An Analysis of Italian Regional Social Expenditure on Disability and Other Social Measures: A Spatial Econometric Approach

Abstract

The aim of this work is to implement a convergence analysis of social expenditure on disability and other social measures (e.g. families and children, disabled people, substances, old age, immigrants and nomadic people, poverty adult problems and homelessness, multineeds, total), taking into account spatial effects. To this purpose, we develop a two-step analysis focusing on Italian regional data for the period 2003–2008. In the first phase, we perform a descriptive analysis and a joint application of a measure of inequality and of the degree of spatial autocorrelation. We subsequently apply the beta and sigma convergence analysis to per capita expenses on social issues, with special emphasis on expenses on disability, broadly defined. The results show that Italian regions do tend to converge in total, and also specific items of per capita social expenditures. In addition, we observe that the discrepancy among per capita expenditures for social actions and services have not been reduced over time, and that spatial effects differ according to the various types of social expenses. Policy considerations are discussed.