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Chapter 4: The Swedish Model

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  • Lars Calmfors
  • Giancarlo Corsetti
  • John Hassler
  • Gilles Saint-Paul
  • Hans-Werner Sinn
  • Jan-Egbert Sturm
  • Ákos Valentinyi
  • Xavier Vives

Abstract

This chapter tries to explain the strong performance of public finances in Sweden and looks at what lessons for other countries can be drawn. Section 4.2 reviews the development of public finances over time. Section 4.3 begins by surveying the research on why fiscal policy in modern democracies may be subject to a deficit bias and then discusses how the fiscal framework established in Sweden may have helped to contain such tendencies. The importance of output growth to fiscal consolidation is highlighted in Section 4.4. Section 4.5 sums up the conclusions.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/ZS/ZS-EEAG_Report/zs-eeag-2012/eeag_report_chap4_2012.pdf
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Bibliographic Info

Article provided by CESifo Group Munich in its journal EEAG Report on the European Economy.

Volume (Year): (2012)
Issue (Month): (02)
Pages: 99-114

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Handle: RePEc:ces:eeagre:v::y:2012:i::p:99-114

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  1. Tabellini, Guido & Alesina, Alberto, 1990. "A Positive Theory of Fiscal Deficits and Government Debt," Scholarly Articles 3612769, Harvard University Department of Economics.
  2. Mark Hallerberg & Jürgen von Hagen, 1999. "Electoral Institutions, Cabinet Negotiations, and Budget Deficits in the European Union," NBER Chapters, in: Fiscal Institutions and Fiscal Performance, pages 209-232 National Bureau of Economic Research, Inc.
  3. Alberto Alesina & Roberto Perotti, 1995. "Fiscal Expansions and Fiscal Adjustments in OECD Countries," NBER Working Papers 5214, National Bureau of Economic Research, Inc.
  4. Francesca Castellani & Xavier Debrun, 2005. "Designing Macroeconomic Frameworks: A Positive Analysis of Monetary and Fiscal Delegation," International Finance, Wiley Blackwell, vol. 8(1), pages 87-117, 07.
  5. Michael D. Bordo & Agnieszka Markiewicz & Lars Jonung, 2011. "A Fiscal Union for the Euro: Some Lessons from History," NBER Working Papers 17380, National Bureau of Economic Research, Inc.
  6. Alt, James E. & Lassen, David Dreyer, 2006. "Fiscal transparency, political parties, and debt in OECD countries," European Economic Review, Elsevier, vol. 50(6), pages 1403-1439, August.
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