Evaluating expenditure inequality using social welfare functions

a case study of rural India by Ranjan Ray

Publisher: University of Manchester, Faculty of Economic and Social Studies in Manchester

Written in English
Published: Downloads: 454
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Edition Notes

StatementRanjanRay.
SeriesManchester discussion papers in development studies -- 8503
ContributionsUniversity of Manchester. Faculty of Economic and Social Studies. International Development Centre.
ID Numbers
Open LibraryOL17120961M

This new research programme will update, extend and broaden analysis of public expenditure, social policies and distributional outcomes using the most recent datasets available, resulting in a unique evidence base on trends in social inequalities and social polices going back to   The aim of the paper is to examine the role of income inequality and redistribution for income-related health inequalities in Europe. This paper contributes in two ways to the literature on macro determinants of socio-economic inequalities in health. First, it widens the distinctive focus of the research field on welfare state regimes to quantifiable measures such as social policy indicators. Social welfare, in turn, depends on the welfare or "utility" of society's individuals. All other things remaining the same, social welfare in these models increases when income is transferred from the rich (who have relatively low marginal utilities of consumption) to the poor (who have relatively high marginal utilities of consumption). this Article, I show how. We can improve CBA-based policy assessment by using the “social welfare function” (SWF) as a tool to evaluate proposed regulations. The SWF framework conceptualizes the status quo and each policy alternative as a pattern of well-being across the population of concern (or, given uncertainty, as a probability.

  welfare function. Social welfare function includes all individual utility functions, with each carrying equal weight. Goal is to maximize the sum of total utility in society. 16 Inequality and theories of social justice. Interpersonal comparisons of utility are ruled out. Pareto criteria are used to evaluate different social positions. Related Books. Inequality. By Michele lead to greater disparity in families’ well-being and reduce social welfare in the long-run. because it informs the welfare evaluation of cross. On the expenditure side, we find that higher shares of GDP on social welfare, education, health and housing public expenditures have a positive impact on income distribution, individually and collectively. In terms of the magnitude of the impact, the effects of taxes on income distribution. the production function shifts and focus on the resulting consequences for welfare. As inputs to the model, we incorporate the observed U.S. time paths of the top quintile income share and capital™s share of total income, as plotted in Figure 1.

  Share of spending on social welfare in total government spending in Taiwan States with highest rural family welfare services expenditure India - by .

Evaluating expenditure inequality using social welfare functions by Ranjan Ray Download PDF EPUB FB2

This chapter provides an introduction to the use of social welfare functions in welfare economics and social choice theory for the comparative evaluation of social alternatives.

With a social welfare function, social preferences depend on individual well-beings. These well-beings are expressed in terms of either preferences or utilities. Three main approaches are considered: Bergson-Samuelson Cited by: 2. inequality, or if redistributive outcomes are offset by behavioral disincentive effects.

To account for the inherent endogeneity of social policies with regard to inequality levels, I apply the System GMM estimator and use the presumably random incidence of certain diseases as instruments for social spending levels.

Welfare for the Wealthy Parties, Social Spending, and Inequality in the United States. This book makes use of social welfare functions to derive indicators of development relevant to specific social objectives, such as poverty- and : Nanak Kakwani. growth while still considering their impact on inequality.

The section introduces a flexible social welfare function for evaluating public policies. Section analyzes changes in social welfare by distinguishing between the impact of programs and policies on the level of well-being achieved in a society (growth. The literature on income distribution has attempted to evaluate different degrees of inequality using a social welfare function (SWF) approach.

However, it has largely ignored the source of such inequalities, Evaluating expenditure inequality using social welfare functions book has thus failed to consider different degrees of literature on egalitarianism has addressed issues of equity, largely in relation to individual responsibility.

inequality analysis in app lied microeconomics, in particular the Social Wel fare Function tradition (Kanbur,). Still, causal an alysis of inequality points in a more direct way to. 2 days ago  This article focuses on the welfare state, which includes social protection, health, education and training, housing, and social services, but can also be conceived more broadly to include policies that affect earnings capacity and the structure of the labour market.

It discusses the difficulties of capturing the impact of the welfare state on income inequality, given that one does not observe. 5 The strong correlation that exists between social-insurance spending as a share of GDP and GDP per capita in data sets that include both high-income and low-income countries suggests that richer voters prefer to spend a larger share of income on social insurance; the correlation is documented in Wilensky, Harold, The Welfare State and.

Nanak Kakwani and Hyun Hwa Son make use of social welfare functions to derive indicators of development relevant to specific social objectives, such as poverty- and inequality-reduction.

Arguing that the measurement of development cannot be value-free, the authors assert that if indicators of development are to have policy relevance, they must.

Social welfare can be described by means of a so called “Social Welfare Function” (SWF).5 An attractive definition of SWF, is put forward by Champernowne and Cowell (; 88): «The generic term for coherent and consistent ordering of social states in terms of their desirability is a social-welfare function.

We use the term ‘social. Nazim N. Habibov, Lida Fan, Comparison of inequality reduction and income security in Canada from a mixed to neo-liberal welfare regime: micro-data simulations and policy implications, Journal of Comparative Social Welfare, /, 24, 1, (), ().

Social Welfare Total Income Gini Index Lorenz Curve Social Welfare Function These keywords were added by machine and not by the authors.

This process is experimental and the keywords may be updated as the learning algorithm improves. Nanak Kakwani and Hyu Hwa Son make use of social welfare functions to derive indicators of development relevant to specific social objectives, such as poverty- and inequality-reduction.

Arguing that the measurement of development cannot be value-free, the authors assert that if indicators of development are to have policy relevance, they must. Social spending in its composite form as defined in this study provides a good parameter for measuring the effect of social policy on human development, proxied by our indicators of aggregate welfare.

For the empirical analysis, we use data on social spending from. We will use the model to study the effect of a reduction in trade costs d on social welfare, taking into account the effects of trade liberalization on aggregate income but also on inequality.

As in our previous closed-economy model, we will measure social welfare according to the constant-inequality aversion function in Eq. welfare effort or the level of social protection directly with the different forms of social capital, but rather proceed through a series of intermediary steps.

First, we analyse the statistical dependence between the level of social expenditure, income differences and inequality in a number of welfare states. Trends in income inequality have returned to the center of development policy discussions. In this policy research talk, Aart Kraay will provide new perspectives on these issues, based on his recent paper "Growth, Inequality and Social Welfare: Cross-Country Evidence.".

of long-term inequality and social welfare. Section 4 introduces a new family of rank-dependent EOp measures of inequality and social welfare. Section 5 reports the empirical results, before Section 6 concludes. Long-term equality of opportunity: the order of aggregation To model long-term EOp we can think of two different approaches.

Measuring Inequality Modern Approaches to Inequality and Social Welfare While philosophy may provide but an opaque guide to distributive justice, economists and statisticians have forged ahead with measures of inequality.

We put forth here various ways in which inequality can be measured, how it relates to standard measures of. To help compare different programs, lower and upper bounds are provided for the two components of the distributional terms. Sensitivity analysis with respect to alternative formulations of the social welfare function is performed by using the (extended) Gini income elasticity.

The framework is applied to data for three Latin American countries. Welfare for the Wealthy re-examines this relationship by evaluating how political party power results in changes to both public social spending and subsidies for private welfare - and how a trade-off between the two, in turn, affects income inequality.

The EU-SPS programme held a tailor-made training course on monitoring and evalution for social protection systems for the Ministry of Women, Children and Social Action (MGCAS), the Institute for Women, Children and Social Action (INAS) and the National Institute for Statistics (INE) in Maputo, Mozambique in February   By simultaneously incorporating inequality concerns, average gains and inequality impacts, health-related social welfare functions can evaluate policies that include trade-offs between inequality and average health impacts (i.e.

where both inequality between groups and average population health increases or where both reduce). As well as the positive impact of public spending on improving the living standards of citizens, higher social welfare spending is also associated with lower economic inequalities (Sen, ; Korpi & Palme, ; Burgoon, ).

That is, an increase in public spending for education, health, and other redistributive welfare policies will allow. Downloadable. In this paper, we introduce and apply a general framework for evaluating long-term income distributions according to the Equality of Opportunity principle.

Our framework allows for both an exante and an ex-post approach to EOp. Our ex-post approach relies on a permanent income measure defined as the minimum annual expenditure an individual would need in order to be as well off as.

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The evidence for the effect of social inequality on population health and mortality is compelling. In virtually every Western industrialized nation there is a gradient between social class. To utilitarians, controlling for the average income, increasing income inequality reduces social welfare simply because the same dollar has lower marginal utility for the rich than for the poor.

But in this essay I am mainly concerned with the effects of inequality on efficiency and socioeconomic performance in general. Effects on social welfare. In most western democracies, the desire to eliminate or reduce economic inequality is generally associated with the political left. One practical argument in favor of reduction is the idea that economic inequality reduces social cohesion and increases social.

the contribution of changes in inequality, to growth in social welfare, for a wide variety of social welfare functions. Our main findings are easily summarized.

For all of the social welfare functions we consider, social welfare on average increases equiproportionately with increases in average incomes.This chapter begins by re-evaluating the reasons one might have to expect that some welfare states regimes, and especially the Nordic ones, can be expected to influence inequalities in population health.

It then examines whether the expected effects of welfare state regimes are observed in recent research on inequalities in health.

It reviews the empirical evidence brought forward by recent. A little notation is helpful in order to summarize this decomposition. Let μ denote average income, and I denote an inequality measure that is bounded between zero and one, as will be the case for the inequality measures associated with the social welfare functions that we consider.

Social welfare can be expressed as W = μ (1 − I), that is, social welfare is higher if average incomes are.