Fic, Tatiana; Ghate, Chetan - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2004
political economy model of economic growth and the welfare state in which both variables are non-linearly related and jointly en … suggests that expanding welfare state regimes are associated with low economic growth regimes, while contracting welfare state …Can a growing welfare state induce a regime switch in the growth rate of an econ-omy? This paper constructs a dynamic …