Arbeitspapier

Endogenous social norms – implications for optimal welfare state programs

This paper investigates the implications of an endogenous social work norm for the optimal welfare state program. Assuming that individual productivity is observable, the analysis finds that restrictions on program participation, implying a larger benefit to a smaller group of recipients, may be welfare improving. However, the effect of the norm is indeterminate. The disutility of non-compliance suggests a higher benefit; the endogeneity of the norm suggests a lower benefit. Assuming that individual productivity is not observable, the analysis finds that the social norm unambiguously contributes to increased program generosity. However, for sufficiently generous policies, the norm contributes to program retrenchment.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2009:17

Klassifikation
Wirtschaft
Structure, Scope, and Performance of Government
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
National Government Expenditures and Welfare Programs
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Thema
Welfare state
Social norm
Welfare analysis

Ereignis
Geistige Schöpfung
(wer)
Dackehag, Margareta
Ereignis
Veröffentlichung
(wer)
Lund University, School of Economics and Management, Department of Economics
(wo)
Lund
(wann)
2009

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Dackehag, Margareta
  • Lund University, School of Economics and Management, Department of Economics

Entstanden

  • 2009

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