Impulse and time persistence of disaggregate welfare expenditure on growth in the EU

Economia Politica - Tập 37 - Trang 13-38 - 2019
Alessandro Crociata1, Massimiliano Agovino2, Donatella Furia3, Giacomo Osmi3, Nicola Mattoscio2, Massimiliano Cerciello2
1Gran Sasso Science Institute (GSSI), L’Aquila, Italy
2Department of Economic and Legal Studies, University of Naples “Parthenope”, Naples, Italy
3Department of Philosophical, Pedagogical and Economic-Quantitative Sciences, University “G. D’Annunzio” of Chieti-Pescara, Pescara, Italy

Tóm tắt

In a post-industrial and globalised world, assessing the impact of Welfare State Expenditure (WSE) on economic growth has become an issue of growing interest. The debate is still open in the literature, as no consensus has currently been achieved. We argue that disaggregating WSE, the positive/negative performance dichotomy of welfare policies may be overcome. Departing from this intuition, we apply PVAR techniques in order to investigate the endogenous interactions between economic growth (proxied by GDP) and WSE, measured as single social expenditure items, using data gathered from the European System of Integrated Social Protection Statistics. Our results confirm both the positive and the negative impact of WSE on growth. Moreover, we show the existence of the different impulse responses and time persistence patterns for disaggregated WSE items. Our results imply that further research should take into account the composition of WSE in addition to its extent.

Tài liệu tham khảo

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