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The Municipal Takeover of the School System

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  • Lakomaa, Erik

    ()
    (Dept. of Business Administration, Stockholm School of Economics)

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    Abstract

    In 1991 the Swedish school system was transferred from the State (the national level) to the municipalities. The reform increased the size of the municipal sector by one fifth, making the reform one of the largest in recent history. Despite broad support for the reform in Parliament, the process was very slow and discussions went on for some twenty years before the final decision was made. Traditional economic theories might be less suitable to explain both the slow process and the outcome of the reform. In this paper insights from economic psychology are used as remedy for the lack of explanatory power of traditional economic theories. The paper covers the political process that preceded the reform, an evaluation of the economic consequences of the reform and an attempt to explain some of the particularities of the reform using economic-psychological theories.

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    File URL: http://swoba.hhs.se/hastba/papers/hastba2011_002.pdf
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    Bibliographic Info

    Paper provided by Stockholm School of Economics in its series Working Paper Series in Business Administration with number 2011:2.

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    Length: 44 pages
    Date of creation: 11 Mar 2009
    Date of revision: 08 May 2011
    Handle: RePEc:hhb:hastba:2011_002

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    Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, SE 113 83 Stockholm, Sweden
    Phone: +46-(0)8-736 90 00
    Fax: +46-(0)8-31 01 57
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    Web page: http://www.hhs.se/
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    Keywords: Case studies - Sweden; Municipalities - Decision Making; Economic Psychology; Schools;

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    1. Leiser, David & Azar, Ofer H. & Hadar, Liat, 2008. "Psychological construal of economic behavior," Journal of Economic Psychology, Elsevier, vol. 29(5), pages 762-776, November.
    2. Hartman, Raymond S & Doane, Michael J & Woo, Chi-Keung, 1991. "Consumer Rationality and the Status Quo," The Quarterly Journal of Economics, MIT Press, vol. 106(1), pages 141-62, February.
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