Working Paper No. 646

Sustainable Social Spending

Publicerad: July 5, 2005Antal sidor: 39Nyckelord: Sustainable Fiscal Policy; Baumol’s Disease; Moral Hazard; Automatic Adjustment MechanismsJEL-koder: E62; H31; H53

Sustainable Social Spending Assar Lindbeck


The paper discusses a number of threats to the financial sustainability of social spending: increased internationalization of national economies, gradually higher relative costs of producing a number of human services, the “graying” of the population, slower productivity growth in the private sector, low employment rates, and various types of disincentive effects related to the welfare state itself, including moral hazard. I argue that threats from gradually rising costs of providing human services and disincentive effects of welfare-state arrangements, in particular moral hazard and benefit dependency, are more difficult to deal with than the other threats. I also discuss the choice between ad hoc policy reforms and automatic adjustment mechanisms, delegated to administrative bodies, for dealing with these threats.

 

Assar Lindbeck

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Senaste boken

Flyget och företagen

 

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Shon Ferguson, IFN, och Rikard Forslid, Stockholms universitet, har forskar om flygets betydelse för näringslivet.

Forskarna visar att inrikes direktlinjer till Stockholm är viktiga för tillverkningsindustrin i kommunerna utanför de tre storstadsregionerna och att internationella direktlinjer är särskilt betydelsefulla för tjänstesektorn.

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