Why Does the Northern Light Shine So Brightly? Decentralisation, social capital and the economy
Based on institutional economics, the paper develops a new model pointing at two main reasons why Scandinavia is doing so well in economic terms, namely the level of decentralisation and social capital in its broad sense. The idea in the model is that a political system, which decentralises power, m...
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ftrepec:oai:RePEc:hhs:aareco:2002_015 2024-04-14T08:13:42+00:00 Why Does the Northern Light Shine So Brightly? Decentralisation, social capital and the economy Bjørnskov, Christian Svendsen, Gert Tinggaard http://www.hha.dk/nat/WPER/02-15_gts.pdf unknown http://www.hha.dk/nat/WPER/02-15_gts.pdf preprint ftrepec 2024-03-19T10:35:56Z Based on institutional economics, the paper develops a new model pointing at two main reasons why Scandinavia is doing so well in economic terms, namely the level of decentralisation and social capital in its broad sense. The idea in the model is that a political system, which decentralises power, means less lobbyism because access to economically harmful rent seeking is more costly. Consequently, social capital and the trust in other people and the political leadership will increase. This model, suggesting one single social capital measure, is applied to countries in both Western and Eastern Europe. The social capital ranking results indeed show that Scandinavia (Denmark, Norway, Sweden and Finland) is among the seven top ranking countries together with Switzerland, the Netherlands and Iceland. Social capital; decentralisation; economy; Scandinavia; Switzerland; Netherlands; rent seeking; transaction costs; economic freedom; corruption Report Iceland RePEc (Research Papers in Economics) Norway |
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RePEc (Research Papers in Economics) |
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Based on institutional economics, the paper develops a new model pointing at two main reasons why Scandinavia is doing so well in economic terms, namely the level of decentralisation and social capital in its broad sense. The idea in the model is that a political system, which decentralises power, means less lobbyism because access to economically harmful rent seeking is more costly. Consequently, social capital and the trust in other people and the political leadership will increase. This model, suggesting one single social capital measure, is applied to countries in both Western and Eastern Europe. The social capital ranking results indeed show that Scandinavia (Denmark, Norway, Sweden and Finland) is among the seven top ranking countries together with Switzerland, the Netherlands and Iceland. Social capital; decentralisation; economy; Scandinavia; Switzerland; Netherlands; rent seeking; transaction costs; economic freedom; corruption |
format |
Report |
author |
Bjørnskov, Christian Svendsen, Gert Tinggaard |
spellingShingle |
Bjørnskov, Christian Svendsen, Gert Tinggaard Why Does the Northern Light Shine So Brightly? Decentralisation, social capital and the economy |
author_facet |
Bjørnskov, Christian Svendsen, Gert Tinggaard |
author_sort |
Bjørnskov, Christian |
title |
Why Does the Northern Light Shine So Brightly? Decentralisation, social capital and the economy |
title_short |
Why Does the Northern Light Shine So Brightly? Decentralisation, social capital and the economy |
title_full |
Why Does the Northern Light Shine So Brightly? Decentralisation, social capital and the economy |
title_fullStr |
Why Does the Northern Light Shine So Brightly? Decentralisation, social capital and the economy |
title_full_unstemmed |
Why Does the Northern Light Shine So Brightly? Decentralisation, social capital and the economy |
title_sort |
why does the northern light shine so brightly? decentralisation, social capital and the economy |
url |
http://www.hha.dk/nat/WPER/02-15_gts.pdf |
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Norway |
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Norway |
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Iceland |
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Iceland |
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http://www.hha.dk/nat/WPER/02-15_gts.pdf |
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1796311736226152448 |