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IN HIS RESPONSE TO MY COMMENT (BERGH 2006), LINDERT insinuates repeatedly that my criticisms of his book are little more than ideological bias. In this response, I will try even harder to recur to the facts. Still my conclusion is that Lindert is wrong about work incentives and employment in Sweden. To explain the so called free-lunch puzzle, we probably need to look closer at institutional quality and economic freedom.
This article is a response to The Welfare State Is the Wrong Target: A Reply to Bergh by Peter H. Lindert (EJW, May 2006).
Response to this article by Peter H. Lindert: Second Reply to Bergh (EJW, September 2006).