INSEAD Library

Includes bibliographical references and index

Digitized

The Diversity of Modern Capitalism Contents List of Figures List of Tables List of Abbreviations ix xii xiv 1 Introduction 1 1.1 The Institutional Diversity of Capitalism 1 1.2 Institutional Complementarity 5 1.3 Institutions and Politics 9 1.4 Five Different Models of Capitalism 13 1.5 An Empirical Investigation of the Diversity of Capitalism 16 1.6 Institutional Change and Political Strategies in Europe 23 2 Institutions, Complementarity, and Hierarchy 2.1 Institutions and Economics 2.1.1 Why Institutions Matter 2.1.2 Elements of a Theory of Institutions 2.1.3 Institutions and Conflict of Interest 2.1.4 Institutions as a Political-Economy Equilibrium 2.2 Institutional Complementarity 2.2.1 Interaction 2.2.2 Complementarity 2.3 Institutional Hierarchy 26 26 26 32 35 46 54 55 59 66 3 A Comparative Analysis of Capitalism 74 3.1 Historical and International Differentiation of Capitalism 74 3.2 Methodological Questions 79 3.3 Social Systems of Innovation and Production 85 3.4 Diversity of Capitalism 93 3.4.1 Elements of Differentiation Among Models; Possible Institutional Complementaries 93 3.4.2 Five Types of Capitalism 102 4 Institutional Diversity: An Analysis of Five Domains 4.1 Product Markets 4.2 The Wage-Labour Nexus 4.2.1 Employment Protection 115 115 124 125 4.3 4.4 4.5 4.6 4.2.2 Industrial Relations 4.2.3 Employment Policy Financial Systems Social Protection Education Conclusion 130 138 142 149 160 169 171 171 181 183 189 197 200 210 213 225 226 231 231 235 238 244 245 250 251 253 261 5 The Diversity of Economic Models 5.1 The Five Models of Capitalism 5.2 Diversity of Capitalism and Political Equilibria 5.2.1 Partisan Politics 5.2.2 Political Systems 5.3 Comparative Institutional Advantage? 5.3.1 An Analysis of Science/Technology/Industry Specialization 5.3.2 The New Economy 5.4 Economic Performance 6 Whither Continental European Capitalism? 6.1 The European Context 6.2 The Third Way and the Continental European Model 6.2.1 A Crash Course on the Third Way 6.2.2 The Economics and Economic Policy of the Third Way 6.2.3 A Battle of Systems? 6.3 The Continental European Welfare­Labour Nexus 6.3.1 A Limited Welfare State Retrenchment 6.3.2 New Bargaining Patterns 6.3.3 No European Level Wage Bargaining 6.4 The Financial Sector 6.5 Conclusion Appendix: The Methodology behind the Statistical Analysis in Chapter 4 References Index 266 290 303