Efficiency of the Welfare State

Gouyette, Claudine

doi:10.1111/j.1467-6435.1999.tb00232.x

Cited by 24 publications

(5 citation statements)

References 14 publications

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“…Other countries combine a below-average level of net public social expenditure (% GDP) with a above-average level in income inequality. We find a pretty good fit of a OLS-regression with the level of the Gini and the level of net public social spending (a similar regression is done by Gouyette and Pestieau, 1999); see Figure 2 (panel a). Using net public expenditure as dependent variable produces the expected negative sign, while the coefficient is statistically significant.…”

Section: The Link Between Public/private Social Protection and Incomementioning

confidence: 97%

Are Public and Private Social Expenditures Complementary?

Caminada

Goudswaard

2005

Int Adv Econ Res

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Most analyses of social protection are focussed on public arrangements. However, social effort is not restricted to the public domain; all kinds of private arrangements can be substitutes to public programs. OECD-data indicate that accounting for private social benefits and the impact of the tax system on social expenditure has an equalising effect on levels of social effort across a number of countries. This suggests complementarity between public and private social expenditures. Changes in the public/private mix in social protection will, however, have distributional effects. We expect that private schemes will generate less income redistribution than public programs. In this paper we will perform an empirical analysis. Using comparative international data we analyse whether there is a relationship between public and private social expenditures, and the distribution of income. We find a negative relationship between net public social expenditures and income inequality, but a positive relationship between net private social expenditures and income inequality across countries. In fact, when we incorporate private social security expenditures, the impact of total social expenditure on the income distribution becomes statistically trivial. We conclude that changes in the public/private mix in the provision of social protection may affect the redistributive impact of the welfare state. JEL-classification: D3, H22, and H55

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Section: The Link Between Public/private Social Protection and Incomementioning

confidence: 97%

Are Public and Private Social Expenditures Complementary?

Caminada

Goudswaard

2005

Int Adv Econ Res

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“…By re-employing Gouyette andPestieau's (1999) method, Ravallion (2003) conducted an empirical study to test the relative efficiency of social spending and poverty reduction, and found that the cost savings resulting from actual efficiency improvement were huge: an average of 8.6 percent of gross domestic product (GDP).…”

Section: Introductionmentioning

confidence: 99%

The Efficiency in Welfare Expenditure and Economic Growth

Park¹

2011

KJPS

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This paper analyzes the various arguments that support or oppose expansion in social welfare spending. A critical concern is the fear that as welfare expenditure increases, at some point, economic development will decrease. However, increased welfare investment is essential for achieving a welfare state to ensure the optimal growth of the economy and social welfare. OECD (Organisation for Economic Co-operation and Development) countries with a particular welfare regime that efficiently invests welfare spending are regarded as a reference for Korea. In consideration of the environmental factors in each nation, the relative efficiency Level of welfare spending is calculated with panel data. It is evident that Korea`s investment in social welfare from 2003 to 2007 was inefficient. One way to achieve an appropriate balance between social welfare and economic growth is to lessen the inefficiency of welfare investment.

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“…In contrast, Bidani and Ravallion (1997) do find a statistically significant impact of health expenditures on the poor (which they define in absolute terms as the share of the population with income below one dollar per day) in a cross-section of 35 developing countries, using a different methodology. Gouyette and Pestieau (1999) find a simple bivariate association between income inequality and social spending in a set of 13 OECD economies.…”

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confidence: 96%

Financial Liberalization and Poverty: Channels of Influence

Arestis

Caner²

2004

SSRN Journal

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Efficiency of the Welfare State

Cited by 24 publications

References 14 publications

Are Public and Private Social Expenditures Complementary?

Are Public and Private Social Expenditures Complementary?

The Efficiency in Welfare Expenditure and Economic Growth

Financial Liberalization and Poverty: Channels of Influence

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