insurance arrangements (mainly pensions and unemployment compensation) rather than by social assistance schemes targeted to the … allowances). Current reform needs are illustrated by using unemployment benefits and pensions as examples …

argued that public welfare programs can be viewed as a crime-preventing or disruption-preventing devices because they tend to … choice, wage subsidies may be better than pure transfers. Using a simple growth model, the optimal size of the public welfare … program is found and it is argued that public welfare should be financed with income (not lump-sum) taxes, despite the fact …