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The Dutch Miracle: Institutions, Networks, and Trust

Frank Den Butter () and Robert Mosch ()

Journal of Institutional and Theoretical Economics (JITE), 2003, vol. 159, issue 2, 362-391

Abstract: Between 1982 and 2000, The Netherlands experienced a remarkable economic recovery. Mutual trust among the participants in the social-economic policy preparation process was one of the main driving forces of this recovery. The institutional framework, in which government, unions, employer organisations, central bank, and advisory bodies frequently meet each other in formal and informal networks, enhanced this trust. The resulting cooperativemood led to effectiveness in dealing with (collective action) problems. The framework thus functioned as amechanism that transformed interpersonal and interorganisational trust into positive macroeconomic effects.

JEL-codes: D78 J58 Z13 (search for similar items in EconPapers)
Date: 2003
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