DP1018 What is the Domain of the Welfare State?

Author(s): Dennis J. Snower
Publication Date: November 1994
Keyword(s): Education, Free Enterprise, Health, Inequality, Poverty, Unemployment, Welfare State
JEL(s): H1, H2, H4, I1, I2, I3, P5
Programme Areas: Human Resources
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1018

The paper examines the appropriate domain of the Welfare State by exploring the areas in which free enterprise fails to provide adequate welfare state services. The paper outlines a simple coherent strategy for formulating government welfare state policy by identifying the relevant market failures, government failures, and implementation costs. Two proposals for reform of the Welfare State are outlined.