Johan Christensen

The Power of Economists Within the State

• Gebundenes Buch

Produktbeschreibung

Johan Christensen is Assistant Professor in Leiden University's Institute of Public Administration.

Produktdetails

• Verlag: Stanford University Press
• Seitenzahl: 232
• Erscheinungstermin: 11. April 2017
• Englisch
• Abmessung: 236mm x 156mm x 22mm
• Gewicht: 490g
• ISBN-13: 9781503600492
• ISBN-10: 1503600491
• Artikelnr.: 45800133

Autorenporträt

Johan Christensen is Assistant Professor in Leiden University's Institute of Public Administration.

Inhaltsangabe

Contents and Abstracts
1Economists and Market-Conforming Reform
chapter abstract
This chapter presents the theoretical argument of the book, which centers
on how the institutionalization of economic knowledge within the state
shaped the turn toward the market in public policy. The argument points to
the interaction between professional groups and administrative
institutions. Highly trained experts often occupy strategic bureaucratic
positions and possess knowledge resources that they can leverage vis-à-vis
elected politicians. At the same time, the institutional position of
professional experts varies across both countries and government
organizations, depending not only on functional tasks but also on struggles
over the proper role of different forms of knowledge in managing the
affairs of the state. The chapter thus puts forward a contingent argument
about the institutional role and policy impact of economic experts, which
contributes to a growing literature about the role of economists in
contemporary policy making.
2The New Economics and Politics of Taxation
chapter abstract
This chapter provides an introduction to the changing economics and
politics of taxation. It describes the rise and fall of the postwar tax
regime and discusses the new economic ideas about taxation that emerged in
the 1970s. These new ideas about efficient and neutral taxation were part
of the background for the global "tax reform movement" of the 1980s. The
chapter surveys the core elements of the tax policy changes adopted
worldwide since that time. Yet, importantly, it argues that these general
trends conceal great variation in the adoption of market principles in
taxation. The chapter traces the diverging tax policy trajectories of four
countries that serve as examples of the broader variation in reform: New
Zealand, Ireland, Norway, and Denmark.
3New Zealand: Plotting a Market-Oriented Revolution
chapter abstract
New Zealand went further in the adoption of market-oriented policies than
any other advanced economy in the 1980s. This chapter investigates the role
of economists within the state in this radical shift toward the market. It
shows how the buildup of economic expertise in the New Zealand Treasury
laid the foundations for the embrace of neoclassical economic thinking in
the department in the early 1980s, including efficiency-oriented ideas
about tax policy. This inspired a radical program of economic
restructuring, which was put into action by New Zealand's Labour
government. Despite severe criticism and organizational reforms, the sway
of state economists over tax policy largely persisted over the following
decades, culminating in a further strengthening of the market orientation
of the tax system in 2010.
4Ireland: Populist Politics in a Generalist System
chapter abstract
In stark contrast to New Zealand's market-conforming policies, Ireland
pursued a tax policy of narrow bases and targeted incentives aimed at
stimulating specific economic activities. Although successful in fueling
economic growth, these policies contributed directly to the country's
economic meltdown at the end of the 2000s. This chapter links the policies
adopted in Ireland to the country's generalist administrative system. The
persistence of generalist, competition-based recruitment to the civil
service effectively blocked the rise of economists within the Irish state.
The marginal role of economic experts in Ireland's finance bureaucracy not
only meant that efficiency-oriented ideas about taxation lacked carriers
but also that administrators lacked the analytical skills to resist the
increasingly reckless tax policies pursued by politicians.
5Norway: Economic Experts in the Social-Democratic State
chapter abstract
Contrary to conventional notions about social-democratic tax policies,
Norway adopted a major market-oriented reform of taxation in the early
1990s. This chapter connects this surprising turn toward market principles
to the role of economists within the Norwegian state. Economists were
granted a powerful position in the bureaucracy during the Keynesian era.
Paradoxically, the close links established between the finance ministry and
the economics discipline in this period made the bureaucracy highly
receptive to the later shift toward neoclassical economics. New economic
ideas were brought into the ministry by U.S-trained economists hired to key
positions in the organization. This spurred the formulation and advocacy of
a broad efficiency-oriented reform program, which had a major impact on the
economic policies enacted by Norwegian governments from the late 1980s
onwards.
6Denmark: Equality before Efficiency, Politicians before Experts
chapter abstract
Denmark stood out in international perspective by maintaining very high top
tax rates on labor and high and progressive taxation of capital. This
chapter discusses how the organization of economic expertise in Denmark
contributed to the limited extent of market-conforming tax reform. Unlike
the strong and concentrated position of economists in Norway in the postwar
period, economic knowledge in the Danish state was scattered across a
number of bodies. A consequence of the institutional fragmentation of
economic expertise was that neoclassical economic thinking failed to break
through within the Danish finance bureaucracy. This weakened the agenda for
efficiency-oriented tax reform and allowed political parties to define the
direction for tax policy in the 1990s and 2000s.
7The Power of Economists within the State
chapter abstract
The final chapter revisits the overarching argument about the varying power
of economists within the state and its impact on the adoption of
market-conforming policies. It points out that although economists often
played a central role in tax reform processes, their influence depended
crucially on the institutionalization of economic knowledge within the
state in the postwar period. The chapter also considers what general
lessons can be drawn from this analysis and discusses the future prospects
for the role of economists in public policy making. Although many studies
stress the resilience of economists as providers of market-oriented
policies, this conclusion also points to some potential sources of change.