Social Dominance

Arbeitspapier

Based on the observation of an unabated trend towards higher social spending ratios in advanced countries, the study analyzes the risk of “social dominance”, where social expenditures dominate fiscal policy, and undermine growth and fiscal sustainability. We scrutinize this risk by analyzing drivers of social expenditures and their interaction with other fiscal variables. Results show, that social expenditure expansion is largely ageing driven, it crowds out other primary expenditures and there is evidence of unsustainability. These findings and the accelerating trend of population ageing and particularly high political costs to reforming social expenditure suggest significant and rising risks of “social dominance".

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 6894

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy ; Fiscal Policies and Behavior of Economic Agents: General ; Social Security and Public Pensions
• Subject: fiscal policy ; social expenditures ; political economy ; crowding out ; fiscal sustainability

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schuknecht, Ludger ; Zemanek, Holger
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/176913
• Last update: 10.03.2025, 11:43 AM CET