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Is the Swedish Model still alive?

Ljungberg, Jonas LU orcid (2026) In Lund Papers in Economic History
Abstract
Baumol’s cost disease is a wellknown theorem, but its consequences are rarely addressed in economic-political discourse. This paper highlights the implications of Baumol’s cost disease and shows that in real terms the once so celebrated “Swedish Model” has lost its exclusive position relative to other European countries. Even worse, since 1995 Swedish welfare services has in general lost in content when measured in constant prices. This is further aggravated when counted per capita, especially when it comes to elderly care where demands have increased with the growth of the population in higher ages.
Please use this url to cite or link to this publication:
author
organization
alternative title
Är den Svenska modellen fortfarande vid liv?
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
welfare services, constant prices, welfare state, H51, H52, H53, N34
in
Lund Papers in Economic History
issue
263
pages
13 pages
project
Crisis and Transformation: the rise of financialization and marketization in the late 20th century
language
English
LU publication?
yes
id
9483ad8d-c5d9-4c18-916e-8ee302981e01
date added to LUP
2026-02-24 17:41:39
date last changed
2026-04-17 07:32:36
@misc{9483ad8d-c5d9-4c18-916e-8ee302981e01,
  abstract     = {{Baumol’s cost disease is a wellknown theorem, but its consequences are rarely addressed in economic-political discourse. This paper highlights the implications of Baumol’s cost disease and shows that in real terms the once so celebrated “Swedish Model” has lost its exclusive position relative to other European countries. Even worse, since 1995 Swedish welfare services has in general lost in content when measured in constant prices. This is further aggravated when counted per capita, especially when it comes to elderly care where demands have increased with the growth of the population in higher ages.}},
  author       = {{Ljungberg, Jonas}},
  keywords     = {{welfare services; constant prices; welfare state; H51; H52; H53; N34}},
  language     = {{eng}},
  note         = {{Working Paper}},
  number       = {{263}},
  series       = {{Lund Papers in Economic History}},
  title        = {{Is the Swedish Model still alive?}},
  url          = {{https://lup.lub.lu.se/search/files/243178956/LUPEH_263.pdf}},
  year         = {{2026}},
}