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Yes, There Are Hayekian Welfare States (At Least in Theory)

Listed author(s):
  • Andreas Bergh

The neoclassical problem of distortionary taxation and the Hayekian knowledge problem are two different lines of argumentation against government interventions. When it applies, the Hayekian argument against government intervention is stronger than the neoclassical argument, because interventions can be designed to minimize distortions, but governments cannot escape the knowledge problem. A Hayekian welfare state would combine low levels of regulation with social insurance schemes that are not terribly vulnerable to the knowledge problem.

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Article provided by Econ Journal Watch in its journal Econ Journal Watch.

Volume (Year): 12 (2015)
Issue (Month): 1 (January)
Pages: 22-27

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Handle: RePEc:ejw:journl:v:12:y:2015:i:1:p:22-27
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  1. Andreas Bergh, 2014. "Sweden and the Revival of the Capitalist Welfare State," Books, Edward Elgar Publishing, number 15717.
  2. Hansson, Ingemar, 1984. " Marginal Cost of Public Funds for Different Tax Instruments and Government Expenditures," Scandinavian Journal of Economics, Wiley Blackwell, vol. 86(2), pages 115-130.
  3. Cecil E. Bohanon & John B. Horowitz & James E. McClure, 2014. "Saying Too Little, Too Late: Public Finance Textbooks and the Excess Burdens of Taxation," Econ Journal Watch, Econ Journal Watch, vol. 11(3), pages 277-296, September.
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