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Efficiency and Effectiveness of Social Spending

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CONTRIBUTORS:
  Author Tausch, Arno (University of Innsbruck)
  Author Heshmati, Almas
  Author Herrmann, Peter
  Author Bajalan, Chemen S. J.
JOURNAL:
  IZA Discussion Paper 3482, May (2008), 1 - 54.
YEAR: 2008
PUB TYPE: Journal Article
SUBJECT(S): Find related papers by 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, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes F2 - International Economics - - International Factor Movements and International Business F5 - International Economics - - International Relations and International Political Economy
DISCIPLINE: Political Science
HTTP: http://ideas.repec.org/p/iza/izadps/dp3482.html
LANGUAGE: English
PUB ID: 103-442-915 (Last edited on 2008/05/29 08:06:58 GMT-6)
SPONSOR(S):
 
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.
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