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Economic and Social Security in the Twenty‐first Century, with Attention to Europe

Author

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  • Jacques H. Dreze

Abstract

A partly heuristic attempt is made to explore long‐run policies aimed at a second‐best compromise between ex ante risk‐sharing efficiency and ex post productive efficiency. Wage subsidies for low‐skilled workers financed by taxes on high wages are advocated, together with improved risk sharing between capital and labour, between generations and among the countries belonging to EMU. The scope of the policies advocated is limited by considerations of moral hazard, time consistency and fiscal competition. Moreover, estimates of some key economic parameters remain very imprecise. Several avenues of further research are identified.

Suggested Citation

  • Jacques H. Dreze, 2000. "Economic and Social Security in the Twenty‐first Century, with Attention to Europe," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(3), pages 327-348, September.
    • Handle: RePEc:bla:scandj:v:102:y:2000:i:3:p:327-348
    DOI: 10.1111/1467-9442.00204
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    Cited by:

    1. Agell Jonas, 2002. "On the Determinants of Labour Market Institutions: Rent Seeking vs. Social Insurance," German Economic Review, De Gruyter, vol. 3(2), pages 107-135, May.
    2. Pierre M. Picard & Tim Worrall, 2009. "Currency Unions and International Assistance," DEM Discussion Paper Series 09-01, Department of Economics at the University of Luxembourg.
    3. Luciano G. Greco, 2011. "Optimal Redistribution with Productive Social Services," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 55-73, March.

    More about this item

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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