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The paper aims to highlight the microeconomic aspects of the Swedish model. Although one may easily find many characteristic examples of behavior or structures on micro level, we claim that there were three crucial cases. First, it was the widespread expectation for paternalistic behavior of the government that originated long before the model was implemented. Second, the emergence and successes of particular interest groups (especially the trade unions). And third, the system relied heavily on large enterprises which were expected to achieve high growth and to be the middleman for executing egalitarian policies. It is hard to expect that the Swedish model would be such a success if it weren't for these microeconomic features.
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