2017
DOI: 10.7866/hpe-rpe.17.1.4
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Economic Downturns, Endogenous Government Policy and Welfare Caseloads

Abstract: Governments can soften the impact of the business cycle on welfare spending. Depending on the po litical costs and the extent of unemployment, they might choose between a decrease in the proportion of accepted applications, a decrease in the level of benefits, or some combination of the two. This paper is motivated by this concern, weaving together the intensive literature on the determinants of welfare caseloads and the fundamentals of public choice theory applied to the design of welfare programs. The paper … Show more

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Cited by 6 publications
(4 citation statements)
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References 27 publications
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“…Moreover, we also apply the Zivot-Andrews breakpoint unit root test in order to avoid misleading and biased results. We follow Ayala and Triguero (2017) and apply Baum's modified methodology for unit root testing against the alternative of trend stationarity with a shift in time trend, shift in mean, and a shift in both slope and intercept.…”
Section: Insights Into Regional Developmentmentioning
confidence: 99%
“…Moreover, we also apply the Zivot-Andrews breakpoint unit root test in order to avoid misleading and biased results. We follow Ayala and Triguero (2017) and apply Baum's modified methodology for unit root testing against the alternative of trend stationarity with a shift in time trend, shift in mean, and a shift in both slope and intercept.…”
Section: Insights Into Regional Developmentmentioning
confidence: 99%
“…Ayala and Pérez (2005) found that institutional factors were more important in the changes in the caseloads than were macroeconomic conditions. In a more recent contribution, Ayala and Triguero (2017) found that the economic cycle has a great influence on the number of recipients.…”
Section: Evolution Of the Systemmentioning
confidence: 99%
“…These possible movements are linked, however, to the questionable assumption that the benefit levels are independent of the economic cycle. One might think that in recessions − as happened in the last crisis (Ayala & Triguero, 2017) − decision‐makers introduce cuts to avoid spending levels on the programmes that are difficult to sustain in contexts of government budget deficits.…”
Section: The Limited Adequacy Of Minimum Income Benefitsmentioning
confidence: 99%
“…Specifically, the Spanish health sector suffered a reduction of 8,778 million euros in the period 2009-2013, that is 12.5% of reduction, which induce that, according to the reports of the Sociedad Española de Salud Pública y Administración Sanitaria, many primary attention centers closed, and the numbers of beds, operating rooms, and sanitary staff, among others, were drastically reduced, inducing an in-crease in numbers on the waiting lists (43% from 2009 to 2012). All of these adjustments have clearly affected the welfare of the country either economically (Ayala and Triguero, 2017) or socially Cerno, Pérez and Sanz (2017), for instance, with respect to the quality of the Public services.…”
Section: Introductionmentioning
confidence: 99%