14th Annual Lecture of the Geneva Association: Uncertainty under the Welfare State - Policy-induced Risk -

Welfare state arrangements not only mitigate income risk, they also create new types of risks; we may call them “policy-induced risks”. In some cases, market risk is replaced by the risk of changes in politically determined rules, “rule instability” for short. In other cases, welfare state arrangements change the character of market risk, and may even increase it. I call this “policy-induced market risk”