After the 2007 financial crisis, some Eurozone countries were subject to adjustment programs, whose main content was the reduction of public expenditure in its structural component. The aim of the paper is to examine, through an error correction dynamic panel data technique, the relationship between structural public balance adjustment and poverty in selected Eurozone countries in the period from 2005 to 2015. The results suggest that restrictive measures increase poverty and social exclusion while expansive measure decrease it, either when considering the population as a whole or when considering men and women separately. The introduction of additional variables considered to be relevant for poverty into the empirical model does not change the main conclusions of the paper. The objective of sound public finance seems to be gained at the expense of a higher number of people living in poverty.

Structural public balance adjustment and poverty in Europe

Giorgio Liotti;Canale Rosaria Rita;Marani Ugo
2019

Abstract

After the 2007 financial crisis, some Eurozone countries were subject to adjustment programs, whose main content was the reduction of public expenditure in its structural component. The aim of the paper is to examine, through an error correction dynamic panel data technique, the relationship between structural public balance adjustment and poverty in selected Eurozone countries in the period from 2005 to 2015. The results suggest that restrictive measures increase poverty and social exclusion while expansive measure decrease it, either when considering the population as a whole or when considering men and women separately. The introduction of additional variables considered to be relevant for poverty into the empirical model does not change the main conclusions of the paper. The objective of sound public finance seems to be gained at the expense of a higher number of people living in poverty.
File in questo prodotto:
File Dimensione Formato  
Structural public balance adjustment and poverty in Europe (2).pdf

non disponibili

Tipologia: Documento in Post-print
Licenza: Accesso privato/ristretto
Dimensione 710.34 kB
Formato Adobe PDF
710.34 kB Adobe PDF   Visualizza/Apri   Richiedi una copia
Structural public balance adjustment and poverty in Europe (2).pdf

non disponibili

Tipologia: Documento in Post-print
Licenza: Accesso privato/ristretto
Dimensione 710.34 kB
Formato Adobe PDF
710.34 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11588/756365
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 4
  • ???jsp.display-item.citation.isi??? 5
social impact