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 fits to the critique that welfare cost and high taxes reduce growth and endangers competitiveness. Since that...

The paper investigates empirically the interaction between economic growth performance and political institutions in producing free-market reform. In particular, we explore whether political regime types shape systematically government policy responses to good or bad growth performance,...