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Designing the 21st Century Welfare State

Objective

This proposal aims to measure, using a combination of novel economic theory and empirical evidence, how
advanced economies treat their most vulnerable members, determine whether existing welfare programs are
cost-effective, identify room for policy improvements, and ultimately, provide a scientific basis for
evaluating the costs and benefits of the welfare state. Formally, the project develops a theoretical and
quantitative framework for designing and evaluating social insurance policies that protect households against
economic and other life-cycle risks, with particular emphasis on the trade-off between insurance provision or
redistribution towards the needy, and incentives to actively participate in economic activity through labour
supply, consumption and savings decisions.
On the theoretical side, the project develops new methods for analysing and solving an almost unrestricted
class of dynamic mechanism design or social insurance problems, to provide sharp characterizations of
optimal policies that can be tightly connected to empirical evidence. On the empirical side, the project
leverages a rich novel data set of very low-income households in France to understand the determinants and
dynamics of extreme poverty and assess the effectiveness of existing welfare policies. Combining models
with evidence allows us to assess formally the costs and benefits of existing welfare programs, such as social
housing, food stamps, universal health care, child benefits, subsistence income transfers or major social
insurance programs.

Fields of science (EuroSciVoc)

CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.

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Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

HORIZON-ERC - HORIZON ERC Grants

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2025-ADG

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Host institution

FONDATION JEAN JACQUES LAFFONT,TOULOUSE SCIENCES ECONOMIQUES
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 778 750,00
Address
5E ETAGE, 1 ESP DE L'UNIVERSITE
31080 Toulouse
France

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Region
Occitanie Midi-Pyrénées Haute-Garonne
Activity type
Research Organisations
Links
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

No data

Beneficiaries (2)