By Torben M. Andersen, Per Molander
This accomplished survey of key welfare coverage matters, in an age of globalization and getting older populations, attracts on comparative OECD facts and case reports from Scandinavia. Torben Andersen and according to Molander supply a forceful research of the most demanding situations to the normal public quarter welfare country and discover the central coverage thoughts open to governments in complex economies. They examine the benefits and drawbacks of different welfare regimes with much less reliance on public zone involvement.
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Additional info for Alternatives for Welfare Policy: Coping with Internationalisation and Demographic Change
The latter applies in particular to issues in relation to taxation where increased mobility of certain tax bases increases the externalities between tax jurisdictions. Obviously, such changes raise deep questions of authority beside the economic ones. Another argument suggests that, at least for certain tasks, it might be possible to allow for more decentralised or ﬂexible solutions. Advances in information and communication technologies change some of the constraints that have supported more standardised solution which have tended to characterise centralised solutions in the past.
This line of reasoning often motivates calls for coordinated ﬁscal expansions among the major economies. However, this view does not have unequivocal support in economic theory, and it turns out that the opposite situation has support in a wide range of circumstances. The reason is the following: an expansion of public sector activity tends to improve the 8 9 This has, however, been accompanied by an expansion of the tax base; hence tax reductions are not proportional to reductions in the rates.
By deﬁning an account for each single individual it would be possible to ‘internalise’ these payments, and thereby reduce tax rates and the excess burden of the present system at the same time as the individual incentives are created to economise on transfers. An open question is whether one in such a system can attain the same risk diversiﬁcation as in the current Introduction 19 systems. Proposals have been made to introduce welfare accounts for speciﬁc areas or more generally for most of the activities currently ﬁnanced via general taxation in the universal welfare model.