ABSTRACT
This chapter concerns the choices open to governments in devising financial arrangements which are designed to fulfil the objectives of the 'welfare state', or, more particularly, of the social security element in it. I distinguish between four choices:
The choice between an absolute or relative poverty line.
The choice between universality or selectivity in the provision of social benefits.
The choice between types of benefit provision — tax allowances, money transfers and communal consumption.
The choice between general taxation and earmarked contributions as a method for financing benefits.
