Working Papers, Department of Economics, Lund University
Endogenous social norms – implications for optimal welfare state programs
Abstract: This paper investigates the implications of an endogenous
social work norm for the optimal welfare state program. Assuming that
individual productivity is observable, the analysis finds that restrictions
on program participation, implying a larger benefit to a smaller group of
recipients, may be welfare improving. However, the effect of the norm is
indeterminate. The disutility of non-compliance suggests a higher benefit;
the endogeneity of the norm suggests a lower benefit. Assuming that
individual productivity is not observable, the analysis finds that the
social norm unambiguously contributes to increased program generosity.
However, for sufficiently generous policies, the norm contributes to
Keywords: Welfare state; Social norm; Welfare analysis; (follow links to similar papers)
JEL-Codes: H11; H23; H53; I38; (follow links to similar papers)
14 pages, November 6, 2009
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to David Edgerton ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom