Empirical Determinants of In-kind Redistribution : Partisan Biases and the Role of Inflation

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Hessami_0-274378.pdf
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2012
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Uebelmesser, Silke
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This paper investigates how government ideology and inflation affect the government’s choice between cash transfers and in-kind transfers. Our hypotheses are based on three observations: (i) in-kind transfers create stigma, (ii) but make recipients less vulnerable to inflation; (iii) poor benefit recipients make up the core constituency of left-wing parties. Using dynamic panel data estimations for 32 OECD countries over the time period from 1980 to 2007, we provide evidence that the in-kind share of social benefits is lower under left-wing governments. This partisan bias is weakened when left-wing governments respond to inflation by increasing the share of in-kind transfers.

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Fachgebiet (DDC)
330 Wirtschaft
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In-kind redistribution; social benefits; partisan biases; inflation
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ISO 690HESSAMI, Zohal, Silke UEBELMESSER, 2012. Empirical Determinants of In-kind Redistribution : Partisan Biases and the Role of Inflation
BibTex
@techreport{Hessami2012Empir-29956,
  year={2012},
  series={Working Paper Series / Department of Economics},
  title={Empirical Determinants of In-kind Redistribution : Partisan Biases and the Role of Inflation},
  number={2012‐20},
  author={Hessami, Zohal and Uebelmesser, Silke}
}
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