Abstract
Does the supply of a welfare state create its own demand? Many economic scholars studying welfare arrangements refer to Say’s law and insinuate a self-destructive welfare state. However, little is known about theempirical validity of these assumptions and hypotheses.We study the dynamic effect of different welfare arrangements on benefit fraud. In particular, we analyze the impact of the welfare state on the respective social norm, i.e. benefit morale. It turns out that a high level of public social expenditures and a high unemployment rate are associated with a small positive (or no) immediate impact on benefit morale,
which however is (partly) crowded out by adverse medium and long run effects. In contrast to earlier studies we do not find that younger birth cohorts have lower values of benefit morale.
| Original language | English |
|---|---|
| Pages (from-to) | 55-74 |
| Number of pages | 20 |
| Journal | Kyklos |
| Volume | 63 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2010 |
Fields of science
- 405002 Agricultural economics
- 502 Economics
- 502001 Labour market policy
- 502002 Labour economics
- 502003 Foreign trade
- 502009 Corporate finance
- 502010 Public finance
- 502012 Industrial management
- 502013 Industrial economics
- 502018 Macroeconomics
- 502020 Market research
- 502021 Microeconomics
- 502025 Econometrics
- 502027 Political economy
- 502039 Structural policy
- 502042 Environmental economics
- 502046 Economic policy
- 502047 Economic theory
- 504014 Gender studies
- 506004 European integration
- 507016 Regional economy
- 303010 Health economics
JKU Focus areas
- Social Systems, Markets and Welfare States
- Social and Economic Sciences (in general)
