Abstract
In this chapter we reconsider the role of the welfare state in modern market economies. After defining the welfare state, and distinguishing between its insurance and redistributive functions (sections 4.2 and 4.3), we tackle the issue first by studying the relationship between the welfare state and economic theory, doing so by analysing how the economic literature has investigated the role and justifications for the welfare state. We address three specific themes: the economic environment in which the institutions of the welfare state are embedded; the impact that they have on savings; and the effects that they generally produce on incentives (section 4.4 and subsections).
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© 2008 Roberto Artoni and Alessandra Casarico
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Artoni, R., Casarico, A. (2008). Insurance, Redistribution and the Welfare State: Economic Theory and International Comparisons. In: Costabile, L. (eds) Institutions for Social Well-Being. Palgrave Macmillan, London. https://doi.org/10.1057/9780230584358_5
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DOI: https://doi.org/10.1057/9780230584358_5
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