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A continuous theory of income insurance
In: CESifo working paper series 3097
In: Social protection
In this paper we treat an individual's health as a continuous variable, in contrast to the traditional literature on income insurance, where it is regularly treated as a binary variable. This is not a minor technical matter; in fact, a continuous treatment of an individual's health sheds new light on the role and functioning of income insurance and makes it possible to capture a number of real-world phenomena that are not easily captured in binary models. In particular, moral hazard is not regarded as outright fraud, but as a gradual adjustment of the willingness to go to work when income insurance is available. Further, the model can easily encompass phenomena such as administrative rejection of claims and the role of social norms. It also gives a rich view of the desirability of insurance in the first place.
Social norms and welfare state dynamics
In: CESifo working paper 931
In: Social protection
The paper analyses the interaction between economic incentives and work norms in the context of social insurance. If the work norm is endogenous in the sense that it is weaker when the population share of beneficiaries is higher, then voters will choose less generous bene.ts than otherwise. We also discuss welfare-state dynamics when there is a time lag in the adjustment of the norm in response to changes in this population share, and show how a temporary shift in the unemployment rate may cause persistence in the number of beneficiaries.
An essay on welfare state dynamics
In: CESifo working paper series 976
In: Public finance
The expansion of welfare-state arrangements is seen as the result of dynamic interaction between market behaviour and political behaviour, often with considerable time lags, sometimes generating either virtuous or vicious circles. Such interaction may also involve induced (endogenous) changes in social norms and political preferences. Moreover, the internationalisation process not only limits the ability of national governments to redistribute income; they also increase the political demands for international mobility of welfare-state benefits and social services. I also discuss the dynamics of reforms and retreats of welfare-state arrangements.
E-exchange and the boundary between households and organizations
In: CESifo working paper series 806
In: Industrial organization
The new information and communication technology, ICT, induces households to take over tasks from firms and government agencies, using tools and systems provided by these very same organizations. The result is often joint production activities. We argue that the importance of ICT for the exchange process between households and organizations is underestimated by only considering the con-sequences for the last stage of the process, i.e., the final purchase of goods and services. Our analysis of household behavior utilizes a modified version of Gary Becker's model of the household as a combined producer-consumer.
Changing tides for the welfare state
In: Working paper series Center for Economic Studies ; Ifo Institute ; 645
In: Category 3, Social protection
The European social model: lessons for developing countries
In: ERD working paper series 11
The division of labor and the market for organizations
In: Working paper series Center for Economic Studies ; Ifo Institute ; 267
Pensions and contemporary socioeconomic change
In: NBER working paper series 7770
Centralized bargaining and reorganized work: are they compatible?
In: Discussion paper series 56
Unemployment and macroeconomics
In: The Ohlin lectures 3
Selected essays of Assar Lindbeck, 2, Welfare State
In: Economists of the Twentieth Century Series
The present situation of macroeconomics
In: Chung-hua series of lectures by invited eminent economists 18