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Welfare state, rent seeking and interest groups
[Etat Providence, recherche de rente et activité des groupes d'intérêt]

Author

Listed:
  • François Facchini

    (UP1 UFR02 - Université Paris 1 Panthéon-Sorbonne - École d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

The origin of the welfare state is a core social issue for public finance in the 20th century. The welfare state is said to be established in a country whose state finances education, health, pensions and housing. All these goods are private goods financed by taxation or merit goods. These goods are produce by state because state generates rent. Then, the main reason for ever growing social expenditure, it holds, is rent-seeking. Welfare expenditure increases because the democratic process allocates rents. In this perspective, the welfare state expanded as result of an investment in rent-seeking. Social expenditure is a system of net transfers to the best organized interest groups i.e. the middle class interest group (Tullock 1983, Anderson 1987). This chapter uses this model to explain poverty programs, intergenerational transfers, health expenditure, education spending and social housing.

Suggested Citation

  • François Facchini, 2024. "Welfare state, rent seeking and interest groups [Etat Providence, recherche de rente et activité des groupes d'intérêt]," Post-Print hal-04584030, HAL.
    • Handle: RePEc:hal:journl:hal-04584030
    DOI: 10.4337/9781035306497.00011
    as

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