Measuring and Comparing the Regulatory Welfare State: Social Objectives in Public Procurement

Abstract

This article constructs an index that translates the substance of policy documents into numeric values across three dimensions of regulation—a qualitative assessment of policy substance, its potential impact, and enforcement of regulation—which aims to capture the strength of social objectives in the economy. It draws on theories of economic regulation and literature on the welfare state to develop a general understanding of social objectives. The use of the index is illustrated through public procurement regulation in two European countries (France and Germany) and shows an overall increase in the strength of social objectives. It also highlights systematic differences in country priorities in the regulation of their economy. The index demonstrates that social regulation can be measured and compared in a meaningful way within and across countries.