The expansion of welfare-state arrangements is seen as the result of dynamic interaction between market behaviour and political behaviour, often with considerable time lags, sometimes generating either virtuous or vicious circles. Such interaction may also involve induced (endogenous) changes in social norms and political preferences. Moreover, the internationalisation process not only limits the ability of national governments to redistribute income; they also increase the political demands for international mobility of welfare-state benefits and social services. I also discuss the dynamics of reforms and retreats of welfare-state arrangements.
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Paper provided by Stockholm University, Institute for International Economic Studies in its series Seminar Papers with number
719.
Length: 26 pages Date of creation: 17 May 2003 Date of revision: Handle: RePEc:hhs:iiessp:0719
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Find related papers by JEL classification: H10 - Public Economics - - Structure and Scope of Government - - - General H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
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Lindbeck, Assar & Persson, Mats, 2002.
"The Gains from Pension Reform,"
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[Downloadable!]
Other versions:
John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 2001.
"The Survival of the Welfare State,"
Economics Working Papers
603, Department of Economics and Business, Universitat Pompeu Fabra.
[Downloadable!]
Other versions:
Hassler, John & Mora, Jose & Storesletten, Kjetil & Zilibotti, Fabrizio, 2002.
"The Survival of the Welfare State,"
Seminar Papers
704, Stockholm University, Institute for International Economic Studies.
[Downloadable!]
John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Abrizio Zilibotti, 2003.
"The Survival of the Welfare State,"
American Economic Review,
American Economic Association, vol. 93(1), pages 87-112, March.
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