Denmark and Switzerland are small and successful countries with exceptionally content populations. However, they have very different political institutions and economic models. They have followed the general tendency in the West toward economic convergence, but both countries have managed to stay on top. They both have a strong liberal tradition, but otherwise their economic strategies are a welfare state model for Denmark and a safe haven model for Switzerland. The Danish welfare state is tax-based, while the expenditures for social welfare are insurance-based in Switzerland. The political institutions are a multiparty unicameral system in Denmark, and a permanent coalition system with many referenda and strong local government in Switzerland. Both approaches have managed to ensure smoothly working political power-sharing and economic systems that allocate resources in a fairly efficient way. To date, they have also managed to adapt the economies to changes in the external environment with a combination of stability and flexibility.

"The book uses analyses of general macro-economic policy, center-local relations, budgeting, labor market, and welfare state transfers and services in three critical areas to present a comprehensive picture of the governance of and interactions between the Danish welfare state and political economy at all levels. A critical introductory survey of the welfare state literature and a synthetic conclusion frame these studies."--BOOK JACKET.

Does the territorial state organisation matter for effective policy making, and if so, in what way? So far, we know relatively little about its effects on policy making and policy outputs. Starting from the hypothesis that decentralised policy making has positive effects whereas federalism has a slightly negative impact on policy performance, this book systematically tests the independent and interdependent effects of different combinations of federal/unitary and decentralised/centralised structures of decision making and implementation. Based on a mixed methods design it first quantitatively tests the relationships for the OECD countries in cross-sectional as well as panel designs. In a second step, qualitative case studies are conducted for four countries: federal-centralised Austria, federal-decentralised Switzerland, unitary-decentralised Denmark, and unitary-centralised Ireland. The authors study two space-related policy areas, both with regard to the decision making and the implementation stage of the policy-making process: regional policy and transport policy.