One of the novelties of the analysis presented in t
his paper is the inclusion of implementation-relate
d
variables in the analysis of the effectiveness of A
LMPs. Three performance indicators were
constructed capturing three different dimensions of
implementation:
allocation of resources to the
implementation of policies
, continuity and timing in the implementation of pr
ogrammes. The first
dimension is measured by the overall expenditure on
programme administration
10
as a percentage of
total expenditure in ALMPs. Second, following Schmi
d (1996),
continuity
in the implementation of
programmes is measured by the dynamics of ALMP expe
nditure, i.e. large annual variation in
spending (fluctuations that exceed cyclical swings)
would be the antithesis of continuity in
implementation. This variation was captured by the
difference between the fluctuations (measured by
the standard deviation) in real GDP growth and the
growth rate of ALMP spending. Third, as
explained above, the variable
timing
measures whether policies are implemented in a cou
ntercyclical