The Welfare State As Piggy Bank: Information, Risk, Uncertainty, and the Role of the State

'Presents a cogently argued account of the principles underlying Welfare State policies and their practical consequences... I have not seen the economic and public policy distinction between compulsory and post-compulsory education set out so clearly and convincingly before.' -Judith Marquand, Mansfield College, Oxford, Journal of Public Policy'The book is a fruitful blend of economic modelling and institutional analysis... An impressive feature is the author's discussion in each section of 'twenty first century issues' and the final part of the book on 'The Welfare State in a Changing World'... this book goes to the heart of the economic issues surrounding the welfare state, and stimulates the reader to further thought.' -Tony Atkinson, Nuffield College, Oxford'If I were asked to design a social policy course from scratch... I would certainly include Nicholas Barr's book as a key text... this is a stimulating and successful text, a good example of the contribution economic analysis can make to social policy teaching and study.' -Rudolf Klein, London School of Economics and London School of Hygiene, Social Policy'Barr's book can be strongly recommended to anyone with an interest in the development of social policy... Excellent and timely.' -Sir Howard Davies, Times Higher Education SupplementThis book is about economics and its application to the welfare state. Its core argument is that the welfare state exists for reasons additional to poverty relief, reasons arising out of pervasive problems of imperfect information, risk, and uncertainty. Barr focuses on the efficiency argument, indicating that the welfare state is here to stay, and discusses the ways in which it can and will adapt to economic and social change.