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The Swedish Economic Model

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  • Karl Aiginger

    (WIFO)

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.

Suggested Citation

  • Karl Aiginger, 2007. "The Swedish Economic Model," WIFO Working Papers 302, WIFO.
  • Handle: RePEc:wfo:wpaper:y:2007:i:302
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    File URL: https://www.wifo.ac.at/wwa/pubid/30260
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    References listed on IDEAS

    as
    1. Karl Aiginger & Michael Landesmann, 2002. "Competitive Economic Performance: The European View," WIFO Working Papers 179, WIFO.
    2. Karl Aiginger & Alois Guger, 2005. "The European Socio-Economic Model. Differences to the USA and Changes over Time," WIFO Working Papers 266, WIFO.
    3. Karl Aiginger, 2004. "The three tier strategy followed by successful European countries in the 1990s," International Review of Applied Economics, Taylor & Francis Journals, vol. 18(4), pages 399-422.
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    Cited by:

    1. Marcel Boyer & Anne Catherine Faye, 2011. "Assessment of International Economic Policy Models and Measures: Lessons for Canada," CIRANO Working Papers 2011s-19, CIRANO.

    More about this item

    Keywords

    Welfare models; corporatism; economic performance; competitiveness;

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