By Torben M. Andersen, Per Molander

This finished survey of key welfare coverage concerns, in an age of globalization and growing old populations, attracts on comparative OECD info and case reports from Scandinavia. Torben Andersen and according to Molander offer a forceful research of the most demanding situations to the conventional public quarter welfare country and discover the vital coverage techniques open to governments in complex economies. They investigate the benefits and drawbacks of different welfare regimes with much less reliance on public area involvement.

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1998, ‘The welfare state: a theoretical framework for justification and criticism’, Swedish Economic Policy Review, 5: 1, 11–33. , 1975, Micromotives and macrobehavior, New York: Norton. , 1995, ‘A theory of the welfare state’, Scandinavian Journal of Economics, 97, 495–526. ’, Challenge, Sept–Oct, 45–53. SOU, 1997, Skatter, tj¨anster, syssels¨attning (Taxes, services, employment), Stockholm: Fritzes. Statistics Sweden, 2002, Statistical Yearbook of Sweden, Stockholm. Tanzi, V. , 2000, Public spending in the 20th century: a global perspective, Cambridge: Cambridge University Press.

However, comparisons over longer time periods do not make it possible to conclude whether international integration leads to more or less aggregate volatility (Romer 1999). It is therefore an open question how quantitatively important the aggregate risk link is. Race to the bottom There is a widespread fear that international integration releases competitive forces causing a race to the bottom in which social standards and welfare state arrangements are rolled back. This arises through interdependencies between countries, causing a process whereby successive undercutting countries perceive that they can improve their relative position.

Mendoza, E. , Milesi-Ferretti, G. M. , 1997, ‘On the ineffectiveness of tax policy in altering long-run growth . ’, Journal of Public Economics, 66: 1, 99–126. , Harding, A. , 1994, ‘Targeting welfare’, Economic Record, 70: 210, 315–40. , 1993, Productivity trends in the public sector in Sweden. Report to the Expert Group on Public Finance, Ministry of Finance, Stockholm. OECD, 1999, Maintaining prosperity in an ageing society, Paris: OECD. Okun, A. , 1975, Equality and efficiency: the big trade-off , Washington, DC: Brookings Institution.

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