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Berggren, Niclas; Bjørnskov, Christian; Lipka, David - Institutet för Näringslivsforskning (IFN) - 2014

possible explanation of this differential effect, we explore whether perceived government legitimacy (measured by satisfaction … government may “get away” with being big since legitimacy can affect people’s behavioral response to, and therefore the economic … growth cost of, taxation and government expenditures. On the negative side, legitimacy may make voters less prone to acquire …

Persistent link: https://www.econbiz.de/10010945001

Bargaining over a New Welfare State

Bonatti, Alessandro; Thomsson, Kaj - Institutet för Näringslivsforskning (IFN) - 2007

The goal of this paper is twofold: First, to develop an estimable model of legislative politics in the US Congress, second, to provide a greater understanding of the objectives behind the New Deal. In the theoretical model, the distribution of federal funds across regions of the country is the...

Persistent link: https://www.econbiz.de/10005207057

Political Preferences and Public Sector Outsourcing

Elinder, Mikael; Jordahl, Henrik - Institutet för Näringslivsforskning (IFN) - 2011

There are several theoretical accounts of public sector outsourcing. We note that leading theories give different predictions of the influence of political variables and test the predictions on a Swedish data set in which outsourcing varies between municipalities and over time as well as between...

Persistent link: https://www.econbiz.de/10009251245

Public and Private Welfare State Institutions: A Formal Theory of American Exceptionalism

Thomsson, Kaj - Institutet för Näringslivsforskning (IFN) - 2010

I construct a model of public policy development, and use the model to explain why the United States has a comparatively small public sector, but instead a large "private welfare state" with employment-based benefits. The key factors are politically organized firms and labor unions. These...

Persistent link: https://www.econbiz.de/10008562417

Fiscal Illusion and Fiscal Obfuscation:An Empirical Study of Tax Perception in Sweden

Sanandaji, Tino; Wallace, Björn - Institutet för Näringslivsforskning (IFN) - 2010

In this paper we present survey evidence suggesting that there exists a sizeable fiscal illusion amongst the general public in Sweden. Respondents in a nation-wide and representative survey systematically underestimate the share of an ordinary worker’s income that is transferred to the public...

Persistent link: https://www.econbiz.de/10008494013

Oil Prices and Real Exchange Rate Movements in Oil-Exporting Countries: The Role of Institutions

Rickne, Johanna - Institutet för Näringslivsforskning (IFN) - 2009

Political and legal institutions affect the extent to which the real exchange rates of oil-exporting countries co-move with the oil price. In a simple theoretical model, strong institutions insulate real exchange rates from oil price volatility by generating a smooth pattern of fiscal spending...

Persistent link: https://www.econbiz.de/10008479234

Privatization of Credence Goods: Theory and an Application to Residential Youth Care

Lindqvist, Erik - Institutet för Näringslivsforskning (IFN) - 2008

A wide range of services provided by the public sector are credence goods, i.e., services for which the producer has private information whether a certain treatment is needed or not. This paper studies how ownership affects the incentives for producers to reveal such information to public...

Persistent link: https://www.econbiz.de/10005419540

Will Privatization Reduce Costs?

Lindqvist, Erik - Institutet för Näringslivsforskning (IFN) - 2008

I develop a model of public sector contracting based on the multitask framework by Holmström and Milgrom (1991). In this model, an agent can put effort into increasing the quality of a service or reducing costs. Being residual claimants, private owners have stronger incentives to cut costs than...

Persistent link: https://www.econbiz.de/10005645363

Political Polarization and the Size of Government

Lindqvist, Erik; Östling, Robert - Institutet för Näringslivsforskning (IFN) - 2008

We study the effect of political polarization on government spending and redistribution using the dispersion of self-reported political preferences as our measure of polarization. Politically polarized countries have lower levels of redistribution and government consumption. The relationship...

Persistent link: https://www.econbiz.de/10005645372

Who Wants Political Integration? Evidence from the Swedish EU-Membership Referendum

Vlachos, Jonas - Institutet för Näringslivsforskning (IFN) - 2003

The regional voting pattern of the Swedish EU-membership referendum is analyzed to determine voters' preferences over two fiscal regimes: an autonomous Sweden, or Sweden as part of the EU. A major difference between these regimes is that autonomy gives greater national discretion to handle...

Persistent link: https://www.econbiz.de/10005645440