Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81236
Authors: 
Lindbeck, Assar
Year of Publication: 
2006
Series/Report no.: 
IFN Working Paper 662
Abstract: 
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.
Subjects: 
Justifications for Welfare State
Incentive Problems
Moral Hazard
Social Norms
JEL: 
H40
H53
H55
J22
Document Type: 
Working Paper

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