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 Research Institute of Industrial Economics in its series Working Paper Series with number
595.
Length: 25 pages Date of creation: 15 May 2003 Date of revision: Handle: RePEc:hhs:iuiwop:0595
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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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[Downloadable!]
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Hassler, John & Mora, Jose & Storesletten, Kjetil & Zilibotti, Fabrizio, 2002.
"The Survival of the Welfare State,"
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[Downloadable!]
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