Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/76313 
Authors: 
Year of Publication: 
2003
Series/Report no.: 
CESifo Working Paper No. 976
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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.
Subjects: 
welfare state
welfare-state dynamics
political equilibrium
social norms
Document Type: 
Working Paper
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