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http://hdl.handle.net/10419/18265
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| Title: | | To aid, insure, transfer, or control : what drives the welfare state?  |
| Authors: | | Castronova, Edward |
| Issue Date: | | 2002 |
| Series/Report no.: | | DIW-Diskussionspapiere 281 |
| Abstract: | | The paper uses panel data on OECD countries to assess four theories about the forces that generate social spending. The four theories are: Aid: the Welfare State is about helping the poor. Insure: the Welfare State insures the consumption of middle-class voters. Transfer: the Welfare State transfers money to politically-powerful entitled groups. Control: the Welfare State is about controlling the behavior of the underclass. The data give the following grades: Aid D-, Insure C+, Transfer A-, Control D. This assessment is made by regressing the share of social spending in GDP on a vector of country characteristics. The methods involve simultaneous equation fixed-effects models, and they take advantage of some recent innovations in the growth literature involving the treatment of country-level panel data |
| JEL: | | H5 I3 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
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