OECD economic surveys : Sweden 1999 / Organisation for Economic Co-operation and Development.

Format:

Book

Author/Creator:

Organisation for Economic Co-operation and Development, issuing body.

Series:

OECD economic surveys.

OECD Economic Surveys

Language:

English

Subjects (All):

Economic history.

Sweden--Economic conditions--1945-.

Sweden.

Sweden--Economic policy.

Physical Description:

1 online resource (177 pages).

Edition:

1st ed.

Place of Publication:

Paris, France : OECD Publishing, [1999]

Language Note:

English

Summary:

Assessment and recommendations I. Recent developments and longer-term perspectives -Overview -Recent trends and prospects -The supply-side challenge II. Macroeconomic policies -Monetary policy -Fiscal policy III. Structural reform: a review of progress -Introduction -Recent labour-market performance -Labour-market reform -Product-market competition and entrepreneurship issues -Summing-up IV. The tax and transfer system - balancing efficiency and welfare -Objectives, institutions and instruments -Redistribution: the achievements of the welfare state -Economic impact of the tax and transfer systems -Options for reform Annexes -I. The evolution of social insurance -II. A cross-country comparison of the effects of earned income tax credits -III. A select bibliography for Chapter IV -IV. Fiscal and structural indicators -V. Calendar of main economic events.

Contents:

Intro

Table of contents

Basic statistics of Sweden

Assessment and recommendations

I. Recent developments and longer-term perspectives

Overview

Figure 1. Macroeconomic performance

Recent trends and prospects

More balanced growth in a favourable policy environment

Figure 2. The economic policy environment

Robust domestic demand

Figure 3. Asset prices and household wealth

Figure 4. The investment environment

Improving labour-market outcomes in an environment of low wage and price inflation

Continued surplus on the current account

Figure 5. Trade performance

Figure 6. Foreign indebtedness

Overall prospects and risks

Table 1. Demand and output

The supply-side challenge

A weak longer-term productivity record

Figure 7. GDP growth and GDP per capita

Table 2. GDP per capita and effects of labour-market factors

Table 3. Productivity differentials and development

Figure 8. Productivity growth in manufacturing and private services

Significant changes in the framework for enterprises

Figure 9. International comparison of the Swedish price level

Figure 10. The distribution of Swedish multinational enterprises' sales in Sweden and abroad

Figure 11. Foreign direct investment flows

II. Macroeconomic policies

Monetary policy

Strategy and implementation 1997-99

Figure 12. Short-term interest rates and the exchange rate

Figure 13. Bond yields

Figure 14. Interest-rate and inflation expectations

Clarifying and refining monetary policy formulation

Figure 15. Inflation developments

Policy considerations in the current conjuncture

Figure 16. Indicators of monetary conditions

Figure 17. The Taylor rule

Fiscal policy

Table 4. Budget plans and outcomes

Box 1. The Stability and Growth Pact for non-EMU member states.

Implementing budgetary policy: establishing a surplus in public finances

Table 5. Contributions to budget consolidation

Figure 18. General government budget balances

Figure 19. General government expenditure and tax ratios

The prerequisites for sustaining recent performance into the medium term

Implications of the historical evidence

Table 6. Interaction between ÿscal policy and economic developments

Reinforcing expenditure control at central government level

Table 7. Ceilings for central government expenditure 1997-2002

Whither local government budgets?

Addressing long-term challenges

III. Structural reform: a review of progress

Introduction

Recent labour-market performance

Recovering labour demand...

Table 8. Labour-market developments

... but imbalances are severe

Figure 20. Structure of the labour force

Figure 21. Indicators of structural unemployment

Labour-market reform

Employment strategy in Sweden

Increasing labour-market flexibility

Controlling excessive wage growth: centralisation versus decentralisation

Box 2. Trends in wage bargaining in Sweden

Easing employment security provisions and increasing work time flexibility

Making work pay

Figure 22. The strictness of job availability rules in selected OECD countries

Enhancing the effectiveness of active labour market policies

Strengthening skill and competence acquisition

Product-market competition and entrepreneurship issues

An up-to-date competition framework

Markets for utilities are dominated by incumbents

Table 9. Obstacles to competition in recently deregulated markets

The electricity market

Box 3. Constraints on the energy industry

Telecommunications

Postal services

Transport

Excessive government intervention in ""traditional'' private markets.

Business support remains low...

Table 10. Government support to the business sector

Figure 23. State aid to manufacturing

... but regulations impede market entry...

... and inflate construction costs

Figure 24. Relative price levels in housing

Box 4. The Swedish housing market

Impediments to entrepreneurship

Summing-up

Box 5. A review of progress in structural reform

IV. The tax and transfer system - balancing efficiency and welfare

Objectives, institutions and instruments

The foundations of the welfare state

Figure 25. Taxes, expenditure and net lending

Table 11. The structure of public ÿnances and social expenditures

The interaction between social and occupational insurance schemes

Box 6. Social insurance for the working-age population

Figure 26. Household income by origin

Table 12. Pensioners, beneÿt recipients and employment

Financing the welfare state

Figure 27. Effective tax rates

Redistribution: the achievements of the welfare state

Sweden still compares favourably internationally

Table 13. Features of income distribution in selected OECD countries

Table 14. Reduction of poverty due to taxes and transfers

Considerations shaping income distribution policies

Figure 28. Income distribution trends

Table 15. Transfers and the distribution of incomes

Economic impact of the tax and transfer systems

Taxes, transfers and labour-market outcomes

Transfers and labour supply: participation, absence and the retirement decision

Table 16. Trends in labour supply

Table 17. Generosity of social insurance and other transfers

Figure 29. Poverty and unemployment traps

Table 18. Features of early retirement schemes and labour force participation for older male workers

Generous social assistance feeds through to other transfers and reservation wages.

Table 19. Reservation wages implied by social assistance and social insurance

The generosity of social insurance

Table 20. International comparison of social insurance schemes

Taxes and labour supply: strong response to changes in economic incentives

Figure 30. Effective tax rates at different income levels

Table 21. Effects of taxes and grants on the return from undertaking university education

Savings, investment and the allocation of capital

Household savings: its composition highly responsive to tax-induced changes in economic returns

A more neutral taxation of corporate investment...

Table 22. Effective marginal tax rates in capital income taxation

Table 23. Real cost of capital for personally-owned enterprises and closely-held corporations

... but impediments to savings and capital formation remain

Table 24. Dimensions of capital income taxation

The Achilles heel of the system: the tension between capital and labour income taxation

Options for reform

Easing the tax on labour

Shifting the tax base

Table 25. Tax expenditures by tax category

Alternative approaches to tax reform: differentiated rates or a flat tax?

Table 26. Employment growth since 1980

Box 7. Alleviating the effects of high tax wedges

Table 27. Effects of implementing a proportional income tax system

Responding to capital mobility and obstacles to enterprise growth

Social insurance reform: incrementalism or reorganisation?

Summing-up: incentives versus equity

Box 8. Options for reforming the tax and transfer system

Notes

Annex I. The evolution of social insurance

The 1960s: extending scope and coverage

The 1970s: reacting to emerging labour-market imbalances

The 1980s: generosity increasing across the system

The 1990s: tightening social insurance in response to burgeoning budget deficits.

Occupational pensions: small in terms of expenditures but not in economic significance

Annex II. A cross-country comparison of the effects of earned income tax credits

Box A1. The model applied

Table A1. Tax structure prior to and after an EITC reform

Table A2. Labour-market structures

Table A3. Labour-market responses to an EITC reform

Annex III. A select bibliography for Chapter IV

Systemic overviews

Taxes

Social insurance

Old-age pension reform

Income-replacement schemes

Family support

Social assistance

Policy overviews and international comparisons

Income distribution

Annex IV. Fiscal and structural indicators

Table A4. The public sector

Table A5. Tax rates

Table A6. Production structure and performance indicators

Table A7. A decomposition of GDP per capita

Table A8. Labour-market indicators

Annex V. Calendar of main economic events

List of Figures

Figure 19. General government expenditure and tax ratios.

Figure 20. Structure of the labour force.

Notes:

Bibliographic Level Mode of Issuance: Monograph

Description based on print version record.

Description based on publisher supplied metadata and other sources.

ISBN:

92-64-16735-8

OCLC:

1132391784