A reexamination of welfare states from an institutional perspective

Abstract

Purpose

To explain a fiscal rule that functions in a different way from a constitutional ideal of a welfare state, as Japan's case, and to give a literary examination of that kind of thoughts in modern economics and theory of public finance.

Design/methodology/approach

Compares neo‐institutional economics and fiscal sociology about the role of a government, using recent fiscal data of developed countries.

Findings

For neo‐institutional economics it is difficult to explain “welfare state” that substitutes the role of a family because the approach can only explain a complementary relationship of organizations in higher levels with lower organizations.

Practical implications

Points out that neo‐institutional economics should be examined by a historical formation of each rule and a real legal system in each country.

Originality/value

Discusses institutional economics and fiscal sociology from an aspect of possibility of applying to the field of public finance and social welfare.

Citation

Sasaki, N. (2006), "A reexamination of welfare states from an institutional perspective", Journal of Economic Studies, Vol. 33 No. 3, pp. 189-205. https://doi.org/10.1108/01443580610680455