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The Swedish Economic Model

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Author Info
Karl Aiginger (WIFO)

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Abstract

The remarkable success of Sweden over the past 15 years has come after decades of sluggish growth, during which Sweden managed to lose its substantial lead in per-capita income. This substantiates the view that welfare cost and high taxes reduce growth and endanger competitiveness. Since then, however, Sweden has engaged in a remarkable strategy of reforming the budget process, increasing the flexibility of its labour market and boosting investment in the future. Incentives have been changed to achieve greater flexibility and to adapt to changes resulting from globalisation.

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Publisher Info
Paper provided by WIFO in its series WIFO Working Papers with number 302.

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Length: 20 pages
Date of creation: 16 Oct 2007
Date of revision:
Handle: RePEc:wfo:wpaper:y:2007:i:302

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Related research
Keywords: Welfare models corporatism economic performance competitiveness

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. Peter Plougmann & Per Kongshøj Madsen, 2002. "Flexibility, Employment Development and Active Labour Market Policy in Denmark and Sweden in the 1990s," SCEPA Working Papers 2002-04, Schwartz Center for Economic Policy Analysis (SCEPA), New School University. [Downloadable!]
  2. Karl Aiginger & Michael Landesmann, 2002. "Competitive Economic Performance: The European View," WIFO Working Papers 179, WIFO. [Downloadable!]
  3. Karl Aiginger, 2004. "The three tier strategy followed by successful European countries in the 1990s," International Review of Applied Economics, Taylor and Francis Journals, vol. 18(4), pages 399-422, October. [Downloadable!] (restricted)
  4. Karl Aiginger & Alois Guger, 2005. "The European Socio-Economic Model. Differences to the USA and Changes over Time," WIFO Working Papers 266, WIFO. [Downloadable!]
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