2021 ◽  
Vol 16 (1) ◽  
pp. 130-151
Author(s):  
Fernanda Andrade de Xavier ◽  
Aparna P. Lolayekar ◽  
Pranab Mukhopadhyay

We study the effect of revenue decentralization (RD) and expenditure decentralization (ED) on sub-national growth in India from 1981–1982 to 2015–2016 for 14 large (non-special-category) states. Our study provides evidence that both RD and ED play a defining role in India’s sub-national growth in this three-and-a-half-decade period. We use a panel data model with fixed effects (FE) and Driscoll and Kraay standard errors that control for heteroscedasticity, autocorrelation and cross-sectional dependence. To test for causality between growth and decentralization, we use the Granger non-causality test. The regression analysis is supplemented with the distribution dynamics approach. We find that: (a) While decentralization Granger-caused economic growth, the reverse causality effect of growth on decentralization was not significant; (b) Economic growth increased significantly after liberalization; (c) Decentralization, capital expenditure and social expenditure had significant positive impacts on economic growth; and (d) States that had high levels of decentralization also had high levels of per capita income, while states that had low decentralization also exhibited low per capita income.


2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Anna Magdalena Korzeniowska

AbstractSocial expenditure plays an important role in European Union (EU) countries. It improves the lives of citizens whose welfare is endangered due to poverty or illness. However, social expenditure represents a considerable share of the budgets of EU member states. Despite evident similarities in their levels of development, EU countries show apparent differences in social expenditure levels. Therefore, this work aims to determine the similarities and differences between EU countries in this regard. The analysis uses clustering methods, such as hierarchical cluster analysis and the k-means, to divide countries into homogeneous groups. The research demonstrates significant differences between EU countries in the years 2008–2018, which resulted in a low number of objects (countries) in the identified groups. In the case of 6 out of 28 countries, it was not possible to assign them to any group. The research proves that EU countries should take more care when organising their social policy, taking into consideration cultural and social factors.


2004 ◽  
Vol 4 (2) ◽  
pp. 1850020 ◽  
Author(s):  
Peter Hennessy ◽  
Thierry Warin

This paper addresses the question of the social policy harmonization in the European Union. In adopting a common monetary policy, Europe is faced with structural and fiscal concerns, as national growth levels differ. Another possible factor in output shocks are the levels of various social expenditures in the member countries. OECD data on the level of social program expenditures in four EU countries will be compared to fluctuations in GDP growth to identify existing relationships. Significant relationships between independent social expenditure policy and GDP growth shocks suggest structural harmonization as an improvement if Europe is to take full advantage of the common market. However, the effects of expenditure levels may be easier to identify and predict than the dynamic effects of policy change. As the effects of future policy changes are more difficult to ascertain, harmonization may not consistently appear to be a Pareto-optimum solution to asymmetric shocks.


2015 ◽  
Vol 126 (3) ◽  
pp. 1089-1108 ◽  
Author(s):  
Antonio M. Jaime-Castillo ◽  
Ildefonso Marqués-Perales ◽  
Javier Álvarez-Gálvez

Author(s):  
Taewook Huh ◽  
Yun Young Kim

This study analyzes how the three pillars of sustainable development (economic growth, social justice, and environmental protection) have influenced each other for the past twenty-six years (from 1987 to 2013). The relationship between the triangular pillar of SD can be characterized by “ecological modernization”, “eco-socialism”, and the traditional debate between growth and distribution. This paper examined the correlation analysis of the nine representative variables in the three categories, adopting the cases of twenty-six OECD countries. In particular, the panel analysis (PCSE models) was conducted to identify the seven independent determinants affecting both response (dependent) variables and environmental factors (“CO2 emissions” and “renewable electricity output”). In short, during the entire period, the findings reveal that all economic and social variables did not have a positive impact on reducing CO2 emissions. However, the variables of “employment in industry” and “social expenditure” are effected by the increase of renewable electricity output. Consequently, highlighting the detailed findings different for each set period (1987–2013, 1987–2002, and 2003–2013), this study suggests the implications of the analysis result in the light of the theories of ecological modernization and eco-socialism.


2011 ◽  
Vol 15 (4) ◽  
pp. 315-335 ◽  
Author(s):  
Michael Nollert ◽  
Sebastian Schief

Most welfare state typologies still characterize Switzerland as a liberal welfare regime. However, recent research shows that its welfare state did not retrench but instead moved towards the conservative type. Nevertheless, higher social expenditure has not been accompanied by increases in taxation. Moreover, Switzerland managed to overcome the so-called trilemma of the service economy. After analyzing the shift of the Swiss welfare state from a liberal to a conservative welfare regime, we argue that the Swiss economic success story of the twentieth century is based on a favourable policy mix (tax system, labour market, financial sector) used to compete successfully in the world market for protection. We conclude that, as a political entrepreneur, Switzerland has the capability to receive taxes and investments from foreign individuals and enterprises, wealthy residents and high-skilled and well-paid immigrants to finance the welfare state and to overcome the trilemma of the service economy.


2021 ◽  
pp. 152-172
Author(s):  
Willem Adema ◽  
Peter Whiteford

This chapter contributes to the discussion of public and private social welfare by drawing together recent information on these different ways of providing social benefits. It presents data on public social expenditure for 2015–17 and accounts for the impact of the tax system and private social expenditure to develop indicators on net social expenditure for 2015. The chapter shows that conventional estimates of gross public spending differ significantly from estimates of net public spending and net total social expenditure, leading to an incorrect measurement and ranking of total social welfare effort across countries.Just as importantly, the fact that total social welfare support is incorrectly measured implies that the outcomes of welfare state support may also be incorrectly measured. Thus, the main objectives of the chapter include considering the implications of this more comprehensive definition of welfare state effort for analysis of the distributional impact of the welfare state and for an assessment of the efficiency and incentive effects of different welfare state arrangements.


2002 ◽  
Vol 3 (4) ◽  
pp. 299-313 ◽  
Author(s):  
Francis G. Castles

This article uses a simple statistical technique to examine whether there is a distinct European social policy model and whether such a model has consolidated during the 1980s and 1990s. In terms of total social expenditure and its major aggregates, it shows that Europe as a whole, and the countries presently constituting the EU, are somewhat more similar to each other than are the countries constituting a wider OECD grouping, but that this similarity is probably insufficient to warrant the label of European social policy model. In respect of individual programmes like pensions, health and unemployment benefits differences between Europe and the wider OECD are even less distinct. Over time, there is a general tendency for there to be greater coherence in total spending levels and in levels of expenditure on poverty alleviation and health care, but less coherence in respect of levels of social security spending. While the evidence for any kind of encompassing European social model is weak, the article does identify a Northern European grouping of countries, which, in several respects, manifests an expenditure profile quite distinct from OECD nations in general.


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