IDEAS home Printed from https://ideas.repec.org/a/prg/jnlcfu/v2014y2014i2id397p92-105.html
   My bibliography  Save this article

Cost of Service Approach to the Measurement of Public Expenditure Incidence
[Nákladový přístup k měření dopadu veřejných výdajů]

Author

Listed:
  • Barbora Slintáková

Abstract

Research on public expenditure incidence is not as extensive as the tax incidence study even though it is important as well. The problem of the public expenditure incidence is identification of individuals on whose behalf public expenditures are made and calculation of their benefits. There are two ways how to approach to this problem. The behavioural approach is theoretically pure but it is very demanding for data. That is why the benefits are approximated with budget amounts in the cost of service approach. This paper distinguishes this approach from the behavioural one and describes its limitations. Then it provides details about the procedure of incidence analysis applied on the state budget expenditures in the Czech Republic. To determine which households benefited - and how much - from the state budget expenditures a microsimulation model was developed using the Household Budget Survey sample. Results show that lower-income households received larger benefits from the state budget expenditures in the given year than higher-income households on an annual basis.

Suggested Citation

  • Barbora Slintáková, 2014. "Cost of Service Approach to the Measurement of Public Expenditure Incidence [Nákladový přístup k měření dopadu veřejných výdajů]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2014(2), pages 92-105.
    • Handle: RePEc:prg:jnlcfu:v:2014:y:2014:i:2:id:397:p:92-105
    DOI: 10.18267/j.cfuc.397
    as

    Download full text from publisher

    File URL: http://cfuc.vse.cz/doi/10.18267/j.cfuc.397.html
    Download Restriction: free of charge
    File URL: http://cfuc.vse.cz/doi/10.18267/j.cfuc.397.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.cfuc.397?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Haizhen Mou & Stanley L. Winer, 2010. "Fiscal Incidence When Both Individual Welfare and Family Structure Matter: The Case of Subsidization of Home -care for the Elderly," ICER Working Papers 15-2010, ICER - International Centre for Economic Research.
    2. Martinez-Vazquez, Jorge, 1982. "Fiscal Incidence at the Local Level," Econometrica, Econometric Society, vol. 50(5), pages 1207-1218, September.
    3. Peter Lambert & Thor Thoresen & Runa Nesbakken, 2010. "On the Meaning and Measurement of Redistribution in Cross-Country Comparisons," LIS Working papers 532, LIS Cross-National Data Center in Luxembourg.
    4. Aaron, Henry & McGuire, Martin, 1970. "Public Goods and Income Distribution," Econometrica, Econometric Society, vol. 38(6), pages 907-920, November.
    5. Ondřej Schneider & Tomáš Jelínek, 2005. "Distributive Impact of Czech Social Security and Tax Systems: Dynamics in Early 2000s," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(3), pages 221-237.
    6. Selden, Thomas M. & Wasylenko, Michael J., 1992. "Benefit incidence analysis in developing countries," Policy Research Working Paper Series 1015, The World Bank.
    7. Menchik, Paul L., 1991. "The Distribution of Federal Expenditures," National Tax Journal, National Tax Association;National Tax Journal, vol. 44(3), pages 269-276, September.
    8. Edward N. Wolff & Ajit Zacharias, 2006. "An Overall Assessment of the Distributional Consequences of Government Spending and Taxation in the United States, 1989 and 2000," Palgrave Macmillan Books, in: Dimitri B. Papadimitriou (ed.), The Distributional Effects of Government Spending and Taxation, chapter 2, pages 15-68, Palgrave Macmillan.
    9. Maital, Shlomo, 1973. "Public Goods and Income Distribution: Some Further Results," Econometrica, Econometric Society, vol. 41(3), pages 561-568, May.
    10. Nora Lustig & Carola Pessino & John Scott, 2013. "The Impact of Taxes and Social Spending on Inequality and Poverty in Argentina, Bolivia, Brazil, Mexico, Peru and Uruguay: An Overview," Working Papers 1313, Tulane University, Department of Economics.
    11. Edward N. Wolff & Ajit Zacharias, 2007. "The Distributional Consequences Of Government Spending And Taxation In The U.S., 1989 And 2000," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(4), pages 692-715, December.
    12. Menchik, Paul L., 1991. "The Distribution of Federal Expenditures," National Tax Journal, National Tax Association, vol. 44(3), pages 269-76, September.
    13. Udo Ebert & Georg Tillmann, 2006. "Budget Incidence Reconsidered," Journal of Economics, Springer, vol. 88(1), pages 1-19, June.
    14. repec:bla:revinw:v:27:y:1981:i:2:p:137-64 is not listed on IDEAS
    15. Nora Lustig & Florencia Amábile & Marisa Bucheli & George Gray Molina & Sean Higgins & Miguel Jaramillo & Wilson Jiménez Pozo & Veronica Paz Arauco & Claudiney Pereira & Carola Pessino & Máximo Rossi , 2013. "The impact of taxes and social spending on inequality and poverty in Argentina, Bolivia, Brazil, Mexico, Peru, and Uruguay," Commitment to Equity (CEQ) Working Paper Series 13, Tulane University, Department of Economics, revised Aug 2013.
    16. Michael O'Higgins & Patricia Ruggles, 1981. "The Distribution Of Public Expenditures And Taxes Among Households In The United Kingdom," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 27(3), pages 298-326, September.
    17. Brennan, Geoffrey, 1976. "The Distributional Implications of Public Goods," Econometrica, Econometric Society, vol. 44(2), pages 391-399, March.
    18. Piggott, John & Whalley, John, 1987. "Interpreting Net Fiscal Incidence Calculations," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 685-694, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cormac O'Dea & Ian Preston, 2012. "The distributional impact of public spending in the UK," IFS Working Papers W12/06, Institute for Fiscal Studies.
    2. Kaplow, Louis, 2006. "Public goods and the distribution of income," European Economic Review, Elsevier, vol. 50(7), pages 1627-1660, October.
    3. Hines Jr., James R., 2000. "What is benefit taxation?," Journal of Public Economics, Elsevier, vol. 75(3), pages 483-492, March.
    4. Richard D. Raymond & Michael Sesnowitz, 1980. "The Distributional Impact of Public Goods," Public Finance Review, , vol. 8(4), pages 397-426, October.
    5. Udo Ebert, 2003. "Environmental Goods and the Distribution of Income," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(4), pages 435-459, August.
    6. Jorge Martinez-Vazquez, 2001. "The Impact of Budgets on the Poor: Tax and Benefit," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0110, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    7. Jorge Martinez-Vazquez, 2007. "Budget Policy and Income Distribution," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0707, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    8. Alari Paulus & Holly Sutherland & Panos Tsakloglou, 2010. "The distributional impact of in-kind public benefits in European countries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 243-266.
    9. Selden, Thomas M. & Wasylenko, Michael J., 1992. "Benefit incidence analysis in developing countries," Policy Research Working Paper Series 1015, The World Bank.
    10. Haizhen Mou & Stanley L. Winer, 2010. "Fiscal Incidence When Both Individual Welfare and Family Structure Matter: The Case of Subsidization of Home -care for the Elderly," ICER Working Papers 15-2010, ICER - International Centre for Economic Research.
    11. Geoffrey Philpotts, 1986. "Public Good Benefit Attribution," Public Finance Review, , vol. 14(3), pages 313-328, July.
    12. Daniel P. Hewitt, 1987. "The Benefit Incidence of Consumption Public Goods," Public Finance Review, , vol. 15(2), pages 138-165, April.
    13. Nora Lustig & Florencia Amábile & Marisa Bucheli & George Gray Molina & Sean Higgins & Miguel Jaramillo & Wilson Jiménez Pozo & Veronica Paz Arauco & Claudiney Pereira & Carola Pessino & Máximo Rossi , 2014. "El impacto del sistema tributario y del gasto social sobre la desigualdad y la pobreza en Argentina, Bolivia, Brasil, México, Perú y Uruguay: Un panorama general," Commitment to Equity (CEQ) Working Paper Series 1313S, Tulane University, Department of Economics.
    14. Wolfgang Buchholz & Wolfgang Peters, 2007. "Justifying the Lindahl solution as an outcome of fair cooperation," Public Choice, Springer, vol. 133(1), pages 157-169, October.
    15. Kalle Hirvonen & Giulia Mascagni & Keetie Roelen, 2018. "Linking taxation and social protection: Evidence on redistribution and poverty reduction in Ethiopia," International Social Security Review, John Wiley & Sons, vol. 71(1), pages 3-24, January.
    16. Cont, Walter & Porto, Alberto, 2014. "Personal and regional redistribution through public finance in a federal setting," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(4), pages 563-578.
    17. Cornia, Giovanni Andrea, 2014. "Income inequality in Latin America. Recent decline and prospects for its further reduction," Macroeconomía del Desarrollo 36852, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    18. Haizhen Mou & Stanley L. Winer, 2015. "Fiscal Incidence When Family Structure Matters," Public Finance Review, , vol. 43(3), pages 373-401, May.
    19. Eskeland, Gunnar*Chingying Kong, 1998. "Protecting the environment and the poor - a public goods framework applied to Indonesia," Policy Research Working Paper Series 1961, The World Bank.
    20. Mónica Patricia Ospina, 2014. "El efecto del gasto social en la distribución del ingreso: un análisis para economías latinoamericanas," Revista Ciencias Estratégicas, Universidad Pontificia Bolivariana, December.

    More about this item

    Keywords

    Benefit incidence analysis; Fiscal incidence; Public expenditure; Analýza incidence veřejných výdajů; Fiskální dopad; Veřejné výdaje;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlcfu:v:2014:y:2014:i:2:id:397:p:92-105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.