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Incentives in the Welfare-State

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Author Info
Assar Lindbeck ()

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Abstract

This paper deals with economic incentives and welfare-state arrangements in OECD countries. It discusses both positive and negative incentives for economic efficiency and economic growth. After an analysis of static considerations the paper concentrates on what may be called "dynamic" incentive issues, i.e. incentive effects that evolve over time. The discussion covers also the interplay between incentives and social norms among individuals, including endogenous changes in these norms. A number of marginal and radical reforms of the welfare state are discussed. At the end, the paper offers some lessons for would-be welfare states.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 111.

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Date of creation: 1996
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Handle: RePEc:ces:ceswps:_111

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Milanovic, Branko, 1995. "Poverty, inequality, and social policy in transition economies," Policy Research Working Paper Series 1530, The World Bank. [Downloadable!]
  2. Robert C. Merton, 1981. "On the Role of Social Security as a Means for Efficient Risk-Bearing in an Economy Where Human Capital Is Not Tradeable," NBER Working Papers 0743, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Bjorklund, A. & Palme, M. & Svensson, I., 1995. "Assessing the Effects of Swedish Tax and Benefit Reforms on Income Distribution Using Different Income Concepts," Papers 13, Uppsala - Working Paper Series.
  4. Ljungqvist, Lars & Sargent, Thomas J, 1995. "Welfare States and Unemployment," Economic Theory, Springer, vol. 6(1), pages 143-60, June.
  5. Lindbeck, Assar, 1995. " Welfare State Disincentives with Endogenous Habits and Norms," Scandinavian Journal of Economics, Blackwell Publishing, vol. 97(4), pages 477-94, December.
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  6. Haveman, Robert & Wolfe, Barbara, 1993. "Children's Prospects and Children's Policy," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 153-74, Fall. [Downloadable!] (restricted)
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  7. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June. [Downloadable!] (restricted)
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  8. Lindbeck, A., 1994. "Uncertainty under the Welfare State - Policy Induced Risk -," Papers 576, Stockholm - International Economic Studies.
  9. Peter Diamond, 2004. "Social Security," American Economic Review, American Economic Association, vol. 94(1), pages 1-24, March. [Downloadable!]
  10. Alesina, Alberto & Rodrik, Dani, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 465-90, May. [Downloadable!] (restricted)
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  11. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October. [Downloadable!] (restricted)
  12. Lindbeck, A & Nyberg, S & Weibull, J-W, 1996. "Social Norms, the Welfare State, and Voting," Papers 608, Stockholm - International Economic Studies.
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  13. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June. [Downloadable!] (restricted)
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  14. Paul Cashin, 1994. "Government Spending, Taxes, and Economic Growth," IMF Working Papers 94/92, International Monetary Fund.
  15. Markus JΣntti & Sheldon Danziger, 1994. "Child poverty in Sweden and the United States: The effect of social transfers and parental labor force participation," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 48(1), pages 48-64, October.
  16. Krumm, Kathie & Milanovic, Branko & Walton, Michael, 1994. "Transfers and the transition from socialism : key tradeoffs," Policy Research Working Paper Series 1380, The World Bank. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gerold Blümle & Friedrich Sell, 1998. "A positive theory of optimal personal income distribution and growth," Atlantic Economic Journal, International Atlantic Economic Society, vol. 26(4), pages 331-352, December. [Downloadable!] (restricted)
  2. Sinn, Hans-Werner, 1999. "Inflation and Welfare: Comment on Robert Lucas," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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