Endogenous social norms - implications for optimal welfare state programs
(2009) In Working Paper- Abstract
- This paper investigates the implications of an endogenous social work norm for the optimal welfare state program. Assuming that individual productivity is observable, the analysis finds that restrictions on program participation, implying a larger benefit to a smaller group of recipients, may be welfare improving. However, the effect of the norm is indeterminate. The disutility of non-compliance suggests a higher benefit; the endogeneity of the norm suggests a lower benefit. Assuming that individual productivity is not observable, the analysis finds that the social norm unambiguously contributes to increased program generosity. However, for sufficiently generous policies, the norm contributes to program retrenchment.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1502955
- author
- Dackehag, Margareta LU
- organization
- publishing date
- 2009
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- Welfare analysis, Social norm, Welfare state
- in
- Working Paper
- issue
- 17
- publisher
- Department of Economics, Lund University
- language
- English
- LU publication?
- yes
- id
- 8ecb6f22-235d-468e-8b0d-4f2cf392135c (old id 1502955)
- alternative location
- http://swopec.hhs.se/lunewp/abs/lunewp2009_017.htm
- date added to LUP
- 2016-04-04 10:14:49
- date last changed
- 2021-03-30 09:38:08
@misc{8ecb6f22-235d-468e-8b0d-4f2cf392135c, abstract = {{This paper investigates the implications of an endogenous social work norm for the optimal welfare state program. Assuming that individual productivity is observable, the analysis finds that restrictions on program participation, implying a larger benefit to a smaller group of recipients, may be welfare improving. However, the effect of the norm is indeterminate. The disutility of non-compliance suggests a higher benefit; the endogeneity of the norm suggests a lower benefit. Assuming that individual productivity is not observable, the analysis finds that the social norm unambiguously contributes to increased program generosity. However, for sufficiently generous policies, the norm contributes to program retrenchment.}}, author = {{Dackehag, Margareta}}, keywords = {{Welfare analysis; Social norm; Welfare state}}, language = {{eng}}, note = {{Working Paper}}, number = {{17}}, publisher = {{Department of Economics, Lund University}}, series = {{Working Paper}}, title = {{Endogenous social norms - implications for optimal welfare state programs}}, url = {{https://lup.lub.lu.se/search/files/5495595/1503987}}, year = {{2009}}, }