Csaba Ivan
Term: Winter 1995
Department of Political Science, Budapest


Lecture 1. A Brief History and Typology of Modern Welfare States
Required Readings:
Flora,P. and J. Alber (1981): "Modernization, Democratization and the Development of Welfare States in Western Europe" pp. 37-81 In: Flora,P. and A. J. Heidenheimer (1981) The Development of Welfare States in Europe and America. New Brunswick and London
Palme.J. (1990) Pension Rights in Welfare Capitalism. The Development of Old-Age Pensions in 18 OECD countries 1930 to 1985 (Chapter 1.: Approaches to the study of welfare state development) University of Stockholm. Swedish Institute for Social Research N.14
Espig-Andersen. G (1990): The Three Worlds of Welfare Capitalism (part 1.: The three political economies of the welfare state) Cambridge Polity Press
OECD (1985): Social Expenditure 1960-1990. Paris
OECD (1993): New Orientations in Social Policy, Paris
Recommended literature:
Marshall, T.H. (1950): "Citizenship and Social Class" in: Marshall, T.H. and Bottomore (1992): Citizenship and Social Class. Pluto Press
Offe C. (1981): "Some Contradictions of the Modern Welfare State" pp. 147- 162 In: Offe,C (1984): Contradictions of the Welfare State, Cambridge,Mass.MIT Press
Critical Review Vol.4 N.4 (Fall l990):The Welfare State
Briggs A. (1961). "The Welfare State in Historical Perspective", The European Journal of Sociology Vol.2
Hayek F.A.(1960): "The Constitution of Liberty" pp.253-67. Chicago. The University of Chicago Press

Lecture 2. The Welfare State and Parlamentary Democracy
Required readings:
Stigler, G.J. (1970) "Director's Law of Public Income Distribution". Journal of Law and Economics, 13. 1-10.
Goodin R.E. and J. Le Grand (1987) Not Only the Poor pp.203-28 London. Allen & Unwin
Tullock G. (1971) "The Charity of the Uncharitable", Western Economic Journal Vol. 9 N.4 pp.37992
Recommended literature:
Le Grand, J.(1982) The Strategy of Equality. London, Allen & Unwin
Baldwin, P. (1990) The Politics of Social Solidarity, (The introductory part) CUP
Meltzer, A.H. and S.F. Richard (1981) "A Rational Theory of the Size of Government" Journal of Political Economy, 89. 5, pp. 914-25
Atkinson A.B. and J.E. Stiglitz (1980)Lectures on Public Economics (Chapter 10) McGraw-Hill (UK)

Lecture 3. Social Policy in Eastern and Central Europe
Required Readings:
Deacon, B; (1992): "East European Welfare: Past, Present and Future in Comparative Context " pp.l31 In: Deacon et al. (1992) The New Eastern Europe
Kornai. J. (1992): The Socialist System (The chapter on consumption) OUP
Recommended literature:
Atkinson, A.B. and J. Micklewright (1992): Economic Transformation in Eastern Europe and the Distribution of Income
Marx,K: "Crtique of the Gotha Program." In: Feurer ed.: Marx and Engels: Basic Writings, New York: Doubleday
Deacon, B. and Szalai J. ed. (1990): Social Policy in the New Eastern Europe. Avebury, Gower Publishing Company
Deacon B ed. (1992): Social Policy, Social Justice and Citizenship in Eastern Europe. Avebury. Gower Publishing Company
Ringen S. and C. Wallace (1993) "Societies in Transition" - East Central Europe Today. CEU. Prague
Adam J. (1991) Economic Reforms and Welfare Systems in the USSR, Poland and Hungary.

Lecture 4. The Problem of Distributive Justice
Required readings:
Barr, N. (1993) The Economics of the Welfare State (chapter 3) Weidenfeld & Nicolson
Musgrave. R.A. and P.B. Musgrave (1989) Public Finance in Theory and Practice (Chapter. 6). London, McGraw-Hill
Rawls. J. (1972) A theory of Justice, pp. 54_100 Haward University Press
Nozick, R. (1974) Anarchy, State and Utopia pp.l5Q83, Oxford, Blackwell
Recommended literature:
Hayek F.A. (1976) Law, Legislation and Liberty (Chapter: 'Social' or Distributive Justice) London. Routledge and Kegan Paul
Sen A.K. (1973): On Economic Inequality. Oxford, Clarendon Press
Sen A.K. (1982): "Equality of What?" In: Choice. Welfare and Measurment. Oxford. Blackwell
Dworkin R. (1982): "What is Equality?" I. II. Philosophy of Public Affairs
Goodin. R.E. (1988): Reasons for Welfare: The Political Theory of the Welfare State, Princeton University Press
Phelps. E. S.ed. (1973): Economic Justice. Baltimore: Penguin
Walzer M. (1983): Spheres of Justice, A Defence of Pluralism and Equality. pp.L31 Oxford. Martin Robertson

Lecture 5. Poverty and Income Inequality
Required readings:
Atkinson A. B.(1989) "How Should We Measure Poverty?" pp.7-26 In: Poverty and Social Security, Harvester. Hemel Hempstead
Barr, N. (1993) The Economics of the Welfare State (chapter 6) Weidenfeld & Nicolson
Ringen, S (1987) The Possibility of Politics pp.l66-209 Oxford, Clarendon Press
Recommended literature:
Atkinson, A.B. and J. Micklewright (1992): Economic Transformation in Eastern Europe and theDistribution of Income. CUP 1992
Atkinson, A.B. (1985) The economics of Inequality, Oxford. OUP
Sen, A. K. (1983) Poor Relatively Speaking and Townsend. P (1985) A Sociological Approach to the Measurement of Poverty: A Rejoinder to Professor Amartya Sen. Oxford Economic Papers Vol.35,Vol.37.

Lecture 6. Economic Arguments For and Against Public llfelfare
Required readings:R
Barr, N. (1992) "Economic Theory and the Welfare State: A Survey and Reinterpretation". Journal of Economic Literature, June
Recomended literature:
Stiglitz J. E. (1988): Economics of the Public Sector (chapter 19 and pp.349-356) London. W.W.Norton & Company
Friedman. M. and R. Friedman (1980) Free to Choose, London, Penguin
Okun. A.M. (1975): Equality and Inefficency - The Big Tradeoff, The Brookings Institution

Lecture 7. Social Insurance and Public Pension Programs
Required readings:
Barr, N. (1993). The Economics of the Welfare State (chapters 5,8.9) Weidenfeld & Nicolson Atkinson. A.B. (1991): "Social Insurance, Welfare State Discussion" Paper 65. LSE
Recommended Literature:
a. On Insurance Markets: Rothsechild, M. and J. Stiglitz (1976) "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information", Quarterly Journal of Economics, Vol. 90 629-649
Pauly M. V. (1974): "Overinsurance and Public Provision of Insurance: The Role of Moral Hazard and Adverse Selection", Quarterly Journal of Economics. February
b. On Social Insurance: Diamond, P.A. (1977): "A Framework for Social Security Analysis", Journal of Public Economics, Vol.8, 275-298
Beveridge, Sir W (1942): Social Insurance and Allied Services. London HMSO pp. 8-20
Stiglitz, J.E. (1989): Economics of the Public Sector,(chapter 13) London W.W. Norton & Company
Thompson L.H. (1983): "The Social Security Reform Debate", Journal of Economic Literature. June OECD (1988): Reforming Public Pensions

Lecture 8. Alternative Forms of Non-contributory Benefits
Required Readings:
Atkinson (1988) "Social lnsurance and Income Maintenance" In: Atkinson A.B. (1988) Poverty and Social Security pp.104-125. Harvester.
Hemel Hempstead Barr, N. (1993j: "The Economics of the Welfare State" (chapters 10,11) Weidenfeld & Wicolson
Recommended literature:
Friedman, M. (1962) Capitalism and Freedom (The chapter on the negative income tax) Chicago, The University of Chicago Press
Atkinson A.-B. (1987): "Income Maintenance and Social Insurance: A Survey". In: Auerbach and P. Feldstein ed.: Handbook of Public Economics Vol.2
Danzinger. S.. R. Haveman and R. Plotnick (1981): "How Income Transfers Affect Work, Savings and the Income Distribution". Journal of Economic Literature, September
Brown, C.. C. Gilroy and A. Kohen (1982): "The Effect of the Minimum Wage on Employment and Unemployment", Journal of Economic Literature. January

Lecture 9. Occupational Welfare and Private Insurance
Rainwater L. and M. Rein ed. (1984): Private/Public Interaction in IncomeProtection,Washington
Titmuss, R.M. (1958): "The Social Division of Welfare" In: Titmuss. R.M.: Essays on the Welfare State. George Allen and Unwin.
Recommended literature:
Bodie Z. (1990): "Pensions as Retirement Income Insurance", Journal of Economic Literature, March
Dreze J. (1987): "Human Capital and Risk-Bearing" In: Dreze: Essays on Economic Decision under Uncertainty, Cambridge University Press
Kahn S. and Kammerman eds. (1989): Privatisation and the Welfare State, Princeton University Press
Papakadis E. and Taylor-Gooby (1987) the Privatisation of Public Welfare, New York State Martin Press

Lecture 10. Voluntary Organisations and Family Networks
Pollak. R. (1985): "A Transaction Cost Approach to Families and Households". Journal of Economic Literature. March
Becker. G. S. (1974): "The Theory of Social Interaction", Journal of Political Economy Vol.82 N6
Recommended literature:
Platteau, J.P.(l991): "Traditional Systems of Social Security and Hunger Insurance" In: Ahmed. E.,J.
Dreze, J. Hills and A. K. Sen (1991): Social Security in Developing Countries. Clarendon Press
Beveridge, Sir W. (1948): Voluntary Action: A Report on Methods of Social Advance. London. Allen& Unwin
Titmuss, R.M. (1976): The Gift Relationship. London. Allen & Unwin
Glazer, N. (1988): The Limits of Social Policy. Cambridge. Mass. Harvard University Press
Cox, D. (1987): Motives for Private Income Transfer. Journal of Political Economy
Gerard, D. (1983): Charities in Britain: Conservativism or Charge? Bedford Square Press/WCVO

Lecture 11. Health Care
Barr. N. (1993): "The Economics of the Welfare State" (chapter 12) Weidenfeld & Nicolson
Heidenheimer A.J.. H. Heclo. T. Carolyn (1990) "Comparative Public Policy." The Politics of Social Choice in America, Europe and Japan. pp.57-83 McMillan Press Ltd.
Recommended Literature:
Arrow, K. (1963): "Uncertainty and the Welfare Economics of Medical Care", American Economic Review, Vol. 53, 941-973.
Evans, R. G. (1981) Incomplete Vertical Integration: The Distinctive Structure of Health Care Industry, ln: van der Gaag, J. and Perlman. M. eds., Health, Economics and Health Economics, North Holland, Amsterdam
OECD (1990): Health Systems in Transition, Paris
OECD (1993): OECD Health Systems: Facts and Trends. Paris

Lecture 12. Education .
Required readings:
Barr. N. (1993): "The Economics of the Welfare State" (chapter 13) Weidenfeld & Nicolson
Heidenheimer A.J., H. Heclo, T. Carolyn (1990) Comparative Public Policy. The Politics of Social ' ~ Choice in America, Europe and Japan. pp.23-47 McMillan Press Ltd.
Recommended readings:
Glennerster, H. (1992): Paying for Welfare: The l990s, (The chapter on education) New York. London Harvester. Wheatsheaf
Glennerster, H. (1991): Quasi-Markets for Education? The Economic Journal, 101. pp.l268-76
Culyer A.J. The Political Economy of Social Policy (Chapter 9.) Oxford. Martin Robertson
Wise, A.E. and L. Darling-Hammond (1984): Education by Voucher: Private Choice and the Public Interest. Educational Theory.Vol.34 N.1
Barr N. (1989) "Student Loans. The Next Steps". David Hume Paper N.15. Aberdeen: Aberdeen University Press
Alchian, A.A. (1968) "The Economic and Social Impact of Free Tuition "In: Alchian. A.A. (1977): Economic Forces at Work, Indianapolis. Liberty Fund

Lecture 13. Housing
Required readings:
Barr, N. (1993): The Economics of the Welfare State (chapter 14) Weidenfeld & Nicolson
Heidenheimer A.J., H. Heclo, T. Carolyn (1990): Comparative Public Policy. The Politics of Social Choice in America. Europe and Japan. pp.97-126 McMillan Press Ltd.
Recommended literature:
Robinson, R. (1979): Housing Economics and Public Policy. London. Macmillan
Culyer A.J. (1980): The Political Economy of Social Policy (Chapter 10) Oxford. Martin Robertson
Kleiman, M. (1992): "Policy Responses to Changing Housing Markets: Towards a European Housing Policy?" Welfare State Discussion Paper N.73

Digitized version prepared by the Cuurricului Resource Center (CRC)
CEU Budapest, Hungary
Revised: May 1996


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