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A Single Welfare Benefit Level for Europe? Efficiency Implications of Policy Harmonization in a Federal System

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  • Jason L. Saving
Abstract
Within the European Union, it has been suggested that greater economic integration will help European economies regardless of the kind of integration Europe chooses to pursue. In this paper, I examine economic integration in the context of redistributive policy and lind that the effects of such integration are crucially dependent upon the level of redistribution to be adopted as a common policy, with higher welfare benefit levels associated with lower levels of federation output. This suggests that the case for policy harmonization at a generous level must rest on equity rather than efficiency considerations.

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  • Jason L. Saving, 2003. "A Single Welfare Benefit Level for Europe? Efficiency Implications of Policy Harmonization in a Federal System," Southern Economic Journal, John Wiley & Sons, vol. 70(1), pages 184-194, July.
    • Handle: RePEc:wly:soecon:v:70:y:2003:i:1:p:184-194
    DOI: 10.1002/j.2325-8012.2003.tb00563.x
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    References listed on IDEAS

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    1. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
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    4. Blank, Rebecca M., 1988. "The effect of welfare and wage levels on the location decisions of female-headed households," Journal of Urban Economics, Elsevier, vol. 24(2), pages 186-211, September.
    5. Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, vol. 81(4), pages 757-774, September.
    6. Wallace E. Oates, 1968. "The Theory of Public Finance in a Federal System," Canadian Journal of Economics, Canadian Economics Association, vol. 1(1), pages 37-54, February.
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