Eurosclerosis and the sclerosis of objectivity: on the role of values among economic policy experts

Article Abstract:

Economists acting as policy advocates in Sweden have proffered that the country's welfare state is leading to a form of 'sclerosis' that is undermining economic performance. However, these experts, led by the Lindbeck Commission, have failed to sufficiently evaluate their evidences backing their claim. Moreover, they have not been quite objective in their recommendations because their diagnosis that Sweden was experiencing an economic 'sclerosis' was an ideological analysis that is not grounded on empirical interpretation.

Practice, Economists

---

Why Sweden's welfare state needed reform

Article Abstract:

International cross-section evidence does not support the claim that Sweden's welfare state is damaging to economic growth. However, the welfare state in the country needs reform for several reasons that go beyond the evidence of relative growth performance. According to microeconomic efficiency theory, the country should institute reforms in the legislation regarding the labor market, unemployment benefit and the deadweight loss resulting from taxation.

Welfare reform

---

On the benefits from rigid labour markets: norms, market failures, and social insurance

Article Abstract:

Labor market deregulation is not the only factor that explains the high unemployment rate for Europe. Social customs have been established as independent and vital factors that determine wage rigidity. An efficiency gain or institutional benefit is likewise possible from a rigid or compressed wage structure. The relationship between labor market institutions and openness in OECD countries supports greater rigidity due to the globalization process.

Europe, Economic aspects, Employment, Labor market, Organization for Economic Cooperation and Development, Manpower policy

Similar abstracts:

• Abstracts: Understanding the supply decisions of nonprofits: modelling the location of private schools. Did installed base give an incumbent any (measurable) advantages in federal computer procurement?
• Abstracts: Further reflections on the behavioral norms of Islamic economics. The logic of financial westernization in the Middle East
• Abstracts: Beyond "Miracles" and total factor productivity: the Singapore experience. The strategic dimension of the "East Asian Developmental States."
• Abstracts: Institutional economics and the evolutionary metaphor. Patterned variation: the role of psychological dispositions in social and institutional evolution
• Abstracts: Keynesian involuntary unemployment and sticky nominal wages. Nominal rigidities in wage setting by rational trade unions

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.