Chapter 19: Rents in a welfare state
This chapter describes rents in Denmark, a developed welfare state in which the private sector is sharply delimitated and kept efficient by secure property rights and markets including free trade. In the public sector, rents in the form of excess costs of provision are difficult to measure, but in a number of cases as described in this chapter, the rents are revealed. The implicit welfare coalition, defined as voters receiving their income from the public budget, is the majority, placing the median voter within the welfare coalition. Rents are created and protected by the welfare coalition. Non-governmental organizations have been coopted to serve large welfare expenditure programs that benefit the welfare coalition.
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