Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp3482.html
   My bibliography  Save this paper

Efficiency and Effectiveness of Social Spending

Author

Listed:
  • Herrmann, Peter

    (Corvinus University of Budapest)

  • Tausch, Arno

    (University of Innsbruck)

  • Heshmati, Almas

    (Jönköping University)

  • Bajalan, Chemen S. J.

    (University of Kurdistan Hawler)

Abstract
In this qualitative sociological and quantitative economic policy paper, we start out from the assumption of a very recent European Commission Background paper on the “Efficiency and effectiveness of social spending”, which says the effectiveness of social spending can be defined by the degree to which the realized allocation approaches the socially desired outcome. The conclusions listed in the Commission paper are found far reaching and not supported by the empirical data. We perform such an analysis, starting from advances in recent literature. A more encompassing sociological perspective on the issue and factor analytical calculations is presented, which supports our general argument about the efficiency of the Scandinavian model. The social quality approach provides an alternative perspective on welfare system analysis, focusing on public policies rather than social policies. The empirical evidence, suggests that in terms of the efficiency of the European social model, the geography of comparative performance include: the direct action against social exclusion, health and family social expenditures, the neo-liberal approach, and the unemployment benefit centred approach. Applying rigorous comparative social science methodology, we also arrive at the conclusion that in terms of the initial ECOFIN definition of efficiency, the data presented in this article suggest that apart from Finland and the Netherlands, three new EU-27 member countries, especially the Czech Republic and Slovenia, provide interesting answers to the question about the efficiency of state expenditures in reducing poverty rates.

Suggested Citation

  • Herrmann, Peter & Tausch, Arno & Heshmati, Almas & Bajalan, Chemen S. J., 2008. "Efficiency and Effectiveness of Social Spending," IZA Discussion Papers 3482, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3482
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp3482.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tony Addison & Almas Heshmati, 2003. "The New Global Determinants of FDI Flows to Developing Countries: The Importance of ICT and Democratization," WIDER Working Paper Series DP2003-45, World Institute for Development Economic Research (UNU-WIDER).
    2. Karl Aiginger, 2007. "Performance Differences in Europe: Tentative Hypotheses on the Role of Institutions," WIFO Working Papers 304, WIFO.
    3. Andersen, Torben M. & Herbertsson, Tryggvi Thor, 2003. "Measuring Globalization," IZA Discussion Papers 817, Institute of Labor Economics (IZA).
    4. Almas Heshmati & JongEun Oh, 2006. "Alternative Composite Lisbon Development Strategy Indices: A Comparison of EU, USA, Japan and Korea," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 3(2), pages 131-170, December.
    5. Karl Aiginger & Alois Guger & Thomas Leoni & Ewald Walterskirchen, 2007. "Reform Perspectives on Welfare State Models in Global Capitalism," WIFO Working Papers 303, WIFO.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Canavire Bacarreza, Gustavo J. & Puerta-Cuartas, Alejandro & Beverinotti, Javier, 2024. "Efficiency in Poverty Reduction: A State-Level Analysis for Bolivia," IZA Discussion Papers 16794, Institute of Labor Economics (IZA).
    2. Yuriy Timofeyev, 2011. "How Corruption Affects Social Expenditures: Evidence From Russia," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 5(4), pages 39-51.
    3. Svetlana Vtyurina, 2020. "Effectiveness and Equity in Social Spending - The Case of Spain," IMF Working Papers 2020/016, International Monetary Fund.
    4. Tausch, Arno, 2015. "Wo Frau Kanzlerin Angela Merkel irrt: Der Sozialschutz in der Welt, der Anteil Europas und die Beurteilung seiner Effizienz [Where Chancellor Angela Merkel got it wrong: social protection in the wo," MPRA Paper 66462, University Library of Munich, Germany.
    5. Tumaniants, Karen A. (Туманянц, Карэн) & Sesina, Julia E. (Сесина, Юлия), 2017. "Social Expenditures of Russian Regions in Terms of “Input-Output” [Расходы На Социальную Политику Российских Регионов В Координатах «Затраты — Результат»]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 128-149, October.
    6. Francová, Olga & Korhonen, Kari & Kovačević, Dušan, 2023. "Quality of life: A way to buttress crisis program evaluations?," Evaluation and Program Planning, Elsevier, vol. 99(C).
    7. Tausch, Arno, 2011. "The efficiency and effectiveness of social spending in the EU-27 and the OECD – a 2011 reanalysis," MPRA Paper 33516, University Library of Munich, Germany.
    8. Muhammad Shahid Hassan & Samra Bukhari & Noman Arshed, 2020. "Competitiveness, governance and globalization: What matters for poverty alleviation?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 3491-3518, April.
    9. Francesc Valls Fonayet & Ángel Belzunegui Eraso & Jorge De Andrés Sánchez, 2020. "Efficiency of Social Expenditure Levels in Reducing Poverty Risk in the EU‐28," Poverty & Public Policy, John Wiley & Sons, vol. 12(1), pages 43-62, March.
    10. Jorge de Andrés-Sánchez & Angel Belzunegui-Eraso & Francesc Valls-Fonayet, 2021. "Assessing Efficiency of Public Poverty Policies in UE-28 with Linguistic Variables and Fuzzy Correlation Measures," Mathematics, MDPI, vol. 9(2), pages 1-25, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tausch, Arno, 2008. "On the world market trajectory of 21 major book publishing companies in globalization and European studies in 100+ countries. From “Amsterdam University Press” via “Palgrave” and “Nova Science Publish," MPRA Paper 9613, University Library of Munich, Germany.
    2. Tausch, Arno, 2008. "The Efficiency of Social Expenditures in the Fight Against Extreme Poverty in Europe [Die Effizienz Der Sozialausgaben Im Kampf Gegen Extreme Armut in Europa]," MPRA Paper 10612, University Library of Munich, Germany.
    3. Baseem Al-Athwari & Jorn Altmann & Almas Heshmati, 2013. "A Conceptual Model and Methodology for Evaluating E-Infrastructure Deployment and Its Application to OECD and MENA Countries," TEMEP Discussion Papers 2013102, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Apr 2013.
    4. Tausch, Arno & Heshmati, Almas, 2014. "Testing an EU-Candidate's Place on the Maps of Global Economic, Political and Social Values: The Case of Turkey," IZA Discussion Papers 8163, Institute of Labor Economics (IZA).
    5. Tausch, Arno, 2009. "Schaufenster Griechenland – was kann aus dem aktuellen Debakel für das soziale Europa gelernt werden? [Showcase Greece – what can be learnt from the current debacle for a Social Europe?]]," MPRA Paper 14251, University Library of Munich, Germany.
    6. Heshmati, Almas, 2007. "A Model for Industrial Development of the Federal Region of Kurdistan: Science and Technology Policy, Instruments and Institutions," IZA Discussion Papers 3213, Institute of Labor Economics (IZA).
    7. Tausch, Arno & Heshmati, Almas & Bajalan, Chemen S. J., 2007. "On the Multivariate Analysis of the "Lisbon Process"," IZA Discussion Papers 3198, Institute of Labor Economics (IZA).
    8. Harry Bowen & Haris Munandar & Jean-Marie Viaene, 2010. "How integrated is the world economy?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 389-414, September.
    9. Martin Ana Vera & Tulla Antoni F., 2019. "Innovation, Spatial Loyalty, and ICTs as Locational Determinants of Rural Development in the Catalan Pyrenees," European Countryside, Sciendo, vol. 11(4), pages 517-540, December.
    10. Looney, R. & Frederiksen, P. C., 2004. "An assessment of relative globalization in Asia during the 1980s and 1990s," Journal of Asian Economics, Elsevier, vol. 15(2), pages 267-285, April.
    11. Fertig, Michael, 2003. "The Impact of Economic Integration on Employment - An Assessment in the Context of EU-Enlargement," RWI Discussion Papers 7, RWI - Leibniz-Institut für Wirtschaftsforschung.
    12. Heshmati, Almas & Oh, Jong-Eun, 2005. "Alternative Composite Lisbon Development Strategy Indices," IZA Discussion Papers 1734, Institute of Labor Economics (IZA).
    13. Akhtaruzzaman, M. & Berg, Nathan & Hajzler, Christopher, 2017. "Expropriation risk and FDI in developing countries: Does return of capital dominate return on capital?," European Journal of Political Economy, Elsevier, vol. 49(C), pages 84-107.
    14. Heshmati, Almas, 2004. "The Relationship between Income Inequality, Poverty and Globalisation," IZA Discussion Papers 1277, Institute of Labor Economics (IZA).
    15. Noha Emara & Ayah El Said, 2021. "Sovereign ratings, foreign direct investment and contagion in emerging markets: Does being a BRICS country matter?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5217-5234, October.
    16. Dzianis Mukha, 2019. "National Economy Attractiveness For Foreign Direct Investment: Evidence From Belarus And European Region Countries," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 13(1), pages 43-60.
    17. Wang, Wencheng & Ning, Zinan & Shu, Yang & Riti, Miriam-Kamah J. & Riti, Joshua Sunday, 2023. "ICT interaction with trade, FDI and financial inclusion on inclusive growth in top African nations ranked by ICT development," Telecommunications Policy, Elsevier, vol. 47(4).
    18. Koepke, Robin, 2015. "What Drives Capital Flows to Emerging Markets? A Survey of the Empirical Literature," MPRA Paper 62770, University Library of Munich, Germany.
    19. Wang, Zhe & Jiang, Dianchun & Zhang, Ming, 2024. "Seeking new location advantages: Analysis of emerging digital cross-border M&As—Based on TIMG index," International Business Review, Elsevier, vol. 33(2).
    20. Heshmati, Almas & Davis, Rhona, 2007. "The Determinants of Foreign Direct Investment Flows to the Federal Region of Kurdistan," IZA Discussion Papers 3218, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    economic integration; cross-sectional models; spatial models; regional economic activity; European Commission; international factor movements; international political economy; index numbers and aggregation; social spending;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F15 - International Economics - - Trade - - - Economic Integration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • F2 - International Economics - - International Factor Movements and International Business
    • F5 - International Economics - - International Relations, National Security, and International Political Economy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3482. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.