Economic Growth and the Swedish Model
AbstractWe examine the growth performance of Sweden in the post-World War II period, focusing on explaining the relative decline of economic growth in Sweden since the early 1970's. The hypothesis that the relative decline is a consequence of productivity catch-up is rejected. A number of potential `ultimate' causes behind the slowdown are explored. An increasingly inefficient process of capital formation; a shrinking share of the economy being exposed to international competition; long-run negative effects of activist stabilization policies; rapid growth of the public sector; deteriorating incentives for human capital formation; and weak incentives for implementing the results of R&D efforts are all part of the story. The evidence suggests that the incentive structure created by `the Swedish model' made Sweden less successful in adapting to the shocks of the 1970's and 1980's than other OECD countries.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 901.
Date of creation: Mar 1994
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Other versions of this item:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
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- Hansson, Pontus & Jonung, Lars, 1997.
"Finance and economic growth: the case of Sweden 1834-1991,"
Research in Economics,
Elsevier, vol. 51(3), pages 275-301, September.
- Hansson, Pontus & Jonung, Lars, 1997. "Finance and Economic Growth. The Case of Sweden 1834-1991," Working Paper Series in Economics and Finance 176, Stockholm School of Economics.
- Lars Jonung, 2010.
"Financial Crisis and Crisis Management in Sweden. Lessons for Today,"
- Jonung, Lars, 2009. "Financial Crisis and Crisis Management in Sweden. Lessons for Today," ADBI Working Papers 165, Asian Development Bank Institute.
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