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Social protection and political competition

  • Gabszewicz, J. J.
  • van Ypersele, T.

This paper analyses how the level of social protection is determined when its choice depends on political competition. First this is done under autarky. Then the analysis is extended to take account of the existence of an international capital market. We show that social protection never increases under international competition and, in several circumstances, drastically decreases.

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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 61 (1996)
Issue (Month): 2 (August)
Pages: 193-208

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Handle: RePEc:eee:pubeco:v:61:y:1996:i:2:p:193-208
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  1. Torsten Persson & Guido Tabellini, 1990. "The Politics of 1992: Fiscal Policy and European Integration," NBER Working Papers 3460, National Bureau of Economic Research, Inc.
  2. Magee,Stephen P. & Brock,William A. & Young,Leslie, 1989. "Black Hole Tariffs and Endogenous Policy Theory," Cambridge Books, Cambridge University Press, number 9780521362474, November.
  3. Wildasin, D.E., 1987. "Nash equilibria in models of fiscal competition," CORE Discussion Papers 1987020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 162, Princeton, Woodrow Wilson School - Public and International Affairs.
  5. MINTZ, Jack & TULKENS, Henry, . "Commodity tax competition between member states of a federation: equilibrium and efficiency," CORE Discussion Papers RP 693, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Lejour, A. & Verbon, H., 1993. "Capital Mobility and Social Insurance in an Integrated Market," Papers 9379, Tilburg - Center for Economic Research.
  7. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-85, December.
  8. Bucovetsky, Sam & Wilson, John Douglas, 1991. "Tax competition with two tax instruments," Regional Science and Urban Economics, Elsevier, vol. 21(3), pages 333-350, November.
  9. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 135.
  10. Robert E. Baldwin, 1982. "The Political Economy of Protectionism," NBER Chapters, in: Import Competition and Response, pages 263-292 National Bureau of Economic Research, Inc.
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