Few discussions in modern social science have occupied as much attention as the changing nature of welfare states in Western societies. Gosta Esping-Andersen, one of the foremost contributors to current debates on this issue, here provides a new analysis of the character and role of welfare states in the functioning of contemporary advanced Western societies. Esping-Andersen distinguishes three major types of welfare state, connecting these with variations in the historical development of different Western countries. He argues that current economic processes, such as those moving toward a postindustrial order, are shaped not by autonomous market forces but by the nature of states and state differences. Fully informed by comparative materials, this book will have great appeal to all those working on issues of economic development and postindustrialism. Its audience will include students of sociology, economics, and politics."

The Three Worlds of Welfare Capitalism

This paper considers an economy in which policymakers with different preferences alternate in office as a result of elections. Government debt is used strategically by each policymaker to influence the choices of his successors. If different policymakers disagree about the desired composition of government spending between two public goods, the economy exhibits a deficits bias; that is, debt accumulation is higher than it would be with a social planner. The equilibrium level of debt is larger the larger is the degree of polarization between alternating governments and the less likely it is that the current government will be re-elected.

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A Positive Theory of Fiscal Deficits and Government Debt

This essay explores the possibilities and limits of partisan influence on public policy in democratic nations. It will be pointed out, that differences in party composition of govern- ment, in general, matter in public policy in constitutional democracy. However, the extent to which parties influence public policy is to a significant extent contingent upon the type of democracy and countermajoritarian institutional constraints of central state government. Large partisan effects typify majoritarian democracies and states, in which the legislature and the executive are 'sovereign'. More complex and more difficult to identify is the partisan influence on public policy in consensus democracies and in states, in which the political-institutional circumstances allow for co-governance of the opposition party. Narrowly circumscribed is the room to manoeuvre available to incumbent parties above all in political systems which have been marked by countermajoritarian institutional pluralism or institutional 'semi-sovereignty'. The article suggests, that it would be valuable if direct effects and interaction effects of the party composition of government and state structures featured more prominently in future research on comparative public policy.

When parties matter: A review of the possibilities and limits of partisan influence on public policy

The last quarter century has been marked by the ascension of neoliberalism--market deregulation, state decentralization, and reduced political intervention in national economies. Not coincidentally, this period of dramatic institutional change has also seen the emergence of several schools of institutional analysis. Though these schools cut across disciplines, they have remained isolated from and critical of each other. This volume brings together four--rational choice, organizational, historical, and discursive institutionalism--to examine the rise of neoliberalism. In doing so, it makes tremendous methodological strides while substantively enlarging our knowledge about neoliberalism. The book comprises original empirical studies by top scholars from each school of analysis. They examine neoliberalism's rise on three continents and explore changes in macroeconomic policy, labor markets, taxation, banking, and health care. Neoliberalism appears as much more complex, diverse, and contested than is often appreciated. The authors find that there is no convergence toward a common set of neoliberal institutions; that neoliberalism does not incapacitate states; and that neoliberal reform does not necessarily yield greater efficiency than other institutional arrangements. Beyond these important empirical contributions, this book is a methodological milestone in that it compares different schools of institutionalist analysis by seeing how they tackle a common problem. It reveals a second movement within institutionalism--one toward rapprochement and cross-fertilization among paradigms--and explains how this might be furthered with benefits throughout the social sciences.

The Rise of Neoliberalism and Institutional Analysis.

Plans for the European Monetary Union (EMU) are based on the conventional postulate that increasing the independence of the central bank can reduce inflation without any real economic effects. However, the theoretical and empirical bases for this claim rest on models of the economy that make unrealistic information assumptions and omit institutional variables other than the central bank. When signaling problems between the central bank and other actors in the political economy are considered, we find that the character of wage bargaining conditions the impact of central bank independence by rendering the signals between the bank and the bargainers more or less effective. Greater central bank independence can reduce inflation without major employment effects where bargaining is coordinated, but it can bring higher levels of unemployment where bargaining is less coordinated. Thus, currency unions like the EMU may require higher levels of unemployment to control inflation than their proponents envisage. They will have costs as well as benefits, and these will be unevenly distributed among and within the member nations, depending on the changes they induce in the status of the bank and of wage coordination.

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Mixed Signals: Central Bank Independence, Coordinated Wage Bargaining, and European Monetary Union

The Politics of Inflation and Economic Stagnation

The Politics of Inflation and Economic Stagnation: Theoretical Approaches and International Case Studies

Politics and the future of industrial society

The inflation of the 1970s represented the greatest peacetime disruption of the Western economies since the Depression. Even as inflation receded, the recession in its wake brought more joblessness than at any time since the 1930s. The governments of industrialized nations found that the economic policies they had developed since World War II no longer assured price stability or high employment. What are the lessons of over a decade of economic difficulty? In this conference volume, which focuses on aspects of the crisis that economists often presuppose to be beyond control, the authors analyze the political and social underpinning of inflation and recession. Part 1 places the economic problems of the 1970s in the historical context of postwar development and then compares economic and political science analyses of inflation. Part 2 examines how rivalries between social groups affect inflationary processes. One chapter draws on the history of Latin American inflation to suggest the conflicts in play. Two others weigh the role of labor and industry in the formation of economic policy. And another shows how rivalry between countries, like rivalry between classes at home, permitted inflation to rise. The chapters in part 3 contest the claim that big government or big labor causes inflation. Two studies emphasize that a high degree of public expenditure does not itself lead to inflation. Further contributions explore the role of central banks and subject such concepts as the political business cycle to critical analysis. Part 4 comprises case studies about macroeconomic policymaking in four nations: Italy, Germany, Japan, and Sweden. The studies reveal what institutional attributes rendered those countries resistant to inflation or vulnerable to economic setback. In the last part, the editors pull together the findings and lay out the contemporary political feasibility of alternative approaches to macroeconomic management.

Leon N. Lindberg

Papers

The Politics of Inflation and Economic Stagnation

The Politics of Inflation and Economic Stagnation

The Politics of Inflation and Economic Stagnation: Theoretical Approaches and International Case Studies

Politics and the future of industrial society

The politics of inflation and economic stagnation : theoretical approaches and international case studies