How does public spending affect technical efficiency? Some evidence from 15 European countries

The relationship between government size and economic growth has been widely debated. Revisiting the subject from a distinct angle with respect to the mainstream approach, we provide an empirical analysis of the impact of government size on technical efficiency. The aim of this paper is to estimate the impact of public sector's size and of public expenditure components on 15 European countries\u2019 technical efficiency from 1996 to 2014 by using a True Random Effect model. Using the total public expenditure as a proxy for the government size we estimate simultaneously national optimal production function and technical efficiency by controlling for income distribution and institutional quality. Our main findings show that the effect of public sector's size on efficiency is positive while the type of public expenditures may have both positive and negative impact. In more details, results suggest that education and health expenditures have a positive effect on technical efficiency, while others have a negative impact

Does cutting back the public sector improve efficiency? Some evidence from 15 European countries

The successful development of the welfare state that transpired for three decades after WWII in the developed countries, came to a halt around the end of the 1980s. Since then, the number of articles and books dedicated to the crisis of the welfare state has increased. We can now assert that at the turn of the century, almost all industrialized countries had cut at least “some” entitlements in their welfare program along with other expenditure items, and the trend continued in the first decade of this century. To defend the cuts and possibly to justify continuing cuts, several economic reasons, both theoretical and empirical, have been highlighted. From mention of Baumol’s disease to the fiscal crisis, the support for making such decisions by governments gained momentum, with their political inspiration changing during the same period in favor of more conservative, right-wing positions. The low productivity of the public sector and the high level of tax burden were the substantial arguments used to support cuts. The aim of this paper is to provide an empirical investigation into the impact of retrenchment of the public sector on the performance of 15 European countries. In particular, we aim to empirically test the view that “big government” reduces a country's efficiency. We have found that no such empirical support exists. We have also included analysis of the distribution of income through the Gini index and have found the standard trade-off relation between inequality and efficiency

What forces children away from home? Evidence from Uganda

Child mobility is a significant phenomenon all over the world and is especially prominent in developing countries, where it is made worse by income conditions in rural households. The aim of this paper is to advance a step forward in the quantitative investigation of factors driving rural households’ decisions to send children away from home. Using Ugandan panel data to account for household unobserved heterogeneity, we find that the presence of a female household head as well as her/his age, the presence of a female household head, a higher number of children, marital status, and the circumstance of mother not living in the household increase the likelihood of sending away children. On the other hand, other factors such as education and mobile phone ownership does not seem to play a role

Integrating hydrogeological and economic analyses of groundwater flooding in an urban aquifer: the plain of Naples (Italy) as a case study

The study applies the defensive expenditure approach via hydrogeological data for a sector of the plain of Naples to value the economic damages produced by groundwater flooding on private properties. It follows from the integrated analysis that the value of the economic damages is increasing over time at a compound pace. The over-pumping of groundwater during the industrialisation period, and its stop in the subsequent de-industrialisation one, impaired the long-run natural equilibrium of the groundwater resources. Thus, the myopic decisions taken with respect to land and groundwater use, and a short-sight urban design planning have caused increasing economic costs in the medium and long terms

Intrauterine death: an approach to the analysis of genetic heterogeneity.

A study of survival time of zygotes in utero and the relationship with parental phenotype of a series of genetic polymorphisms was carried out in 41 couples with habitual abortion. Variability of intrauterine survival time was found to be much higher between families than within families suggesting that several genetic entities contribute to the condition clinically defined as habitual abortion. Significant differences of survival time were found in relation to the length of the paternal Y chromosome and to the maternal phenotypes of PGM1 and Ss. These observations are in line with previous data suggesting intrauterine selection in these polymorphisms. Further studies of the timing of intrauterine death in relation to 'normal' genetic polymorphisms may help to clarify the aetiology of spontaneous fetal loss

Intrauterine death: an approach to the analysis of genetic heterogeneity.

A study of survival time of zygotes in utero and the relationship with parental phenotype of a series of genetic polymorphisms was carried out in 41 couples with habitual abortion. Variability of intrauterine survival time was found to be much higher between families than within families suggesting that several genetic entities contribute to the condition clinically defined as habitual abortion. Significant differences of survival time were found in relation to the length of the paternal Y chromosome and to the maternal phenotypes of PGM1 and Ss. These observations are in line with previous data suggesting intrauterine selection in these polymorphisms. Further studies of the timing of intrauterine death in relation to 'normal' genetic polymorphisms may help to clarify the aetiology of spontaneous fetal loss