State provision of “merit goods” and of narrowly targeted cash payments has higher priority than large universal cash grants. Analysis of the Swedish budget shows that advanced countries do not have the taxing capacity to do both at once. Other problems with cash payments schemes include the disincentive to work for pay, reducing taxpaying capacity, and retrograde effects on gender equality. After the achievement of a welfare state, rises over time in productivity may gradually open up room in the national (...) budget for universal cash payments. (shrink)

Ethological farm programs as they exist in Switzerland are compared with environmental farm programs in respect of demand and supply. Because animal welfare is not a public good but rather a relation that causes psychological externalities, the demand for animal welfare has a different standing in economic theory than the demand for a clean environment. The supply of animal welfare by farmers, however, largely follows the patterns known from the delivery of environmental goods. Farm size, age and education, and also (...) family size and capital intensity are influencing variables. The paper concludes that the design of ethological farm programs should be based on broad public discussions as described by deliberation theorists rather than willingness-to-pay studies. (shrink)