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Quality of Government and Subjective Poverty in Europe

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  • Massimo Baldini
  • Vito Peragine
  • Luca Silvestri

Abstract

We study the effect of quality of government on subjective poverty across European countries and regions, taking advantage of recently released data on the quality of public institutions and of information on household subjective poverty, at the subnational level. In the analysis we separate the effects of quantity and quality of public services on perceived well-being, controlling for the size of the local government and for the quantity of in-kind services received by each household of the sample. Results suggest that good governance significantly reduces the probability of being subjectively poor, both over the whole population and also among households that are poor in terms of monetary income. We then estimate the greater cost that a family has to bear to achieve a given level of welfare, if it lives in a region with inefficient public institutions. Our measure of this inefficiency cost is around 6% of disposable income.

Suggested Citation

  • Massimo Baldini & Vito Peragine & Luca Silvestri, 2018. "Quality of Government and Subjective Poverty in Europe," CESifo Economic Studies, CESifo Group, vol. 64(3), pages 371-395.
    • Handle: RePEc:oup:cesifo:v:64:y:2018:i:3:p:371-395.
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifx023
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    Cited by:

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    2. Giampaolo Arachi & Michele G Giuranno & Paola Profeta, 2018. "Introduction to the Special Issue ‘Inequality and Public Policies’, CESifo Economic Studies 2018," CESifo Economic Studies, CESifo Group, vol. 64(3), pages 339-344.
    3. Chenhong Peng & Paul S. F. Yip & Yik Wa Law, 2020. "What Factors Beyond Economic Poverty Lead People in High-income Societies to Feel Poor? Evidence from Hong Kong," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(3), pages 991-1027, December.
    4. Marenzi, Anna & Rizzi, Dino & Zanette, Michele & Zantomio, Francesca, 2023. "Regional institutional quality and territorial equity in LTC provision," The Journal of the Economics of Ageing, Elsevier, vol. 26(C).
    5. Marenzi, A.; & Rizzi, D.; & Zanette, M.; & Zantomio, F.;, 2022. "Regional Institutional Quality and Territorial Equity in LTC Provision," Health, Econometrics and Data Group (HEDG) Working Papers 22/27, HEDG, c/o Department of Economics, University of York.
    6. Achille Lemmi & Donatella Grassi & Alessandra Masi & Nicoletta Pannuzi & Andrea Regoli, 2019. "Methodological Choices and Data Quality Issues for Official Poverty Measures: Evidences from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 299-330, January.
    7. Chenhong Peng, 2023. "Household Consumption and the Discrepancy Between Economic and Subjective Poverty: The Mediating Roles of Perceived Social Status and Social Connectedness," Journal of Happiness Studies, Springer, vol. 24(5), pages 1703-1727, June.
    8. Raja Qaiser Ahmed & Maryum Tamoor & Muhammad Waqas Saleem & Summar Iqbal Babar, 2022. "Chosen trauma and saffronization of India," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 25(1), pages 36-49, March.
    9. Chenhong Peng & Yik-Wa Law, 2023. "How Do Consumption Patterns Influence the Discrepancy Between Economic and Subjective Poverty?," Journal of Happiness Studies, Springer, vol. 24(4), pages 1579-1604, April.

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    More about this item

    Keywords

    quality of government; subjective poverty; minimum income; European regions; poverty line;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • H1 - Public Economics - - Structure and Scope of Government
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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