Reflections on the Origins of the Polis: An Economic Perspective on Institutional Change in Ancient Greece

From a beginning of small isolated settlements around 1000 B.C., the city-state (polis) emerged in Greece in the course of four centuries as a political, geographical and judicial unit, with an assembly, council, magistrates and written laws. Using a rational-actor perspective, it is shown how this process was driven by competition among the members of the elite. A crucial ingredient was the gradual consolidation of boundaries, which contributed to population growth, inter-state conflicts, colonisation and competition for power. Variations over time in the conditions for competition explain both the introduction of formal political institutions and their overthrow by tyrants

A reflection on Richard B. Saltman 'Structural patterns in Swedish health policy

Looking back over 30 years of Swedish health care, professor Saltman examines structural changes in the Swedish health care sector. This is a very welcome contribution to the literature, and it makes good sense – institutional change is often a slow process, and it may take considerable time before the effects can be fully appreciated. Saltman’s paper provides a useful analytical overview of three decades of Swedish health care. He identifies several noteworthy structural patterns: the resilience of the county councils, the slow growth of diversity among service providers and the slow strengthening of patients’ choice. It is interesting to consider this health-sector development in a broader perspective. Both diversity of providers and free choice for patients can be seen as deregulations of the Swedish market. The period from the early 1980s till today is in fact characterized by a deep-going trend of deregulation in Sweden. At the macro level, this is captured by the Economic Freedom Index (Gwartney et al., 2013). This index measures economic freedom in five dimensions and the overall score lies between 0 and 10. For example, second-placed Singapore has an overall index score of 8.60. Back in 1980, Sweden was “a highly regulated economy with several state monopolies and low levels of economic freedom. Less than 20 years later, liberal reforms turned Sweden into one of the world’s most open economies with a remarkable increase in economic freedom” (Bergh and Erlingsson, 2008). The Swedish score increased from 5.68 in 1980 to 7.73 in 2010 (Table 1). This moved Sweden up from 37th to 18th place worldwide (the average score for the 101 countries for which there is data back to 1980 increased by 1.52). Economic freedom increased also in Denmark, Finland and Norway (Norway peaked in 2005–2007), but Sweden increased the most

Societal costs of air pollution-related health hazards: A review of methods and results

This paper aims to provide a critical and systematic review of the societal costs of air pollution-related ill health (CAP), to explore methodological issues that may be important when assessing or comparing CAP across countries and to suggest ways in which future CAP studies can be made more useful for policy analysis. The methodology includes a systematic search based on the major electronic databases and the websites of a number of major international organizations. Studies are categorized by origin – OECD countries or non-OECD countries – and by publication status. Seventeen studies are included, eight from OECD countries and nine from non-OECD countries. A number of studies based on the ExternE methodology and the USA studies conducted by the Institute of Transportation are also summarized and discussed separately. The present review shows that considerable societal costs are attributable to air pollution-related health hazards. Nevertheless, given the variations in the methodologies used to calculate the estimated costs (e.g. cost estimation methods and cost components included), and inter-country differences in demographic composition and health care systems, it is difficult to compare CAP estimates across studies and countries. To increase awareness concerning the air pollution-related burden of disease, and to build links to health policy analyses, future research efforts should be directed towards theoretically sound and comprehensive CAP estimates with use of rich data. In particular, a more explicit approach should be followed to deal with uncertainties in the estimations. Along with monetary estimates, future research should also report all physical impacts and source-specific cost estimates, and should attempt to estimate 'avoidable cost' using alternative counterfactual scenarios

The core of the Nordic health care system is not empty

<p class="Normal2"><span lang="EN-GB">The Nordic countries are well-known for their welfare states. A very important feature of the welfare state is that it aims at easy and equal access to adequate health care for the entire population. For many years, the Nordic systems were automatically viewed as very similar, and they were placed in the same group when the OECD classified health care systems around the world. However, close inspection soon reveals that there are important differences between the health care systems of Denmark, Finland, Iceland, Norway and Sweden. Consequently, it is perhaps no surprise that the Nordic countries fell into three different categories when the OECD revised its classification a few years ago. In this paper, we revisit this issue and argue that the most important similarity across the Nordic countries is the institutional context in which the health care sector is embedded. Nordic health care exists in a high-trust, high-taxation setting of small open economies. With this background, we find a set of important similarities in the manner in which health care is organized and financed in the Nordic countries. To evaluate the performance of the Nordic health care system, we compare a few health quality indicators in the Nordic countries with those of five non-Nordic similarly small open European economies with the same level of income. Overall, the Nordic countries seem to be performing relatively well. Whether they will continue to do so will depend to a large extent on whether the welfare state will continue to reform itself as it has in the past.</span></p

Institutions, taxation, and market relationships in ancient Athens

This paper explores the institutional and economic development in ancient Athens from around 600 BC into the fourth century, a period during which the Athenians experienced oligarchy, tyranny, a gradually evolving but eventually far-reaching male democracy, followed by a return to more influence for the elite. Concomitantly, economic life changed qualitatively and quantitatively. Self-sufficient farming gradually gave way to market relationships and there was substantial economic growth. This analysis of institutional changes in Athens emphasizes the importance of credible commitments from those in power to other groups in society. It is furthermore likely that the increasing reliance on market relationships gradually transformed individual behaviour and individual beliefs, leading to changes in the formal and informal rules in society. Taxation played an important role: it pushed people into market relationships, illustrated the need for credible commitments, and helps to explain why foreigners were so prominent in trade in ancient Athens

Surprising institutions

This paper introduces the notion of surprising institutions. We often carry incorrect beliefs about the world surrounding us and we are often mistaken about the nature of the institutional structure. The case story in this paper shows that an institution may come as a surprise, even though its origins lies some 500 years back, and that the information we receive as feedback on our actions does not necessarily improve our understanding of the institutional structure. It turns out that it is possible for an “ordinary citizen (professor of economics)” to win a case against a multinational corporation and an age-old government agency (what a surprise!), but it also transpires that even if you win, you lose (not quite a surprise)