Explaining welfare spending

Welfare expenditures are difficult to explain within a pure public choice-framework. In this article, I shall argue that the difficulties may be resolved by assuming that the main purpose of welfare schemes is to provide the electorate — in their capacity of different risk categories — with insurance against various social risks, rather than to redistribute economic resources towards weak and destitute groups in society. This solution not only explains the scope of existing welfare arrangements, but may also hold the key to an explanation as to how public welfare policies change and evolve across time.