The name is absent

In general, when the SE/PE index is positive the regions can be considered good users of
public expenditure, and vice versa when the index is negative. In other words, assuming that
public expenditure is an important underpinning of well-being, when well-being measured by
functioning based on socio-economic indicators is higher than the one measured via public
expenditure indicators, we hold that public expenditure has been properly utilized to improve
well-being.

In our model both Lombardy and Emilia Romagna have positive SE/PE, while Campania
shows a negative value. Lombardy’s average value is about 20, meaning that the degree of
conversion of public expenditure is very high. Emilia Romagna’s is lower (about 8), thus public
expenditure seems to be less effectively used. Finally, the negative degree of conversion of
public expenditure in Campania seems to demonstrate a failure of public action, which could
also partly explain the low level of absolute PPH in that region.

4.4 CFM

Finally we simulate the whole CFM³⁸ for the region analyzed, under the usual hypothesis of
steady positive and negative growth. The values of the functionings are different from the ones
calculated in every specific sub-model (see 4.1, annex III, annex IV), owing to the interactions
within the commodities of the different sub-models. In the present test these interactions are
quite limited and their mathematical function is taken from the literature. For example the
relation between the commodity Occupation (functioning PPH) and the commodity Training
(functioning Education and Training) is 0.244, according to Laudisa (2000). Future refinements
of CFM cannot escape the necessity of considering more thoroughly all the possible interactions
within the model, in order to formalize the appropriate functions.

³⁸ PPH is based on socio-economic indicators; ET and SI are sketched in the annexes.

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