Explaining Welfare State Survival: The Role of Economic Freedom and Globalization
AbstractUsing the economic freedom index and the newly developed KOF-index of globalization, it is shown that the Scandinavian welfare states have experienced faster, bigger and more consistent increases in these areas, compared to the smaller European and the so called liberal welfare states. The market economy and globalization hence do not pose threats to these welfare states, but are instead neglected factors in explaining their survival and good economic performance. Big government decreases the economic freedom index by definition, but the welfare states compensate in other areas, such as legal structure and secure property rights.
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Bibliographic InfoPaper provided by The Ratio Institute in its series Ratio Working Papers with number 101.
Length: 23 pages
Date of creation: 02 Jun 2006
Date of revision:
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Welfare state; growth; property rights; globalization; taxation; economic freedom;
Find related papers by JEL classification:
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
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