Welfare programs and the state economy

Bruce D. McDonald and D. Ryan Miller

Journal of Policy Modeling, 2010, vol. 32, issue 6, 719-732

Abstract: Welfare policy has been controversial and support is often drawn along political affiliation lines, the economic return of investment in welfare programs is frequently cited as a justification for new and expanded policies. To investigate the direct and indirect effects of welfare programs on economic performance, the authors develop a multilink approach, through employment and investment. The relationship is then tested with data from each of the United States from 1976 to 2006. Findings show welfare programs have no direct effect on a state's economy. Indirectly, welfare has a negative effect through investment, though the effect on employment is minimal.

Keywords: Welfare; policy; Economic; growth; Employment; Investment; Multilink; approach (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:32:y::i:6:p:719-732

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