Seminar Papers, Institute for International Economic Studies, Stockholm University
No 719:
An Essay on Welfare State Dynamics
Assar Lindbeck ()
Abstract: 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.
Keywords: welfare state; welfare-state dynamics; political equilibrium; social norms; (follow links to similar papers)
JEL-Codes: H10; H50; (follow links to similar papers)
26 pages, May 17, 2003
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