Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129666
Authors: 
Bergh, Andreas
Year of Publication: 
2016
Series/Report no.: 
IFN Working Paper 1109
Abstract: 
Welfare services are an important part of the Nordic welfare states both financially and for welfare state redistribution. Baumol's cost disease, Wagner's law, and population ageing are often said to bring challenges for the future provision of welfare services. While none of the three poses an immediate threat against the financial sustainability of the welfare state, they have important implications for distribution and for the political support for the welfare state. The combination demographic change, a higher relative price of welfare services and increasing demand for welfare services may force politicians to make a difficult choice between increasing taxes, allowing people to top up publicly financed services with additional private financing, or risk eroding support for the welfare state.
Subjects: 
Welfare services
redistribution
Baumol's disease
Wagner's law
population aging
JEL: 
H11
I38
J11
J18
Document Type: 
Working Paper

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