Abstract
The efficiency of spending needs to be evaluated in terms of some clearly specified social objectives that it is meant to achieve. In the context of social protection spending, these social objectives are typically expressed in terms of reducing income poverty or income inequality. This chapter sets out a standard social welfare framework that supports such an evaluation and reviews the conceptual and empirical issues that need to be addressed when evaluating the efficiency of social protection spending. To help illustrate these issues, the framework is applied to EUROMOD country-level data on the distribution of social assistance transfers across household income groups. This analysis also provides a basis for determining how one should move from an empirical analysis of spending efficiency to discussing policy implications.
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