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Regional welfare weights for the UK: England, Scotland, Wales and Northern Ireland

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  • D. Evans
  • E. Kula
  • H. Sezer

Abstract

Evans D., Kula E. and Sezer H. (2005) Regional welfare weights for the UK: England, Scotland, Wales and Northern Ireland, Regional Studies 39 , 923-937. In relation to public spending and regional policy, the importance of distributional issues is stressed, and regional welfare weights are derived from an appropriate underlying social welfare function. Estimates of these weights are then provided for the four countries comprising the UK. Welfare weights now have a very high policy profile following the special emphasis placed by the UK Treasury, in its recently revised guidance on appraisal and evaluation in government, on the assessment of the distributional impacts of social projects and policies. From an empirical perspective, the critical component of each welfare weight measure is the elasticity of marginal utility of income ( e ). Alternative estimation approaches based on demand analysis and income tax data are used to determine e , and a preferred measure of 1.60 emerges. The resulting regional welfare weights are then compared with recent patterns of per-capita regional public expenditure in the UK. The paper concludes by emphasizing the scope for further empirical work on welfare weights and regional policy in relation to both the UK and the European Union.

Suggested Citation

  • D. Evans & E. Kula & H. Sezer, 2005. "Regional welfare weights for the UK: England, Scotland, Wales and Northern Ireland," Regional Studies, Taylor & Francis Journals, vol. 39(7), pages 923-937.
    • Handle: RePEc:taf:regstd:v:39:y:2005:i:7:p:923-937
    DOI: 10.1080/00343400500289937
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    References listed on IDEAS

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    5. Neal Blue, E. & Tweeten, Luther, 1997. "The estimation of marginal utility of income for application to agricultural policy analysis," Agricultural Economics, Blackwell, vol. 16(3), pages 155-169, August.
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    Citations

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    Cited by:

    1. Massimo Florio & Emanuela Sirtori, 2013. "The social cost of capital: recent estimates for the EU countries," Working Papers 201303, CSIL Centre for Industrial Studies.
    2. Swales, J. Kim, 2008. "The Relative Efficiency of Automatic and Discretionary Industrial Aid," SIRE Discussion Papers 2008-50, Scottish Institute for Research in Economics (SIRE).
    3. Erhun KULA, 2006. "Regional welfare weights," Departmental Working Papers 2006-32, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Stellio Del Campo & David Anthoff & Ulrike Kornek, 2024. "Inequality Aversion for Climate Policy," Review of Environmental Economics and Policy, University of Chicago Press, vol. 18(1), pages 96-115.
    5. Paul Dolan & Tessa Peasgood, 2008. "Measuring Well-Being for Public Policy: Preferences or Experiences?," The Journal of Legal Studies, University of Chicago Press, vol. 37(S2), pages 5-31, June.
    6. David EVANS & Erhun KULA, 2009. "Social discount rates and welfare weights for public investment decisions under budgetary restrictions – the case of Cyprus," Departmental Working Papers 2009-19, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    7. Ben Groom & David Maddison Pr., 2019. "New Estimates of the Elasticity of Marginal Utility for the UK," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 1155-1182, April.
    8. Mareike Schad & Jürgen John, 2012. "Towards a social discount rate for the economic evaluation of health technologies in Germany: an exploratory analysis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(2), pages 127-144, April.
    9. David J. EVANS, 2006. "Social discount rates for the European Union," Departmental Working Papers 2006-20, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

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    More about this item

    Keywords

    Welfare weights; Marginal utility; UK; Ponderations relatives a la protection sociale; Utlilite marginale; Royaume-Uni; Wohlfahrtslasten; Grenznutzung; UK; Indices de bienestar social; Marginal de los ingresos; Reino Unido; JEL classifications: D60; D61; R10;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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