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Politics and Fiscal Policy Under Lemass: A Theoretical Appraisal

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  • Barry, Frank

    (Trinity College Dublin)

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    Abstract

    Lemass rejected Whitaker’s recommendations that direct taxes be reduced and public investment shifted from social to productive areas. This was arguably done for political reasons and because Lemass believed that it might be possible to establish a social partnership deal of the type that Eichengreen has argued to have played a crucial role in post-war European convergence on US living standards. Such a bargain could not be reached under Ireland’s industrial-relations system, however. The present paper contrasts the two systems and shows the adverse employ - ment, investment and growth effects that such attempts would have had in Ireland.

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    File URL: http://www.esr.ie/Vol40_4/Barry.pdf
    File Function: First version, 2009
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    Bibliographic Info

    Article provided by Economic and Social Studies in its journal Economic and Social Review.

    Volume (Year): 40 (2009)
    Issue (Month): 4 ()
    Pages: 393-406

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    Handle: RePEc:eso:journl:v:40:y:2009:i:4:p:393-406

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    1. Roche, William K., 2009. "Social Partnership - From Lemass to Cowen," The Economic and Social Review, Economic and Social Studies, vol. 40(2), pages 183–205.
    2. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
    3. Hall, Robert E & Lilien, David M, 1979. "Efficient Wage Bargains under Uncertain Supply and Demand," American Economic Review, American Economic Association, vol. 69(5), pages 868-79, December.
    4. Daveri, Francesco & Tabellini, Guido, 1997. "Unemployment, Growth and Taxation in Industrial Countries," CEPR Discussion Papers 1681, C.E.P.R. Discussion Papers.
    5. Oswald, Andrew J, 1985. " The Economic Theory of Trade Unions: An Introductory Survey," Scandinavian Journal of Economics, Wiley Blackwell, vol. 87(2), pages 160-93.
    6. Frank Barry, 2003. "Economic Integration and Convergence Processes in the EU Cohesion Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 41(5), pages 897-921, December.
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