Question: (25 points) The OECD Social Expenditure Database (SOCX) has been devel- oped in order to serve a growing need for indicators of social policy.


(25 points) The OECD Social Expenditure Database (SOCX) has been devel- oped in order to serve a growing need for indicators of social policy. It includes reliable and internationally comparable statistics on public and (mandatory and voluntary) private social expenditure at programme level as well as net so- cial spending indicators. See: https://www.oecd.org/els/soc/expenditure.htm On the other hand, the World Development Indicators (WDI) is the pri- mary World Bank collection of development indicators (including different poverty measures), compiled from officially recognized international sources. It presents the most current global development data available. See http://databank.worldbank.org/. (c) For the list of countries in SOCX, get and merge data on the Poverty Headcount Ratio and the Poverty Gap (at US$2.15 a day, 2017 PPP) from WDI. (c.1) Plot public social expenditure (as % of GPD) as function of the Poverty GDP Gap. Do you find a positive association? (c.1) Plot public social expenditure (as % of GPD) as function of the Poverty GDP Headcount Ratio. Do you find a positive association? (c.3) Explain the economic challenges associated with your previous re- sults.
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