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Sustainable Social Spending
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
2005 (English)Report (Other academic)
Abstract [en]

The paper discusses a number of threats to the financial sustainability of social spending: increased internationalization of national economies, gradually higher relative costs of producing a number of human services, the ”graying” of the population, slower productivity growth in the private sector, low employment rates, and various types of disincentive effects related to the welfare state itself, including services and disincentive effects of welfare-state arrangements, in particular moral hazard and benefit dependency, are more difficult to deal with than the other threats. I also discuss the choice between ad hoc policy reforms and automatic adjustment mechanisms, delegated to administrative bodies, for dealing with these threats.

Place, publisher, year, edition, pages
Stockholm: IIES , 2005. , 42 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University. (Online), ISSN 1653-610X ; 739
Keyword [en]
sustainable fiscal policy, Baumol's disease, moral hazard, automatic adjustment mechanisms
National Category
URN: urn:nbn:se:su:diva-42218OAI: diva2:344417
Available from: 2010-08-19 Created: 2010-08-19 Last updated: 2010-08-19Bibliographically approved

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Lindbeck, Assar
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