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Incentives in the Welfare-State

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  • Assar Lindbeck

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.

Suggested Citation

  • Assar Lindbeck, 1996. "Incentives in the Welfare-State," CESifo Working Paper Series 111, CESifo.
    • Handle: RePEc:ces:ceswps:_111
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    2. Weiss, Yoram & Fershtman, Chaim, 1998. "Social status and economic performance:: A survey," European Economic Review, Elsevier, vol. 42(3-5), pages 801-820, May.
    3. Michael Burda & Daniel Hamermesh & Philippe Weil, 2013. "Total work and gender: facts and possible explanations," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(1), pages 239-261, January.
    4. Fehr, Ernst & Falk, Armin, 2002. "Psychological foundations of incentives," European Economic Review, Elsevier, vol. 46(4-5), pages 687-724, May.
    5. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09j0h08322p is not listed on IDEAS
    6. Hans-Werner Sinn, 1999. "Inflation and Welfare: Comment on Robert Lucas," NBER Working Papers 6979, National Bureau of Economic Research, Inc.
    7. repec:hal:wpspec:info:hdl:2441/eu4vqp9ompqllr09j0h08322p is not listed on IDEAS
    8. Dufwenberg, Martin & Lundholm, Michael, 2001. "Social Norms and Moral Hazard," Economic Journal, Royal Economic Society, vol. 111(473), pages 506-525, July.
    9. Gerold Blümle & Friedrich Sell, 1998. "A positive theory of optimal personal income distribution and growth," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 26(4), pages 331-352, December.
    10. Kamila Fialová & OndÅej Schneider, 2009. "Labor Market Institutions and Their Effect on Labor Market Performance in the New EU Member Countries," Eastern European Economics, Taylor & Francis Journals, vol. 47(3), pages 57-83, May.
    11. Hillman, Arye L. & Epstein, Gil S, 2000. "Social Harmony At The Boundaries Of The Welfare State: Immigrants And Social Transfers," CEPR Discussion Papers 2414, C.E.P.R. Discussion Papers.
    12. Grossman, Herschel I. & Kim, Minseong, 2000. "Predators, moral decay, and moral revivals," European Journal of Political Economy, Elsevier, vol. 16(2), pages 173-187, June.
    13. Seliger Bernhard, 2001. "Die Krise der sozialen Sicherung und die Globalisierung – Politische Mythen und ordnungspolitische Wirklichkeit," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 52(1), pages 215-238, January.

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    More about this item

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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