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Evaluating the efficiency of social protection spending

In: Handbook on Public Sector Efficiency

Author

Listed:
  • David Coady
  • Samir Jahan

Abstract

The efficiency of spending needs to be evaluated in terms of some clearly specified social objectives that it is meant to achieve. In the context of social protection spending, these social objectives are typically expressed in terms of reducing income poverty or income inequality. This chapter sets out a standard social welfare framework that supports such an evaluation and reviews the conceptual and empirical issues that need to be addressed when evaluating the efficiency of social protection spending. To help illustrate these issues, the framework is applied to EUROMOD country-level data on the distribution of social assistance transfers across household income groups. This analysis also provides a basis for determining how one should move from an empirical analysis of spending efficiency to discussing policy implications.

Suggested Citation

  • David Coady & Samir Jahan, 2023. "Evaluating the efficiency of social protection spending," Chapters, in: António Afonso & João Tovar Jalles & Ana Venâncio (ed.), Handbook on Public Sector Efficiency, chapter 14, pages 313-336, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19879_14
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