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Economic and social security in the twenty-first century, with attention to Europe

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  • DREZE, Jacques H.

Abstract

A partly heuristic attempt at exploring long-run policies aimed at a second-best compromise between ex ante risk-sharing efficiency and ex post productive efficiency. Wage subsidies for low-skilled workers financed by taxes on high wages are advocated, together with improved risk sharing between capital and labour, between generations and between the countries belonging to EMU. The scope of the advocated policies is limited by considerations of moral hazard, time consistency and fiscal competition. Also, estimates of some key economic parameters remain very imprecise. Several avenues of further research are identified.
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Suggested Citation

  • DREZE, Jacques H., 2000. "Economic and social security in the twenty-first century, with attention to Europe," LIDAM Reprints CORE 1482, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1482
    DOI: 10.1111/1467-9442.00204
    Note: In : Scandinavian Journal of Economics, 102(3), 327-348, 2000
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    2. Agell Jonas, 2002. "On the Determinants of Labour Market Institutions: Rent Seeking vs. Social Insurance," German Economic Review, De Gruyter, vol. 3(2), pages 107-135, May.
    3. Pierre M. Picard & Tim Worrall, 2009. "Currency Unions and International Assistance," DEM Discussion Paper Series 09-01, Department of Economics at the University of Luxembourg.

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    More about this item

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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