| Author: | Andersen, T.M. |
| Title: | International integration, risk and the welfare state |
| Journal: | Scandinavian Journal of Economics
2002 : SEP, VOL. 104:3, p. 343-364 |
| Index terms: | Equilibrium analysis Public expenditure Integration Social security Risk Models International |
| Language: | eng |
| Abstract: | How does international integration affect the welfare state? International integration may affect the distortions caused by welfare state activities but also the risks motivating social insurance mechanisms. This paper addresses these potentially counteracting effects in a fully specified intertemporal two-country stochastic endowment model, focusing on the implications when product market integration reduces trade frictions across national product markets. Among others, it is shown that lower trade frictions may increase the marginal costs of public funds. |
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