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Effect of Social Spending on Income Concentration: A Post-Keynesian Long-Term Perspective

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  4. Vol. 69, Issue 1
  5. pp. 11–23

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Vaca, J. Effect of Social Spending on Income Concentration: A Post-Keynesian Long-Term Perspective. Applied Economics Quarterly, 69(1), 11-23. https://doi.org/10.3790/aeq.2023.1467402
Vaca, Jesus "Effect of Social Spending on Income Concentration: A Post-Keynesian Long-Term Perspective" Applied Economics Quarterly 69.1, 2023, 11-23. https://doi.org/10.3790/aeq.2023.1467402
Vaca, Jesus (2023): Effect of Social Spending on Income Concentration: A Post-Keynesian Long-Term Perspective, in: Applied Economics Quarterly, vol. 69, iss. 1, 11-23, [online] https://doi.org/10.3790/aeq.2023.1467402
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Effect of Social Spending on Income Concentration: A Post-Keynesian Long-Term Perspective

Vaca, Jesus

Applied Economics Quarterly, Vol. 69(2023), Iss. 1 : pp. 11–23 | First published online: December 18, 2025

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Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/aeq.2023.1467402
Language
German
Pages
13
Keywords

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Author Details

Professor in the Department of Administration at the University Center for Administration (CUCEA) of the University of Guadalajara, Av. Juárez 976, Col. Centro, Guadalajara, Jalisco, Mexico, 44100.

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Abstract

Effect of Social Spending on Income Concentration: A Post-Keynesian Long-Term Perspective

In the literature, there is a widespread consensus regarding the negative relationship between public spending and inequality. However, there is a lack of studies addressing this relationship from a long-term perspective. This becomes particularly relevant in a context where social public spending has seen an increase in recent years, coinciding with a rise in income concentration. Employing a post-Keynesian approach that analyzes concentration from a functional rather than personal perspective, an econometric model with an endogenous structure was implemented using data from 62 countries. The results suggest that social public spending, as a redistributive policy tool, is not sufficient to alleviate inequalities in the long term. A positive long-term relationship is observed between social public spending and income concentration of the capitalist class, ranging between 0.10 and 0.17 percentage points. However, it is important to note that this relationship is more robust in OECD countries than in non-OECD countries.

Table of Contents

Section Title Page Action Price
Jesus Vaca: Effect of Social Spending on Income Concentration: A Post-Keynesian Long-Term Perspective 11
Abstract 11
1. Introduction 11
2. Literature Review 13
3. Methodology and Results 17
4. Conclusions 21
References 22

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