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  • 1.
    Flam, Harry
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Turkey and the EU: Politics and Economics of Accession2003Report (Other academic)
    Abstract [en]

    This paper identifies and discusses important political and economic aspects of Turkish accession to the EU. Under the present rules, Turkey’s size would give it the greatest number of votes within twenty years and its low income and dependence on agriculture the largest net transfer from other members. Free labor mobility would lead to substantial migration to the present EU; the Turkish immigrant population in Germany may increase from 2 to 3.6 million in thirty years. Most of the economic effects will be felt by Turkey, particularly in agriculture. The main obstacles to accession are not economic, but political, however. Historical experience makes it difficult for Turkey to eliminate the decisive political role of the military, to give Kurds and other minorities cultural rights and uphold basic human rights; these issues are perceived to threaten national unity and territorial integrity. Turkish membership is resisted by many in the EU because Turkey is not considered to be part of Europe geographically and culturally.

  • 2.
    Lindbeck, Assar
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    An Essay on Welfare State Dynamics2003Report (Other academic)
    Abstract [en]

    The expansion of welfare-state arrangements is seen as the result of dynamic interaction between market behaviour and political behaviour, often with considerable time lags, sometimes generating either virtuous or vicious circles. Such interaction may also involve induced (endogenous) changes in social norms and political preferences. Moreover, the internationalization process not only limits the ability of national governments to redistribute income; they also increase the political demands for international mobility of welfare-state benefits and social services. I also discuss the dynamics of reforms and retreats of welfare-state arrangements.

  • 3.
    Lindbeck, Assar
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Improving the Performance of the European Social Model: The Welfare State over the Life Cycle2003Report (Other academic)
    Abstract [en]

    The achievements of social-welfare arrangements in Western Europe are well known: considerable income security, relatively little poverty and, in some countries, ample supply of social services. But there are also well-known weaknesses and hence considerable scope for improvement. Three types of weaknesses are considered in this paper: social-welfare arrangements are often not financially robust to shocks; individuals make undesirable behavioural adjustments in response to welfare-state arrangements and their financing; and social-welfare arrangements are often poorly adapted to recent changes in socio-economic conditions and preferences of individuals. I discuss these weaknesses, and alternative methods to mitigate them, in the context of various types of welfare-state arrangements that the individual may encounter over the life cycle.

  • 4.
    Lindbeck, Assar
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Nyberg, Sten
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Weibull, Jörgen W.
    Social Norms and Welfare State Dynamics2003In: Journal of the European Economic Association, ISSN 1542-4766, E-ISSN 1542-4774, Vol. 1, no 2-3, p. 533-542Article in journal (Refereed)
    Abstract [en]

    The paper analyses the interaction between economic incentives and work norms in the context of social insurance. If the work norm is endogenous in the sense that it is weaker when the population share of beneficiaries is higher, then voters will choose less generous benefits than otherwise. We also discuss welfare‐state dynamics when there is a time lag in the adjustment of the norm in response to changes in this population share, and show how a temporary shift in the unemployment rate may cause persistence in the number of beneficiaries.

  • 5.
    Lindbeck, Assar
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Snower, Dennis J.
    Birkbeck College, University of London.
    The Firm as a Pool of Factor Complementarities2003Report (Other academic)
    Abstract [en]

    This paper presents a new approach to the theory of the firm by identifying factor complementarities as central to the determination of the firm’s boundaries. The factor complementarities may take a variety of forms: technological and informational complementarities, as well as economies of scale and scope. We examine the tradeoff between the gains from these complementarities and transactions costs. In so doing, we must abandon the standard dichotomy between the determinants of plant size and firm size. The influence of factor complementarities on firm size is examined in partial and general equilibrium frameworks.

  • 6.
    Lindbeck, Assar
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Wikström, Solveig
    Stockholm University, Faculty of Social Sciences, Stockholm Business School, Marketing.
    E-exchange and the Boundary between Households and Organizations2003In: Kyklos (Basel), ISSN 0023-5962, E-ISSN 1467-6435, Vol. 56, no 3, p. 315-340Article in journal (Refereed)
  • 7.
    Niepelt, Dirk
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Intra-Generational Conflict: The Role of Balanced Budget Rules2003Report (Other academic)
    Abstract [en]

    A balanced budget requirement affects the intra-generational wealth distribution and reduces the socially preferred level of government spending. These effects can explain why some groups support balanced budget rules while other groups in the same generation oppose them. Simulations suggest that the intra-generational distributive conflicts surrounding balanced budget rules are prevalent. Survey data suggests that they are empirically relevant. Intra-generational conflict offers a coherent explanation for the observed partial support balanced budget rules

  • 8.
    Niepelt, Dirk
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Tax Evasion Dynamics2003Report (Other academic)
    Abstract [en]

    I study the dynamic tax evasion program of a household with many sources of income. Contrary to the previous literature, I assume that the detection risk of tax evasion is uncorrelated across these sources. If detection triggers the repayment of currently and previously evaded taxes, the marginal cost of evasion increases over time and the optimal duration of evasion is positive but finite. With stochastic pre-tax income, the fraction of aggregate taxes evaded remains interior, even if detection triggers duration-independent penalties. The model helps to understand the recent European debate about the cross-border exchange of information about capital income as opposed to taxation at the source. It yields a transparent representation of the revenue and efficiency losses due to tax evasion and highlights various effects of tax policy on evasion.

  • 9.
    Svedberg, Peter
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    World Income Distribution: Which Way?2003Report (Other academic)
    Abstract [en]

    Over the past few years, a large number of studies have aimed at estimating changes in relative income distribution across countries and globally. Some of the studies find the distribution to have worsened considerably, others that it has become more even. One objective of this article is to identify and quantify the reasons for these conflicting results. Another objective is to highlight the difference between changes in relative and absolute income distribution. While the relative distribution over the entire range of countries seems to have improved somewhat over the past 2-3 decades according to the most relevant indicators, the absolute income gaps between rich and poor countries have widened considerably. It is further demonstrated that these gaps will inevitably continue to grow for many decades to come.

  • 10.
    Svedberg, Peter
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Tilton, John E.
    Division of Economics and Business, Colorado School of Mines.
    The Real, Real Price of Nonrenewable Resources: Copper 1870-20002003Report (Other academic)
    Abstract [en]

    Over the past 40 years economists have devoted considerable effort to estimating long-run trends in real commodity prices. The results indicate that the real prices for many commodities have fallen, suggesting to the surprise of many that resource scarcity is declining over time. Almost all of this work, however, uses the U.S. producer price index or other standard price deflators, which recent research shows overestimate inflation for several reasons. This article examines copper prices with adjusted deflators designed to eliminate this bias. It finds that the trend over time, which is significantly downward when no adjustment is made to the deflator, displays no tendency in either direction or is significantly upward depending on the magnitude of the deflator adjustment employed. These findings suggest that real resources prices provide less support than widely assumed for the hypothesis that resources are becoming more available or less scarce over time.

  • 11.
    Ticchi, Davide
    et al.
    Department of Economics, University of Urbino.
    Vindigni, Andrea
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Endogenous Constitutions2003Report (Other academic)
    Abstract [en]

    We present a theory of the choice of alternative democratic constitutions, a majoritarian or a consensual one, in an unequal society. A majoritarian democracy redistributes resources from the collectivity toward relatively few people, and has a relatively small government and low level of taxation. A consensual democracy redistributes resources toward a broader spectrum of social groups but also has a larger government and a higher level of taxation. A consensual system turns out to be preferred by the society when ex ante income inequality is relatively low, while a majoritarian system is chosen when income inequality is relatively high. Moreover, we obtain that consensual democracies should be expected to be ruled more often by center-left coalitions while the right should have an advantage in majoritarian constitutions. Finally, our model also provides a new rationale, based on the endogeneity of the political system, of the positive or absent (rather than negative) association between equality and redistribution transpiring from the cross-sectional evidence of developed countries presented in some recent studies. Some historical and empirical evidence supporting our results is provided.

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