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Quality of government and subjective poverty in Europe

Massimo Baldini (), Vito Peragine () and Luca Silvestri ()

Center for the Analysis of Public Policies (CAPP) from Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi"

Abstract: We study the effect of quality of government on subjective poverty across European countries and regions, taking advantage of recently released data on the quality of public institutions at the regional level, and of information on household subjective poverty. In the analysis we try to separate the effects of quantity and quality of public services on perceived well-being, controlling for the size of the local government and for the receipt of in-kind services by each household of the sample. Results suggest that good governance significantly reduces the probability of being subjectively poor, both over the whole population and also among households that are poor in terms of monetary income. We then estimate the greater cost that a family has to bear in order to achieve a given level of welfare, if it lives in a region with inefficient public institutions. Our measure of this inefficiency cost is around 6% of disposable income.

Keywords: Quality of government; subjective poverty; minimum income; European regions; poverty line (search for similar items in EconPapers)
JEL-codes: I32 H1 H7 (search for similar items in EconPapers)
Pages: pages 24
Date: 2017-01
New Economics Papers: this item is included in nep-eur, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

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Journal Article: Quality of Government and Subjective Poverty in Europe (2018) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:mod:cappmo:0149

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