The paper examines the appropriate domain of the Welfare State by exploring the areas in which free enterprise fails to provide adequate welfare state services. The paper outlines a simple coherent strategy for formulating government welfare state policy by identifying the relevant market failures, government failures, and implementation costs. Two proposals for reform of the Welfare State are outlined.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
1018.
Find related papers by JEL classification: H1 - Public Economics - - Structure and Scope of Government H2 - Public Economics - - Taxation, Subsidies, and Revenue H4 - Public Economics - - Publicly Provided Goods I1 - Health, Education, and Welfare - - Health I2 - Health, Education, and Welfare - - Education I3 - Health, Education, and Welfare - - Welfare and Poverty P5 - Economic Systems - - Comparative Economic Systems
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