The working of the welfare state and its redistribution mechanisms in a federation of region/countries
FP4 — Training and Mobility of Researchers
- Duration
- 1996-06-01 → 1997-11-30
- EU contribution
- —
- Participants
- 2
- Scheme
- RGI
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Project objective
Most industrial countries take care of the well-being of their citizens through the institution of the welfare state. This institution redistributes realised incomes and provides social insurance. In recent years, countries have become more integrated, both politically and economically. This research wants to investigate the effects of such closer integration on the working of welfare states. In particular, it wants to address questions such as: - does integration of economies lead to extra constraints on welfare states' programmes, or does it also offer new possibilities for efficiency enhancing arrangements? - which agency problems arise in the three-tier relationship federal government/regional government/citizens? - how and at what level should welfare state programmes be organised in a federation of countries/regions? - what collective responses can be designed to remedy fiscal externality problems and to exploit inter-regional risk sharing opportunities, and how can they be implemented? These issues will be looked into by importing insights and techniques from the public economics literature and from recent developments in the design of incentive contracts under conditions of asymmetnc information and uncertainty.
Original text from CORDIS.
Participants
Links
Data: CORDIS, © European Union