A note on generalized stable sets

A solution concept is introduced that is able to deal with cyclic relations. The concept is a generalization of the Von Neumann-Morgenstern solution concept of stable set and is therefore called the concept of generalized stable set. Its point of departure is the transitive closure of an asymmetric relation. A characterization theorem and an existence theorem are presented.The author would like to thank Thom Bezembinder, Maurice Salles and Harrie de Swart for their useful comments.     

Balancing work and welfare: activation and flexicurity policies in The Netherlands, 1980–2000

As a result of the flexibilisation of labour and the trend towards the 'activating welfare state', social policies show an increasing interconnection of work and welfare issues. The Netherlands is no exception. It is generally believed that the Dutch welfare state is successfully activating its unemployed labour potential (often referred to as the 'Dutch Miracle'), and that flexible and part-time work is protected by adequate 'flexicurity'. This article critically reviews Dutch activation and flexicurity policies. It concludes that there is still more unemployment than the miracle-story suggests; that important target groups of activation policies have not profited from 'the miracle'; that part-time workers have sufficient social protection but that social security for flex-workers still needs major improvements, despite favourable adjustments of labour law.     

Taxation and tax resistance

In recent years social and behavioral sciences have extended their interest to topics not normally thought to be within their province. One of these topics of current interest is tax resistance, an old problem indeed that continues to plague the modern welfare state. People are perfectly willing to benefit from government services but increasingly restive about paying for them. How to cope with this tax-welfare backlash is a crucial problem for all democratic governments. Growing government deficits, for example, may in part be due to the erosion of the tax base which results from a shift to unobserved activities. The main purpose of this article is to offer a theoretical framework for the definition and explanation of tax resistance. To this end, research findings about tax compliance and tax mentality as well as theoretical work on free-riding, exchanging and gift-giving will be presented and discussed.     

Empirical evidence on preference formation

To explain the empirical fact that different individuals have different individual welfare functions, a theory of preference formation has been developed by the first author. The theory essentially states that an individual's welfare function is identical to the distribution of consumption patterns the individual has observed over time. This includes both his own consumption and the consumption by others in his social reference group. The paper reviews the evidence collected with respect to directly measured individual welfare functions in Europe. Evidence obtained in related research by economists, psychologists, and sociologists is also discussed.