The Welfare State -- Background, Achievements, Problems
This paper starts out with a brief discussion of the historical background, the justifications and the political forces behind the built up of the modern welfare state. It also summarizes its major achievements in terms of economic efficiency and redistribution. The paper also tries to identify some major problems of contemporary welfare-state arrangements, differentiating exogenous shocks from endogenous behaviour adjustments by individuals to the welfare state itself. The latter include tax distortions, moral hazard, and endogenous changes in social norms concerning work and benefit dependency.
|Date of creation:||27 Feb 2006|
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- Lindbeck, Assar & Nyberg, Sten & Weibull, Jörgen W., 1997.
"Social Norms and Economic Incentives in the Welfare State,"
Working Paper Series
476, Research Institute of Industrial Economics.
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"The Family and the State,"
University of Chicago - Population Research Center
87-15, Chicago - Population Research Center.
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OECD Social, Employment and Migration Working Papers
23, OECD Publishing.
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"A Model of Income Insurance and Social Norms,"
742, Stockholm University, Institute for International Economic Studies.
- Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150-150, March.
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