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The drift of public spending towards the elderly: A generational analysis of the trend of public policies in Spain

Guillem López Casasnovas and Ana Mosterin

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: The tendency for public welfare spending to be increasingly aimed at the elderly has been pointed out for the US and other developed countries. While population ageing is a common trend, it is not obvious why the shift in spending exceeds the trend in ageing, or why per capita spending on the elderly increases. We show that this is the case in Spain, identify the losers from this development, discuss the policies that underlie this trend, and propose adjustments based on Musgrave’s fixed proportions rule as an inter-generationally fair distribution.

Keywords: Intergenerational equity; Musgrave’s rule; Spanish social policy and ageing (search for similar items in EconPapers)
JEL-codes: I32 I38 H53 H55 J14 (search for similar items in EconPapers)
Date: 2007-10
New Economics Papers: this item is included in nep-age and nep-eec
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