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Explaining Welfare Spending

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  • Overbye, Einar

Abstract

Welfare expenditures are difficult to explain within a pure public-choice framework. In this article, the author argues that the difficulties may be resolved by assuming that the main purpose of welfare schemes is to provide the electorate--in their capacity of different risk categories--with insurance against various social risks, rather than to redistribute economic resources towards weak and destitute groups in society. This solution not only explains the scope of existing welfare arrangements but may also hold the key to an explanation as to how public welfare policies change and evolve across time. Copyright 1995 by Kluwer Academic Publishers

Suggested Citation

  • Overbye, Einar, 1995. "Explaining Welfare Spending," Public Choice, Springer, vol. 83(3-4), pages 313-335, June.
    • Handle: RePEc:kap:pubcho:v:83:y:1995:i:3-4:p:313-35
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    Cited by:

    1. George R.G. Clarke, 2003. "The Effect of Medicaid On Cash Assistance To the Aged and Disabled Poor," Public Finance Review, , vol. 31(1), pages 3-43, January.
    2. Mehrdad Vahabi & Philippe Batifoulier & Nicolas Silva, 2020. "A theory of predatory welfare state and citizen welfare: the French case," Public Choice, Springer, vol. 182(3), pages 243-271, March.
    3. Saeid Mahdavi, 2009. "TA Re-examination of Wagner’s Law Based on Disaggregated U.S. State-Local Government Expenditure," Working Papers 0101, College of Business, University of Texas at San Antonio.
    4. Kittel, Bernhard & Obinger, Herbert, 2002. "Political parties, institutions, and the dynamics of social expenditure in times of austerity," MPIfG Discussion Paper 02/1, Max Planck Institute for the Study of Societies.

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