baskaran, Thushyanthan, 2011. "Revenue decentralization and inflation: a re-evaluation," MPRA Paper 36911, University Library of Munich, Germany.
  11. Dani Rodrik, 1996. "Why Do More Open Economies Have Bigger Governments?," NBER Working Papers 5537, National Bureau of Economic Research, Inc.
  12. Beck, Thorsten & Clarke, George & Groff, Alberto & Keefer, Philip & Walsh, Patrick, 2000. "New tools and new tests in comparative political economy - the database of political institutions," Policy Research Working Paper Series 2283, The World Bank.
  13. Easterly, William & Fischer, Stanley, 2000. "Inflation and the poor," Policy Research Working Paper Series 2335, The World Bank.
  14. Al-Marhubi, Fahim, 1997. "A note on the link between income inequality and inflation," Economics Letters, Elsevier, vol. 55(3), pages 317-319, September.
  15. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December.
  16. Dan Anderberg & Alessandro Balestrino, 2007. "Non-cooperative Households and the Size and Composition of Public Expenditure," Economics of Governance, Springer, vol. 8(1), pages 61-81, January.
  17. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
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