New PDF release: Building a Dynamic Europe: The Key Policy Debates

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By Jordi Gual

ISBN-10: 0521827345

ISBN-13: 9780521827348

This succinct survey contains an important fiscal coverage concerns dealing with eu governments and company as they try to revive progress to the region's flagging financial system. even though written often in a non technical sort, the publication comprises a few of the sharpest research to be had of the commercial difficulties presently dealing with Europe's coverage makers and is key examining for tutorial or expert readers attracted to ecu monetary improvement.

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Extra info for Building a Dynamic Europe: The Key Policy Debates

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In a parliamentary regime, the existence of legislative cohesion favours the funding of broad expenditure programmes for public goods or of transfer programmes that benefit large majorities. However, it is also a machine for collusion that allows politicians jointly to reap rents using their privileged position in power. This should lead to the provision of more public goods, but also to more corruption and to government being bigger. Presidential systems that lack such legislative cohesion tend to produce legislation that favours more narrowly targeted expenditure programmes, benefiting local constituencies of particular representatives.

Governments have also boosted the consumption of various types of (personal) social services with strong elements of investment in human capital – in particular, education and health care, as well as child care in some countries. Poverty has also been mitigated, not only as a result of social insurance but also via selective income support and social services that are made available for low-income groups. In countries where the children of low-income groups enjoy a relatively large share of aggregate education services, the factor incomes of these groups have also improved.

Indeed, there is some empirical support for this speculation (Alesina and Rodrik, 1994). What, then, are the main weaknesses of today’s social arrangements in Europe? Hence, what are the basic arguments for welfare state reforms? In very general terms, it is useful to distinguish between three types of weaknesses. First, the financial viability of some welfare state arrangements is not very robust to shocks, for instance, in demography, productivity growth, macroeconomic fluctuations and unemployment.

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Building a Dynamic Europe: The Key Policy Debates by Jordi Gual


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