Den solidariska lönepolitikens betydelse för strukturomvandlingen och tillväxten i dagens Sverige - teorier och belysningar
Den solidariska lonepolitikens betydelse for strukturomvandlingen och tillvaxten i dagens Sverige... more Den solidariska lonepolitikens betydelse for strukturomvandlingen och tillvaxten i dagens Sverige - teorier och belysningar
The macroeconomic principles behind the Swedish model were developed by two trade union economist... more The macroeconomic principles behind the Swedish model were developed by two trade union economists, Gösta Rehn and Rudolf Meidner, shortly after World War II. The Rehn-Meidner model respresents a unique third way between keynesianism and monetarism in its approach to combine full employment programs, a tight fiscal policy and wage policy of solidarity. This essay demonstrates the logic and comprehensive character of the Rehn-Mediner model, as well as the originality of its underlying economic theory. It aslo analyses the application of the model in Sweden during the post-war period. In the 1980s, the means of the model were largely abandoned. In the 1990s, the governments generally adopted the means of the model, but they were unable to combine low inflation with full employment. A renewed interest in the Rehn-Meidner model may emerge from recent declarations by the EU to prioritise full employment without giving up the objective of price stability.
A Swedish economic policy was developed by two trade union economists shortly after the Second Wo... more A Swedish economic policy was developed by two trade union economists shortly after the Second World War. The Rehn-Meidner model recommends the use of selective employment policy measures, a tight macroeconomic policy and a wage policy of solidarity to combine full employment and equity with price stability and economic growth. Although never consistently applied in Sweden, it is possible to distinguish a golden age for the Rehn-Meidner model from the late 1950s to the early 1970s. In the 1970s and 1980s, Swedish governments abandoned the restrictive macroeconomic means of the Rehn-Meidner programme and decentralised wage bargaining obstructed the wage policy of solidarity. In the 1990s and 2000s a new economic-policy regime could not meet the strong requirement of full employment in the Rehn-Meidner model but it satisfied the model's priority of selective employment policy within the framework of a restrictive macroeconomic policy.
A Swedish economic policy was developed by two trade union economists shortly after the Second Wo... more A Swedish economic policy was developed by two trade union economists shortly after the Second World War. The Rehn-Meidner model recommends the use of selective employment policy measures, a tight macroeconomic policy and a wage policy of solidarity to combine full employment and equity with price stability and economic growth. Although never consistently applied in Sweden, it is possible to distinguish a golden age for the Rehn-Meidner model from the late 1950s to the early 1970s. In the 1970s and 1980s, Swedish governments abandoned the restrictive macroeconomic means of the Rehn-Meidner programme and decentralised wage bargaining obstructed the wage policy of solidarity. In the 1990s and 2000s a new economic-policy regime could not meet the strong requirement of full employment in the Rehn-Meidner model but it satisfied the model's priority of selective employment policy within the framework of a restrictive macroeconomic policy.
This paper provides a survey on studies that analyze the macroeconomic effects of intellectual pr... more This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection as well as empirical evidence on the effects of patent rights. Then, the second part considers the international aspects of IPR protection. In summary, this paper draws the following conclusions from the literature. Firstly, different patent policy instruments have different effects on R&D and growth. Secondly, there is empirical evidence supporting a positive relationship between IPR protection and innovation, but the evidence is stronger for developed countries than for developing countries. Thirdly, the optimal level of IPR protection should tradeoff the social benefits of enhanced innovation against the social costs of multiple distorti...
The Stockholm-school member Erik Lundberg is the economist who devoted most attention to the econ... more The Stockholm-school member Erik Lundberg is the economist who devoted most attention to the economic theory and policy of the Swedish postwar model. The established view is that Lundberg was a steadfast opponent of the so-called Rehn- Meidner model, an economic and wage policy program developed by two Swedish trade-union economists in the early postwar years. The model recommends fiscal policies in the medium term, extensive labor market programs and wage policies of solidarity to simultaneously obtain price stability, full employment, income equality and high growth. This article maintains that Lundberg shared many of the premises of the Rehn-Meidner model already at the beginning of his debate with Gosta Rehn in the early 1950s. Furthermore, in their debate, Lundberg approached Rehn’s policy program and underlying theory of the working of the Swedish economy. Despite his ideological qualms, Lundberg’s ambiguous attitude to the Rehn-Meidner model turned into a complete adoption of...
The macroeconomic principles behind the Swedish model were developed by two trade union economist... more The macroeconomic principles behind the Swedish model were developed by two trade union economists, Gösta Rehn and Rudolf Meidner, shortly after World War II. The model’s economic and wage policy represents a unique third way between keynesianism and monetarism in its approach to combine full employment and growth with price stability and equity. This essay describes the content and economic foundation of the Rehn-Meidner model and evaluates its validity in the light of later theoretical and empirical work. With some exceptions, the model is either in harmony with or a serious challenge to current thinking about employment, inflation and growth. The model’s main contribution to economics is its dynamic description of wage formation, giving room for both competitive forces, X-inefficient firms and wage setting phenomena such as relative wage preferences, labour market policy and a wage policy of fairness. The model also makes a valuable contribution to modern growth economics by inco...
The Father of the Swedish Model in Memory of Gosta Rehn (1913-96)
Economic and Industrial Democracy, 1997
Gosta Rehn is often called 'the father of the Swedish Model'. As a source of ideas, a deb... more Gosta Rehn is often called 'the father of the Swedish Model'. As a source of ideas, a debater and creator of opinion, Rehn contributed to the development and application in Sweden of a unique model for economic policy in the years following the Second World War. The fact that Sweden had a Social Democratic government at the time, combined with the part played by the LO (the Swedish Trades Union Congress) in promoting and shaping a policy of stabilization and welfare, helped to ensure widespread acceptance of Rehn's ideas in the early postwar years.
Economists and politicians in Sweden stated in the early 1990s that devaluations of the country&#... more Economists and politicians in Sweden stated in the early 1990s that devaluations of the country's currency had lessened the external pressure on manufacturing and led to a delay in structural change and rationalizations. The theory of transformation pressure generalizes the idea that productivity growth in firms is promoted by intense competition, cost pushes and low product demand. The main challenge faced by such a theory is to explain why it seems that an immediate threat is needed to get a productive response from firms. Three separate explanations are presented here emphasizing either the value of waiting to get more information about potential threats, the irrational tendency to ignore threats until they show up or the stimulation of individual creativity when firms are put under real pressure. But productivity growth is not always promoted by tight external circumstances. Growth may be maximized if pressure in each period is moderate or if periods with strong pressure are...
A theory of transformation pressure was developed in Sweden in the 1990s which suggested that str... more A theory of transformation pressure was developed in Sweden in the 1990s which suggested that structural changes, rationalisations and innovations are stimulated by profit crises, arising, for example, from negative demand shocks and restrictive economic policies. Firms will then either become more creative or abandon an overconfident, risk-prone and irrational status quo strategy. A qualified theory states that productivity will increase as external pressures become stronger but only up to a certain point. A competing qualified theory maintains that productivity is maximised if periods of hard pressure are succeeded by periods of financial and technical consolidation, scale advantages and weaker demands for defensive actions to raise productivity.
The European Journal of the History of Economic Thought, 2011
A wage and economic policy programme for full employment, price stability, growth and equity was ... more A wage and economic policy programme for full employment, price stability, growth and equity was developed by two Swedish trade-union economists in the early postwar period. A restrictive macroeconomic policy, a wages policy of solidarity and an active labour market policy are the cornerstones of the Rehn-Meidner model. The model was influenced by Hans Singer's analysis of the fallacies of incomes policy under full employment conditions. However it is difficult to find equivalences in contemporary economics to the model's composition of means and goals, functional relationships or to its emphasis on the role of actual profits in wage formation.
Den solidariska lönepolitikens betydelse för strukturomvandlingen och tillväxten i dagens Sverige - teorier och belysningar
Den solidariska lonepolitikens betydelse for strukturomvandlingen och tillvaxten i dagens Sverige... more Den solidariska lonepolitikens betydelse for strukturomvandlingen och tillvaxten i dagens Sverige - teorier och belysningar
The macroeconomic principles behind the Swedish model were developed by two trade union economist... more The macroeconomic principles behind the Swedish model were developed by two trade union economists, Gösta Rehn and Rudolf Meidner, shortly after World War II. The Rehn-Meidner model respresents a unique third way between keynesianism and monetarism in its approach to combine full employment programs, a tight fiscal policy and wage policy of solidarity. This essay demonstrates the logic and comprehensive character of the Rehn-Mediner model, as well as the originality of its underlying economic theory. It aslo analyses the application of the model in Sweden during the post-war period. In the 1980s, the means of the model were largely abandoned. In the 1990s, the governments generally adopted the means of the model, but they were unable to combine low inflation with full employment. A renewed interest in the Rehn-Meidner model may emerge from recent declarations by the EU to prioritise full employment without giving up the objective of price stability.
A Swedish economic policy was developed by two trade union economists shortly after the Second Wo... more A Swedish economic policy was developed by two trade union economists shortly after the Second World War. The Rehn-Meidner model recommends the use of selective employment policy measures, a tight macroeconomic policy and a wage policy of solidarity to combine full employment and equity with price stability and economic growth. Although never consistently applied in Sweden, it is possible to distinguish a golden age for the Rehn-Meidner model from the late 1950s to the early 1970s. In the 1970s and 1980s, Swedish governments abandoned the restrictive macroeconomic means of the Rehn-Meidner programme and decentralised wage bargaining obstructed the wage policy of solidarity. In the 1990s and 2000s a new economic-policy regime could not meet the strong requirement of full employment in the Rehn-Meidner model but it satisfied the model's priority of selective employment policy within the framework of a restrictive macroeconomic policy.
A Swedish economic policy was developed by two trade union economists shortly after the Second Wo... more A Swedish economic policy was developed by two trade union economists shortly after the Second World War. The Rehn-Meidner model recommends the use of selective employment policy measures, a tight macroeconomic policy and a wage policy of solidarity to combine full employment and equity with price stability and economic growth. Although never consistently applied in Sweden, it is possible to distinguish a golden age for the Rehn-Meidner model from the late 1950s to the early 1970s. In the 1970s and 1980s, Swedish governments abandoned the restrictive macroeconomic means of the Rehn-Meidner programme and decentralised wage bargaining obstructed the wage policy of solidarity. In the 1990s and 2000s a new economic-policy regime could not meet the strong requirement of full employment in the Rehn-Meidner model but it satisfied the model's priority of selective employment policy within the framework of a restrictive macroeconomic policy.
This paper provides a survey on studies that analyze the macroeconomic effects of intellectual pr... more This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection as well as empirical evidence on the effects of patent rights. Then, the second part considers the international aspects of IPR protection. In summary, this paper draws the following conclusions from the literature. Firstly, different patent policy instruments have different effects on R&D and growth. Secondly, there is empirical evidence supporting a positive relationship between IPR protection and innovation, but the evidence is stronger for developed countries than for developing countries. Thirdly, the optimal level of IPR protection should tradeoff the social benefits of enhanced innovation against the social costs of multiple distorti...
The Stockholm-school member Erik Lundberg is the economist who devoted most attention to the econ... more The Stockholm-school member Erik Lundberg is the economist who devoted most attention to the economic theory and policy of the Swedish postwar model. The established view is that Lundberg was a steadfast opponent of the so-called Rehn- Meidner model, an economic and wage policy program developed by two Swedish trade-union economists in the early postwar years. The model recommends fiscal policies in the medium term, extensive labor market programs and wage policies of solidarity to simultaneously obtain price stability, full employment, income equality and high growth. This article maintains that Lundberg shared many of the premises of the Rehn-Meidner model already at the beginning of his debate with Gosta Rehn in the early 1950s. Furthermore, in their debate, Lundberg approached Rehn’s policy program and underlying theory of the working of the Swedish economy. Despite his ideological qualms, Lundberg’s ambiguous attitude to the Rehn-Meidner model turned into a complete adoption of...
The macroeconomic principles behind the Swedish model were developed by two trade union economist... more The macroeconomic principles behind the Swedish model were developed by two trade union economists, Gösta Rehn and Rudolf Meidner, shortly after World War II. The model’s economic and wage policy represents a unique third way between keynesianism and monetarism in its approach to combine full employment and growth with price stability and equity. This essay describes the content and economic foundation of the Rehn-Meidner model and evaluates its validity in the light of later theoretical and empirical work. With some exceptions, the model is either in harmony with or a serious challenge to current thinking about employment, inflation and growth. The model’s main contribution to economics is its dynamic description of wage formation, giving room for both competitive forces, X-inefficient firms and wage setting phenomena such as relative wage preferences, labour market policy and a wage policy of fairness. The model also makes a valuable contribution to modern growth economics by inco...
The Father of the Swedish Model in Memory of Gosta Rehn (1913-96)
Economic and Industrial Democracy, 1997
Gosta Rehn is often called 'the father of the Swedish Model'. As a source of ideas, a deb... more Gosta Rehn is often called 'the father of the Swedish Model'. As a source of ideas, a debater and creator of opinion, Rehn contributed to the development and application in Sweden of a unique model for economic policy in the years following the Second World War. The fact that Sweden had a Social Democratic government at the time, combined with the part played by the LO (the Swedish Trades Union Congress) in promoting and shaping a policy of stabilization and welfare, helped to ensure widespread acceptance of Rehn's ideas in the early postwar years.
Economists and politicians in Sweden stated in the early 1990s that devaluations of the country&#... more Economists and politicians in Sweden stated in the early 1990s that devaluations of the country's currency had lessened the external pressure on manufacturing and led to a delay in structural change and rationalizations. The theory of transformation pressure generalizes the idea that productivity growth in firms is promoted by intense competition, cost pushes and low product demand. The main challenge faced by such a theory is to explain why it seems that an immediate threat is needed to get a productive response from firms. Three separate explanations are presented here emphasizing either the value of waiting to get more information about potential threats, the irrational tendency to ignore threats until they show up or the stimulation of individual creativity when firms are put under real pressure. But productivity growth is not always promoted by tight external circumstances. Growth may be maximized if pressure in each period is moderate or if periods with strong pressure are...
A theory of transformation pressure was developed in Sweden in the 1990s which suggested that str... more A theory of transformation pressure was developed in Sweden in the 1990s which suggested that structural changes, rationalisations and innovations are stimulated by profit crises, arising, for example, from negative demand shocks and restrictive economic policies. Firms will then either become more creative or abandon an overconfident, risk-prone and irrational status quo strategy. A qualified theory states that productivity will increase as external pressures become stronger but only up to a certain point. A competing qualified theory maintains that productivity is maximised if periods of hard pressure are succeeded by periods of financial and technical consolidation, scale advantages and weaker demands for defensive actions to raise productivity.
The European Journal of the History of Economic Thought, 2011
A wage and economic policy programme for full employment, price stability, growth and equity was ... more A wage and economic policy programme for full employment, price stability, growth and equity was developed by two Swedish trade-union economists in the early postwar period. A restrictive macroeconomic policy, a wages policy of solidarity and an active labour market policy are the cornerstones of the Rehn-Meidner model. The model was influenced by Hans Singer's analysis of the fallacies of incomes policy under full employment conditions. However it is difficult to find equivalences in contemporary economics to the model's composition of means and goals, functional relationships or to its emphasis on the role of actual profits in wage formation.
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