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By Torben M. Andersen, Per Molander

This accomplished survey of key welfare coverage concerns, in an age of globalization and growing old populations, attracts on comparative OECD info and case experiences from Scandinavia. Torben Andersen and according to Molander offer a forceful research of the most demanding situations to the normal public area welfare kingdom and discover the important coverage suggestions open to governments in complicated economies. They verify the benefits and drawbacks of other welfare regimes with much less reliance on public area involvement.

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Additional info for Alternatives for Welfare Policy: Coping with Internationalisation and Demographic Change

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In an interesting quantitative evaluation, Sørensen (2000) finds in an analysis of capital and corporate income taxation that tax rates in the non-cooperative case tend to be about fifteen percentage points below the cooperative level. 1 above). However, there may be important adverse distributional consequences since the position of low-income groups might be worsened because they tend to bear more of the burden of adjustment when tax revenues are reduced. Baldwin and Krugman (2000) have contested the argument that tax competition causes a race to the bottom, arguing that agglomeration effects do not make core and periphery countries symmetrical, and therefore the scope for periphery countries to compete via low taxes (and other measures) for the location of firms supplying the core market is modest.

The reason is the following: an expansion of public sector activity tends to improve the 8 9 This has, however, been accompanied by an expansion of the tax base; hence tax reductions are not proportional to reductions in the rates. The Primarolo-group (2000) considered 271 arrangements for the taxation of corporations in EU and associated areas, and found 66 cases in which the principle of non-tax competition was broken. International integration and the welfare state 35 terms of trade, that is, foreign goods become cheaper relative to domestic goods, and this has a positive real income effect for domestic residents.

Jacobson, T. , ‘Long-run relations between private and public sector wages in Sweden’, Empirical Economics, 19, 343–60. Johansson, P. , 1998, Assessing the effect of compulsory sickness insurance on worker absenteeism, SSE/EFI Working Paper series on Economics and Finance No. 287, Stockholm School of Economics, Stockholm (to appear in the Journal of Human Resources). Korpi, W. , 1998, ‘The paradox of redistribution and strategies of equality . ’, American Sociological Review, 63, 661–87. , 1997, ‘Incentives and social norms in household behavior’, American Economic Review, 87: 2, 370–7.

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