Denmark

This course focuses on economic policy and the welfare state in Denmark through international comparison and examples from other developed countries. It covers classic welfare state topics as well as more recent themes and challenges to modern welfare states, focusing especially on the expenditure side of government. The course has an emphasis on recent empirical research on policy issues, and a focus on how to take theory to the data, critically evaluate the validity of empirical designs, and account for policy implications of research results. Each topic looks at economic facts and status quo policies in Denmark and elsewhere, works with the theoretical framework and economic reasoning behind these policies, discusses empirical evidence and evaluations of “what works” in terms of policy in that area, and covers views from the public debate. The course provides an academic foundation for thinking about different policy questions; an understanding of policy in an applied context and as part of the political system and the public debate; an overview of contemporary economic issues related to the welfare state and public sector in Denmark and other developed countries; and an opportunity for students to think as economists about these issues and account for potential challenges, trade-offs, and solutions in an academic way.

The first part of the course focuses on history and culture, starting with a brief historical view of Danish society since 1800. It then analyzes culture from two perspectives: the history of ideas in Danish society and Danish cultural value systems. This entails a brief introduction to key Danish thinkers and cultural movements and their political impact, and an introduction to Danish cultural values and the development and changes of such values over the last 30 to 40 years. The second part of the course takes an institutional approach to the Danish political system, including its labor market structures and education system, by descriptions of specific societal sectors, drawing on theory about institutional orders and business regimes. Continuing with the institutional approach, the third part of the course focuses more specifically on the business sector leading to a discussion of key industries and types of firms in the Danish economy.