Income distribution determinants and public spending efficiency

Author: Afonso António   Schuknecht Ludger   Tanzi Vito  

Publisher: Springer Publishing Company

ISSN: 1569-1721

Source: The Journal of Economic Inequality, Vol.8, Iss.3, 2010-09, pp. : 367-389

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Abstract

This paper examines the impact of public spending on income distribution in OECD countries, paying attention in particular to the impact of the quality of education and public institutions. The paper assesses the efficiency of public spending in improving income distribution by using Data Envelopment Analysis. The empirical analysis shows the existence of both input and output inefficiencies across countries when relating public social spending to the inequality in income distribution.