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The Survival of the Nordic Welfare State and Social Trust

  • Urs Steiner Brandt

    (Department of Environmental and Business Economy, University of Southern Denmark)

  • Gert Tinggaard Svendsen

    (Department of Political Science, Aarhus University)

Why does free riding not escalate in the universal Nordic welfare state? How is it possible to maintain such a cooperative equilibrium where most people tend to cooperate? Our model suggests that the “missing link” is the accumulated stock of cooperation norms in terms of social trust. Arguably, a sufficient number of norm enforcers facilitate this unique collective insurance system.

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Article provided by Nordic Journal of Political Economy in its journal Nordic Journal of Political Economy.

Volume (Year): 36 (2010)
Issue (Month): ()
Pages: 1

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Handle: RePEc:noj:journl:v:36:y:2010:p:1
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