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The Dutch Miracle: Institutions, Networks, and Trust

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  • Frank A.G. den Butter
  • Robert H.J. Mosch

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.

Suggested Citation

  • Frank A.G. den Butter & Robert H.J. Mosch, 2003. "The Dutch Miracle: Institutions, Networks, and Trust," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(2), pages 362-391, June.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200306)159:2_362:tdmina_2.0.tx_2-7
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    Cited by:

    1. Paul T. de Beer & Robert H.J. Mosch, 2007. "The waning and restoration of social norms: a formal model of the dynamics of norm compliance and norm violation," DNB Working Papers 131, Netherlands Central Bank, Research Department.
    2. Frank A.G. den Butter, 2012. "Managing Transaction Costs in the Era of Globalization," Books, Edward Elgar Publishing, number 14748.
    3. Frank A.G. den Butter & Sjoerd ten Wolde, 2011. "The Institutional Economics of Stakeholder Consultation; Reducing Implementations Costs through 'Matching Zones'," Tinbergen Institute Discussion Papers 11-162/3, Tinbergen Institute.
    4. W. Jos Jansen, 2008. "Inside The Impossible Triangle: Monetary Policy Autonomy In A Credible Target Zone," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 216-228, April.
    5. Butter, Frank A.G. den & Koppes, Silvie Y., 2003. "Strikes in France and the Netherlands; a comparison of labour market institutions," Serie Research Memoranda 0012, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    6. Berggren, Niclas & Daunfeldt, Sven-Olov & Hellström, Jörgen, 2014. "Social trust and central-bank independence," European Journal of Political Economy, Elsevier, vol. 34(C), pages 425-439.
    7. den Butter, Frank A. G. & van Gameren, Edwin, 2004. "Employment policy in a dynamic labour market: simulations using a multifirm flow model," Journal of Economic Behavior & Organization, Elsevier, vol. 53(2), pages 283-301, February.
    8. Lex Borghans & Ben Kriechel, 2009. "Wage Structure and Labor Mobility in The Netherlands, 1999-2003," NBER Chapters, in: The Structure of Wages: An International Comparison, pages 125-148, National Bureau of Economic Research, Inc.
    9. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    10. Alexander Hijzen & Pedro S. Martins & Jante Parlevliet, 2017. "Collective Bargaining Through the Magnifying Glass: A Comparison Between the Netherlands and Portugal," IMF Working Papers 2017/275, International Monetary Fund.
    11. Kang, Byeongwoo & Nabeshima, Kaoru & Cheng, Fang-Ting, 2015. "Avoiding the middle income trap : indigenous innovative effort vs foreign innovative effort," IDE Discussion Papers 509, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. Jante Parlevliet, 2017. "What drives public acceptance of reforms? Longitudinal evidence from a Dutch pension reform," Public Choice, Springer, vol. 173(1), pages 1-23, October.
    13. W. Jos Jansen & Ad C. J. Stokman, 2006. "International Rent Sharing and Domestic Labour Markets: A Macroeconomic Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(4), pages 792-813, December.
    14. Robert Gillanders & Olga Neselevska, 2018. "Public Sector Corruption and Trust in the Private Sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(8), pages 1288-1317, November.
    15. David Chavanne, 2018. "Generalized Trust, Need for Cognitive Closure, and the Perceived Acceptability of Personal Data Collection," Games, MDPI, vol. 9(2), pages 1-18, April.
    16. Lewis, John, 2009. "Hitting and hoping?: Meeting the exchange rate and inflation criteria during a period of nominal convergence," European Journal of Political Economy, Elsevier, vol. 25(4), pages 508-524, December.
    17. Butter, Frank A.G. den, 2006. "The industrial organisation of economic policy preparation in the Netherlands," Serie Research Memoranda 0007, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    18. Lei Delsen & Erik Poutsma, 2005. "Labour market institutions and economic performance in the Netherlands," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 169-196.
    19. Eichhorst, Werner & Wintermann, Ole, 2005. "Generating Legitimacy for Labor Market and Welfare State Reforms: The Role of Policy Advice in Germany, the Netherlands, and Sweden," IZA Discussion Papers 1845, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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