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- W2052459499 abstract "Using a two-sector-two-country model with aggregate scale economies and unionisation, we show that optimal welfare state policy entails positive levels of unemployment benefits under free-trade and capital mobility. In this setting, economic integration does not reduce the revenue raising capacity of governments and thus does not lead to a race-to-the-bottom in social standards. Instead, trade and capital flows interact with welfare state policies in increasing welfare even when each government acts independently (non-cooperatively) in determining its optimal welfare payment. Cooperation is shown to improve upon noncooperative outcomes by raising both the generosity of the welfare state and aggregate welfare." @default.
- W2052459499 created "2016-06-24" @default.
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- W2052459499 date "2005-11-07" @default.
- W2052459499 modified "2023-09-23" @default.
- W2052459499 title "Aggregate Scale Economies, Market Integration, and Optimal Welfare State Policy" @default.
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