TY  - JOUR
AU  - Freeman,Richard B.
TI  - Searching for the EU Social Dialogue Model
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12306
PY  - 2006
Y2  - June 2006
UR  - http://www.nber.org/papers/w12306
L1  - http://www.nber.org/papers/w12306.pdf
N1  - Author contact info:
Richard B. Freeman
NBER
1050 Massachusetts Avenue
Cambridge, MA  02138
Tel: 617/868-3900
Fax: 617/868-2742
E-Mail: freeman@nber.org
M2  - featured in NBER digest on 2006-06-19
AB  - The European Union and the United States operate different variants of market capitalism. The EU model uses social dialogue institutions to help determine economic outcomes, particularly in the labor market, whereas the US relies more on market forces. The theory of competitive markets provides a powerful framework for analyzing market driven economies and for assessing the conditions under which unfettered markets yield desirable outcomes. But there is no comparable framework for analyzing institution driven economies. This paper argues that models of efficient bargaining/the Coase Theorem offer the best framework for analyzing social dialogue economies and for identifying policies and institutional reforms to improve their functioning.
ER  -