Ludwig Erhard ifo Center for Social Market Economy and Institutional Economics

The social market economy is a widely recognized economic and social model. It stands for the combination of economic efficiency with social balance and is therefore considered a model of success beyond Germany. The Ludwig Erhard ifo Center for Social Market Economy and Institutional Economics investigates how markets and government action should be designed to meet new challenges. Those challenges include demographic change, digitalization, climate change, and economic inequality. The key questions are: How can as many people as possible take advantage of the opportunities offered by a market economy? What influences people’s attitudes regarding the economic system and economic policies? How should incentives in science and economic policy advice be designed to improve the basis for decisions made by governmental and economic institutions?