Published articles in English 2012

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Published articles in English 2012 (Reference formatted list)

Information Economics and Policy

Modelling the Welfare Effects of Network Neutrality Regulation: A Response to Caves’s Comment

Nicholas Economides and Joacim Tåg

In this comment we address a reply to our paper Economides and Tåg (2012) by Caves (2012). Based on data on content providers’ and ISPs’ profits in an oligopolistic market in the US, Caves attempts to draw conclusions on whether the parameter ranges…

The B.E. Journal of Economic and Capital Income

The Impact of Inheritances on Heirs’ Labor and Capital Income

Mikael Elinder, Oscar Erixson and Henry Ohlsson

The objective of this paper is to study when and how much labor and capital income of heirs respond to inheritances. We estimate fixed effects models following direct heirs, inheriting in 2004, during the years 2000–2008 using Swedish panel…

Proceedings of the National Academy of Sciences

The Genetic Architecture of Economic and Political Preferences

Daniel J. Benjamin, David Cesarini, Matthijs J. H. M. van der Loos et al.

Preferences are fundamental building blocks in all models of economic and political behavior. We study a new sample of comprehensively genotyped subjects with data on economic and political preferences and educational attainment. We use dense single nucleotide…

Regional Science Policy and Practice

Housing Policies in China: Issues and Options

Yves Zenou

This paper consists in three parts. The first part deals with theory. We evaluate the pros and cons of government involvement in urban housing and of renting versus ownership. In the second part, we summarize the different housing policies that have been implemented…

Economics Letters

An Empirical Investigation of Efficiency and Price Uniformity in Competing Auctions

Tommy Andersson, Christer Andersson and Fredrik Andersson

This paper investigates hypotheses related to efficiency and price uniformity in online competing auctions based on two theoretical predictions from Peters and Severinov [Peters, M., Severinov, S., 2006. Internet auctions with many traders. Journal of Economic Theory…

Journal of Competition Law and Economics

Ex Post Merger Evaluations and Strategic Pre-Merger Investments

Richard Friberg, Pehr-Johan Norbäck and Lars Persson

We present a model that warns against a mechanical comparison of pre- and postmerger prices. The starting point of the article is that both the seller and the buyer take into account how the acquisition price is affected by pre-merger investments. We derive…

Review of Economics and Statistics

Height and Leadership

Erik Lindqvist

This paper studies the relationship between height and leadership. Using data from a representative sample of Swedish men, I document that tall men are significantly more likely to attain managerial positions. An increase in height by 10 centimeters (3.94 inches) is…

Empirical Economics

The Duration of Trade Revisited

Wolfgang Hess and Maria Persson

The recent literature on the duration of trade has predominantly analyzed the determinants of trade flow durations using Cox proportional hazards models. The purpose of this article is to show why it is inappropriate to analyze the duration of trade with…

Public Choice

Tolerance and Growth: Modeling the Empirical Relationship

Niclas Berggren and Mikael Elinder

We showed, in Berggren and Elinder (2012), that tolerance toward homosexuals is negatively and quite robustly related to economic growth. In a comment, Bornhoff and Lee (this issue) question this finding on model-specification grounds. By undertaking three changes,…

Regional Science and Urban Economics

Ethnic Networks and Employment Outcomes

Eleonora Patacchini and Yves Zenou

This paper explores the relationship between residential proximity of individuals from the same ethnic group and the probability of finding a job through social networks, relative to other search methods. Using individual-level data fromtheUK Labour Force survey and…

International Journal of Entrepreneurship and Small Business

Using Self-employment as Proxy for Entrepreneurship: Some Empirical Caveats

Carl Magnus Bjuggren, Dan Johansson and Mikael Stenkula

Self-employment is the most frequently used measure of entrepreneurship. However, its definition varies between countries, which makes comparisons difficult. We present an analysis of Swedish self-employment data and show that even within one country, the depicted…

Review of Network Economics

Urban Crime and Ethnicity

Eleonora Patacchini and Yves Zenou

Using spatial data analysis techniques, we compare the spatial distribution of crime and the black population density across the London boroughs. We show that the higher is the density of the black population in a given borough, the higher is the crime rate. This…

Handbook of Research on International Strategic Management

What Can International Finance Add to International Strategy?

Lars Oxelheim, Trond Randøy and Arthur Stonehill

American Journal of Political Science

Gubernatorial Midterm Slumps

Olle Folke and James M. Snyder

This article studies gubernatorial midterm slumps in U.S. state legislative elections. We employ a regression discontinuity design, which allows us to rule out the hypothesis that the midterm slump simply reflects a type of “reversion to the mean”…

Regional Science and Urban Economics

Out of Sight, Out of Mind: Migration, Entrepreneurship and Social Capital

Jackline Wahba and Yves Zenou

The aim of this paper is to investigate whether return migrants are more likely to become entrepreneurs than non-migrants. We develop a theoretical search model that puts forward the trade off faced by returnees since overseas migration provides an opportunity for…


Endogenous Mergers and Collusion in Asymmetric Market Structures

Mattias Ganslandt, Lars Persson and Helder Vasconcelos

Recent empirical evidence shows that cartels are often asymmetric, while cartel theory suggests that firm symmetry is conducive to collusion. Including an indivisible cost of cartelization, we show that medium asymmetric market structures are more conducive to…

Oxford Economic Papers

Privatization, Investment and Ownership Efficiency

Pehr-Johan Norbäck and Lars Persson

We provide a model that explains the following empirical observations: (i) private ownership is more efficient than public ownership, (ii) privatizations are associated with increases in efficiency, and (iii) the increase in efficiency predates the privatization. The…

Review of Income and Wealth

On the Role of Capital Gains in Swedish Income Inequality

Jesper Roine and Daniel Waldenström

Realized capital gains are typically disregarded in the study of income inequality. We show that in the case of Sweden this severely underestimates the actual increase in inequality and, in particular, top income shares during recent decades. Using micro panel data…

European Review of Economic History

Liquidity Premia During the Industrial Breakthrough: Evidence from the Stockholm Stock Exchange, 1901–1919

Otto Gernandt, Thomas Palm and Daniel Waldenström

This paper analyzes the importance of liquidity in determining security returns for firms listed on the Stockholm Stock Exchange between 1901 and 1919. Using a new and detailed firm-level data set with matching stock price and balance sheet information, we construct…

Resource and Energy Economics

Exhaustible Resources, Technology Choice and Industrialization of Developing Countries

Erika Färnstrand Damsgaard

How should the world economy adapt to the increased demand for exhaustible resources fromcountries like Chinaand India? Toaddress that issue, this paper presents a dynamicmodel of the world economy with two technologies for production; a resource technology, which…

Explorations in Economic History

Citation Success: Evidence from Economic History Journal Publications

Gianfranco Di Vaio, Daniel Waldenström and Jacob Weisdorf

This study examines the determinants of citation success among authors who have recently published their work in economic history journals. Besides offering clues about how to improve one's scientific impact, our citation analysis also sheds light on the state of…

Canadian Journal of Economics

Should Countries Block Foreign Takeovers of R&D Champions and Promote Greenfield Entry?

Oliver Bertrand, Katariina Nilsson Hakkala, Pehr-Johan Norbäck and Lars Persson

In R&D intensive industries, governments promote greenfield foreign investments, while being sceptical towards foreign acquisitions of domestic high-quality firms. We develop a theoretical model that shows that foreign acquisitions are conducive to high-quality…

Research Handbook of Executive Pay

How to Avoid Compensating the CEO for Luck: The Case of Macroeconomic Fluctuations

Lars Oxelheim, Clas Wihlborg and Jianhua Zhang

Public Choice

Correcting Mistakes: Cognitive Dissonance and Political Attitudes in Sweden and the United States

Mikael Elinder

Cognitive dissonance theory predicts that the act of voting makes people more positive toward the party or candidate they have voted for. Following Mullainathan and Washington (Am. Econ. J. Appl. Econ. 1:86–111, 2009), I test this prediction by using exogenous…

Proceedings of the National Academy of Sciences of the USA, PNAS

Gender, Social Norms, and Survival in Maritime Disasters

Mikael Elinder and Oscar Erixson

Since the sinking of the Titanic, there has been a widespread belief that the social norm of “women and children first” (WCF) gives women a survival advantage over men in maritime disasters, and that captains and crew members give priority to passengers.…

Critical Review: A Journal of Politics and Society

Poverty and Causality

Tino Sanandaji

David Brady argues that low European poverty rates are a result of the welfare state. His finding relies on a relative measure of poverty, according to which the threshold for being poor differs across countries. Using the American poverty threshold as a fixed…

Energy Economics

Optimal Transmission Regulation of an Integrated Energy Market

Thomas Tangerås

The capacity of the transmission network determines the extent of integration of a multi-national energy market. Cross-border externalities render coordination of network capacity valuable. Is it then optimal to collect regulatory powers in the hands of a single…

Public Choice

The Calculus of Consent: Some Swedish Connections

Niclas Berggren

As we celebrate the 50th anniversary of the publication of The Calculus of Consent (Buchanan and Tullock 1962; henceforth denoted CofC), I will dwell on some ways in which it relates to Sweden. At first, it may seem strange to connect a monumental work by two…

Review of Austrian Economics

Time for Behavioral Political Economy? An Analysis of Articles in Behavioral Economics

Niclas Berggren

This study analyzes leading research in behavioral economics to see whether it contains advocacy of paternalism and whether it addresses the potential cognitive limitations and biases of the policymakers who are going to implement paternalist policies. The findings…

Economics of Innovation and New Technology

Commercialization, Renewal, and Quality of Patents

Roger Svensson

One of the major reasons why inventors are awarded patents by governments is they encourage R&D investments and commercialization of inventions. If the patent holder commercializes his/her invention, he/she has stronger incentives to retain the patent. The…

Management Science

The Behavioral Genetics of Behavioral Anomalies

David Cesarini, Magnus Johannesson, Patrik K. E. Magnusson and Björn Wallace

A number of recent papers have examined the environmental and genetic sources of individual differences in economic and financial decision making. Here we contribute to this burgeoning literature by extending it to a number of key behavioral anomalies that are…

RAND Journal of Economics

Fines, Leniency, and Rewards in Antitrust

Maria Bigoni, Sven-Olof Fridolfsson, Chloé Le Coq and Giancarlo Spagnolo

This article reports results from an experiment studying how FINES, LENIENCY, and REWARDS for whistleblowers affect cartel formation and prices. Antitrust without LENIENCY reduces cartel formation but increases cartel prices: subjects use costly FINES as punishments.…

American Economic Review: Papers & Proceedings

Liberalized Trade and Worker-Firm Matching

Carl Davidson, Fredrik Heyman, Steven Matusz, Fredrik Sjöholm and Susan Chun Zhu

Income Shifting in Sweden: An Empirical Evaluation of the 3:12 Rules. Report to the Expert Group on Public Economics 2012:4

Appendix III: Taxes and the Choice of Organizational Form by Swedish Business Owners

Karin Edmark and Roger Gordon

Economics: The Open-Access, Open-Assessment E-Journal

From Trade Preferences to Trade Facilitation: Taking Stock of the Issues

Maria Persson

The objective of the paper is to explore and give an overview of two central policy alternatives to improve the integration between the European Union and developing countries by removing barriers to trade: trade preferences and trade facilitation. The author reviews…

JCMS: Journal of Common Market Studies

Completing the European Union Customs Union: The Effects of Trade Procedure Harmonization

Yves Bourdet and Maria Persson

In this article, it is pointed out that the European Union does not have a harmonized practice when it comes to trade procedures, implying that countries in the rest of the world face different trade barriers depending on which EU country they ship their goods to.…

Journal of Urban Economics

Cultural Transmission and Discrimination

Maria Sáez-Martí and Yves Zenou

Workers can have good or bad work habits. These traits are transmitted from one generation to the next through a learning and imitation process, which depends on parents’ investment in the trait and the social environment where children live. If a sufficiently…

Information Economics and Policy

Network Neutrality on the Internet: A Two-sided Market Analysis

Nicholas Economides and Joacim Tåg

We discuss network neutrality regulation of the Internet in the context of a two-sided market model. Platforms sell broadband Internet access services to residential consumers and may set fees to content and application providers on the Internet. When access is…

Small Business Economics

Taxation and Entrepreneurship in a Welfare State

Mikael Stenkula

Does tax policy affect the rate of selfemployment in a modern welfare state? This question is analyzed empirically based on Swedish data for the entire postwar period. Available tax data indicate that payroll taxes have had a negative influence on the unincorporated…

Review of Income and Wealth

Gender and Work Compensation in China's Industrial Sector

Johanna Rickne

The gender gap in earnings is analyzed using data for 250,000 Chinese industrial firms in 2004. The skill-weighted gender wage is estimated to be 12 percent and stems entirely from the female wage disadvantage among employees with below college education.…

Journal of Public Economics

Nonparametric Structural Estimation of Labor Supply in the Presence of Censoring

Che-Yuan Liang

This paper extends the nonparametric structural method to estimate labor supply developed by Blomquist and Newey (2002) to handle cases in which there are individuals who do not work. The method is then applied to married women in Sweden from 1973 to 1999. I find an…

Journal of Institutional Economics

The Growth Effects of Institutional Instability

Niclas Berggren, Andreas Bergh and Christian Bjørnskov

We study the effects of institutional instability on growth. Using principal components analysis, we construct measures of institutional quality and instability from the political risk index of the International Country Risk Guide. A panel-data analysis of 132…

Journal of Applied Finance

Corporate Distress and Restructuring with Macroeconomic Fluctuations: The Cases of GM and Ford

Lars Oxelheim and Clas Wihlborg

Although macroeconomic factors are part of several models for evaluation of credit risk, there is little effort to distinguish between effects of such factors and “intrinsic” factors on changes in credit risk. We argue that lenders, management, courts and…

The Oxford Handbook of Private Equity

The Real Effects of Private Equity Buyouts

Joacim Tåg

Journal of Political Economy

Ethnic Diversity and Preferences for Redistribution

Matz Dahlberg, Karin Edmark and Heléne Lundqvist

This paper investigates the causal link between the ethnic diversity in a society and its inhabitants’ preferences for redistribution.We exploit exogenous variation in immigrant shares stemming from a nationwide program placing refugees in municipalities…

Institutional Entrepreneurship. The International Library of Entrepreneurship 24

Institutional Entrepreneurship: An Introduction

Magnus Henrekson and Tino Sanandaji

European Economic Review

Entrepreneurial Innovations, Competition and Competition Policy

Pehr-Johan Norbäck and Lars Persson

We construct a model where an entrepreneur can innovate for entry or for sale. It is shown that increased product market competition tends to increase the relative profitability of innovation for sale. Increased competition not only reduces the profits of entrants…

Journal of Economic Behavior & Organization

Credible Communication and Cooperation: Experimental Evidence from Multi-stage Games

Ola Andersson and Erik Wengström

It is well known that communication often serves as a facilitator for cooperation in static games. Yet, communication can serve entirely different purposes in dynamic settings as communication during the game may work as a means for renegotiation, potentially…

Journal of Public Economics

Intergenerational Top Income Mobility in Sweden: Capitalist Dynasties in the Land of Equal Opportunity?

Anders Björklund, Jesper Roine and Daniel Waldenström

This paper presents new evidence on intergenerational mobility at the top of the income and earnings distributions. Using a large dataset of matched father-son pairs in Sweden, we find that intergenerational transmission is very strong at the top, more so for income…

Regional Science and Urban Economics

Urban Villages and Housing Values in China

Yan Song and Yves Zenou

The presence of urban villages is a unique product of China's urbanization. In this article, we explore the effects of urban villages on the formal housing market. For this purpose, we develop a hedonic housing price model to investigate whether the proximity to…

Journal of Law, Economics, and Organization

Juvenile Delinquency and Conformism

Eleonora Patacchini and Yves Zenou

This article studies whether conformism behavior affects individual outcomes in crime. We present a social network model of peer effects with ex ante heterogeneous agents and show how conformism and deterrence affect criminal activities. We then bring the model to…

Corporate Governance: An International Review

The Swedish Corporate Control Model: Convergence, Persistence or Decline?

Magnus Henrekson and Ulf Jakobsson

Research Question/Issue: In the finance literature theoretical arguments have largely predicted a world-wide convergence towards the Anglo-American model of corporate control. Still, there are few signs that this convergence is underway. This paper…

The Strategic CFO – Creating Value in a Dynamic Market Environment

The CFO's Information Challenge in Managing Macroeconomic Risk

Lars Oxelheim, Clas Wihlborg and Marcus Thorsheim

The Strategic CFO – Creating Value in a Dynamic Market Environment

Exposure-Based Cash-Flow-at-Risk for Value-Creating Risk Management Under Macroeconomic Uncertainty

Niclas Andrén, Håkan Jankensgård and Lars Oxelheim

Public Choice

Is Tolerance Good or Bad for Growth?

Niclas Berggren and Mikael Elinder

We investigate how tolerance, as measured by attitudes toward different types of neighbors, affects economic growth in a sample of 54 countries. Unlike previous studies, by Richard Florida and others, we find that tolerance toward homosexuals is negatively related to…

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