Published articles in English 2016

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International Labour Review

Employer Attitudes Towards Refugee Immigrants: Findings from a Swedish Survey

Per Lundborg and Per Skedinger

Based on a large-scale survey of Swedish firms, the authors identify significant heterogeneity in their attitudes towards refugee hiring, job performance, wage setting and discrimination, though experience of employing refugees reduces negative attitudes.…

World Economy

Heterogeneous Firms, Globalisation and the Distance Puzzle

Mario Larch, Pehr-Johan Norbäck, Steffen Sirries and Dieter M. Urban

Despite the strong pace of globalisation, the distance effect on trade is persistent or even growing over time (Disdier and Head, 2008). To solve this distance puzzle, we use the recently developed gravity equation estimator from Helpman et al. (2008) (HMR…

Economic History Review

Inheritance Taxation in Sweden, 1885–2004: The Role of Ideology, Family Firms and Tax Avoidance

Magnus Henrekson and Daniel Waldenström

This article studies the evolution of Swedish inheritance taxation since the late nineteenth century to its abolition in 2004. The contribution of this article is twofold. First, the annual effective inheritance tax rates are computed for different sizes of bequests…

Economic History Review

Periodic Recoinage as a Monetary Tax: Conditions for the Rise and Fall of the Bracteate Economy

Roger Svensson

Scholars in the fields of archaeology and numismatics have long been familiar with the phenomenon of periodic recoinage (renovatio monetae), which dominated monetary taxation in medieval Europe for almost 200 years. However, this form of monetary taxation is seldom,…

European Economic Review

Hierarchies and Entrepreneurship

Joacim Tåg, Thomas Åstebro and Peter Thompson

We establish a correlation between the hierarchical structure of a firm and the likelihood of business creation among its former employees, using a sample of 16 million observations of Swedish workers and a novel proxy for hierarchies based on occupation data.…

International Journal of Game Theory

Strategic Complementarities, Network Games and Endogenous Network Formation

Andreas Lagerås and David Seim

This paper investigates the role of strategic complementarities in the context of network games and network formation models. In the general model of static games on networks, we characterize conditions on the utility function that ensure the existence and uniqueness…

Journal of Money, Credit and Banking

Mixed Integer Programming Revealed Preference Tests of Utility Maximization and Weak Separability of Consumption, Leisure and Money

Per Hjertstrand, James L. Swofford and Gerald A. Whitney

Swofford and Whitney (1987, 1988, 1994) investigated the validity of two key assumptions underlying representative agent models of macroeconomics. These assumptions are utility maximization and weak separability. Using mixed integer programming, we check revealed…

Journal of the European Economic Association

Risk Aversion Relates to Cognitive Ability: Preferences or Noise?

Ola Andersson, Håkan J. Holm, Jean-Robert Tyran and Erik Wengström

Recent experimental studies suggest that risk aversion is negatively related to cognitive ability. In this paper we report evidence that this relation may be spurious. We recruit a large subject pool drawn from the general Danish population for our experiment. By…

Government and Opposition

Distrust in Utopia? Public Perceptions of Corruption and Political Support in Iceland before and after the Financial Crisis of 2008

Gissur Ó. Erlingsson, Jonas Linde and Richard Öhrvall

In the middle of the first decade of the twenty-first century Iceland was ranked as the least corrupt country in the world by Transparency International and enjoyed top positions in most comparative indices of governance and development. In 2008 the banking system…

Journal of Labor Economics

The Making of a Manager: Evidence from Military Officer Training

Erik Grönqvist and Erik Lindqvist

We show that officer training during the Swedish military service has a strong positive effect on the probability of attaining a managerial position later in life. The most intense type of officer training increases the probability of becoming a civilian manager by…

Industrial Relations: A Journal of Economy and Society

Employment Protection Reform, Enforcement in Collective Agreements and Worker Flows

Fredrik Heyman and Per Skedinger

We analyze a reform of notice periods for employer-initiated separations in Sweden, which reduced the notice periods for newly hired older workers substantially but implied minor or no changes in the advance notices for younger workers. The reform was initiated at…

Economics & Human Biology

Migrants, Health, and Happiness: Evidence that Health Assessments Travel with Migrants and Predict Well-Being

Martin Ljunge

Health assessments correlate with health outcomes and subjective well-being. Immigrants offer an opportunity to study persistent social influences on health where the social conditions are not endogenous to individual outcomes. This approach provides a clear…

Journal of Entrepreneurship and Public Policy

Two Sides to the Evasion: The Pirate Bay and the Interdependencies of Evasive Entrepreneurship

Niklas Elert, Magnus Henrekson and Joakim Wernberg

Purpose – Evasive entrepreneurs innovate by circumventing or disrupting existing formal institutional frameworks. Since such evasions rarely go unnoticed, they usually lead to responses from lawmakers and regulators. The paper aims to discuss this…

Economics Letters

Job Polarization, Job Tasks and the Role of Firms

Fredrik Heyman

Using detailed Swedish matched employer–employee data, I show evidence of within-firm job polarization. Applying a decomposition framework, I find that both within-firm and between-firm components are important for overall job polarization. Results also…

Review of International Economics

Global Engagement, Complex Tasks and the Distribution of Occupational Employment

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

We construct a task-based model of the firm's choice of occupational inputs to examine how that choice varies with greater global engagement. We assume that more complex tasks are more costly to complete. Within the structure of our model, firms skew employment…

Review of Austrian Economics

Does Belief in Objective Morality Lead to Coercion? An Analysis of the Arguments of Kelsen and Buchanan

Niclas Berggren

Two leading scholars of the 20th century – Hans Kelsen and James Buchanan – both suggested that belief in an objective morality entails a disparaging attitude towards political and individual freedom. The main point was similar: Why let people decide for…

Journal of Business Ethics

Macroeconomic Fluctuations as Sources of Luck in CEO Compensation

Hsin-Hui Chiu, Lars Oxelheim, Clas Wihlborg and Jianhua Zhang

Macroeconomic fluctuations in interest rates, exchange rates, and inflation can be considered sources of good or bad “luck” for corporate performance if management is unable to adjust operations to these fluctuations. Based on a sample of 2,091 US firms,…

International Journal of Industrial Organization

International Network Competition under National Regulation

Thomas Tangerås and Joacim Tåg

We extend the workhorse model of network competition to international calls. This model enables us to show that national regulatory authorities (NRAs) maximizing domestic welfare have incentives to increase termination rates above the social optimum to extract rent…

Asian Economic Papers

The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries

Cynthia J. Campbell, Rosita P. Chang, Jack C. De Jong Jr., Robert Doktor, Lars Oxelheim and Trond Randøy

This study examines the impact of the prevalence of long-term equity-based chief executive officer (CEO) compensation incentives on GDP growth, and we address the moderating role of individualist versus collectivist cultures on this relationship. We argue that…

Journal of Business Venturing

Creative Destruction and Productive Preemptive Acquisitions

Pehr-Johan Norbäck, Lars Persson and Roger Svensson

We develop a model of entrepreneurial innovation for entry and sale into oligopolies suitable for welfare analysis. We show that the expected consumer welfare can be higher under commercialization by sale than under commercialization by entry despite increased market…

Quarterly Journal of Economics

Wealth, Health, and Child Development: Evidence from Administrative Data on Swedish Lottery Players

David Cesarini, Erik Lindqvist, Robert Östling and Björn Wallace

We use administrative data on Swedish lottery players to estimate the causal impact of substantial wealth shocks on players’ own health and their children’s health and developmental outcomes. Our estimation sample is large, virtually free of attrition,…

Quarterly Journal of Political Science

Electoral Competition and Gender Differences in Political Careers

Olle Folke and Johanna Rickne

This paper analyzes the role of competition between political parties for the promotion and turnover of social minorities in party organizations. We collect extensive and reliable panel data for the career trajectories of all Swedish politicians in 290 municipal…

Small Business Economics

Evasive Entrepreneurship

Niklas Elert and Magnus Henrekson

We argue that evasive entrepreneurship is an important, although underrated, source of innovation, and provide the first systematic discussion of the concept. We define evasive entrepreneurship as profit-driven business activity in the market aimed at circumventing…

Journal of Institutional Economics

Does Social Trust Speed Up Reforms? The Case of Central-Bank Independence

Niclas Berggren, Sven-Olov Daunfeldt and Jörgen Hellström

Many countries have undertaken central-bank independence reforms, but the years of implementation differ. What explains such differences in timing? This is of interest more broadly, as it sheds light on factors that matter for the speed at which economic reforms come…

Journal of Applied Corporate Finance

Why FX Risk Management Is Broken – And What Boards Need to Know to Fix It

Håkan Jankensgård, Alf Alviniussen and Lars Oxelheim

This article provides a comprehensive critique of current corporate foreign exchange risk management (FXRM) practices. The authors characterize much of FXRM as a “legacy” activity, a set of outdated, often decentralized and “earnings-driven”…

Applied Economics Letters

Do the Poor Benefit from Globalization Regardless of Institutional Quality?

Andreas Bergh, Irina Mirkina and Therese Nilsson

Despite significant progress towards the Millennium goals, more than one billion people live on less than 1.25 US dollars per day. Previous research suggests that globalization stimulates poverty reduction, but does not investigate what role institutions play in this…

American Political Science Review

Gender Quotas and Women's Political Leadership

Diana Z. O'brien and Johanna Rickne

Though more than 100 countries have adopted gender quotas, the effects of these reforms on women's political leadership are largely unknown. We exploit a natural experiment—a 50–50 quota imposed by the national board of the Swedish Social Democratic…

Oxford Handbook of the Economics of Networks

Key Players

Yves Zenou

In this chapter, we provide an overview of the literature on key players in networks. We first introduce the theoretical concept of the key player who is the agent that should be targeted by the planner so that, once removed, she will generate the highest level of…

Independent Review

Regime Uncertainty and the Great Recession: A Market-Process Approach

Wolf von Laer and Adam G. Martin

Uncertainty triggered by government policy may have played a large role in the U.S. economy’s slow recovery from the Great Recession. Whether or not it is the leading cause of the sluggishness, regime uncertainty is a powerful idea that adds nuance to the…

American Journal of Agricultural Economics

Competitive Pressure and Technology Adoption: Evidence from a Policy Reform in Western Canada

Shon Ferguson and M. Rose Olfert

We estimate the impact that removing a railway transportation subsidy has on the adoption of production technology for Western Canadian farms by using a unique combination of census and freight rate data. We exploit the large regional variation in these one-time…

Nordic Economic Policy Review

Ethnic Fractionalization and the Demand for Redistribution – Potential Implications for the Nordic Model

Johanna Möllerström

A distinctive feature of the Nordic model is that economic resources are redistributed between citizens to a high degree. Historically, the Nordic voters have expressed a higher demand for such redistribution than people in other parts of the world. This paper…

Nordic Economic Policy Review

The Future of Welfare Services: How Worried Should We Be about Baumol, Wagner and Ageing?

Andreas Bergh

Welfare services are an important part of the Nordic welfare states both financially and for welfare state redistribution. Baumol’s cost disease, Wagner’s law, and population ageing are often said to bring challenges for the future provision of welfare…

Scandinavian Journal of Public Administration

Experiences of Introducing a Quasi-Market in Swedish Primary Care: Fulfilment of Overall Objectives and Assessment of Provider Activities

Anna Häger Glenngård

Health care as any other public service is subject to many potentially conflicting objectives and many actors. Over time, the traditional goal of health care systems of distributive justice has been accompanied by other objectives and health care reforms have…

Journal of the European Economic Association

The Limits of Career Concerns in Federalism: Evidence from China

Petra Persson and Ekaterina Zhuravskaya

Performance-based promotion schemes in administrative hierarchies have limitations. Chinese provincial leaders, despite facing strong career concerns, make different policy decisions depending on their career backgrounds. Provincial party secretaries who have risen…

British Journal of Political Science

Mechanical and Psychological Effects of Electoral Reform

Jon H. Fiva and Olle Folke

To understand how electoral reform affects political outcomes, one needs to assess its total effect, incorporating how the reform affects the outcomes given the political status quo (the mechanical effects) and the additional reactions of political agents (the…

Foundations and Trends in Entrepreneurship

Owner-Level Taxes and Business Activity

Magnus Henrekson and Tino Sanandaji

In some classes of models, taxes at the owner level are "neutral" and have no effect on firm activity. However, this tax neutrality is sensitive to assumptions and no longer holds in more complex models. We review recent research that incorporates greater…

Journal of Economic Surveys

Government Size and Growth: A Rejoinder

Andreas Bergh and Magnus Henrekson

In our 2011 survey of the literature in the Journal of Economic Surveys on the effect of government size on economic growth in wealthy countries we find a relatively consistent pattern: An increase in government size by 10 percentage points is associated with…

International Tax and Public Finance

Government Consumption Smoothing in a Balanced Budget Regime

Lovisa Persson

I investigate government consumption smoothing (sensitivity) under a balanced budget rule in Swedish municipalities. In general, I find Swedish municipalities to be highly consumption sensitive. Municipalities consume 87.6 % out of predicted current revenues in the…

Journal of Development Economics

Can Selective Immigration Policies Reduce Migrants' Quality?

Simone Bertoli, Vianney Dequiedt and Yves Zenou

Destination countries can adopt selective immigration policies to improve migrants' quality. Screening potential migrants on the basis of observable characteristics also influences their self-selection on unobservables. We propose a model that analyzes the…

Journal of Environmental Economics and Management

Can Indifference Make the World Greener?

Johan Egebark and Mathias Ekström

We conducted a natural field experiment to evaluate two resource conservation programs. One intervention consisted of a moral appeal message asking university employees to cut back on printing in general, and to use double-sided printing whenever possible. The other…

Essays in Public Sector Entrepreneurship

An Innovation Policy Framework: Bridging the Gap Between Industrial Dynamics and Growth

Pontus Braunerhjelm and Magnus Henrekson

Innovation is increasingly considered the key to elevating prosperity and securing sustainable long-term growth. The last few decades have also witnessed a refi nement of previous growth models to include investments in education by individuals and R&D by fi rms.…


An Extended N-Player Network Game and Simulation of Four Investment Strategies on a Complex Innovation Network

Wen Zhou, Nikita Koptyug, Shutao Ye, Yifan Jia and Xiaolong Lu

As computer science and complex network theory develop, non-cooperative games and their formation and application on complex networks have been important research topics. In the inter-firm innovation network, it is a typical game behavior for firms to invest in their…

Industrial and Corporate Change

Are High-Growth Firms Overrepresented in High-Tech Industries?

Sven-Olov Daunfeldt, Niklas Elert and Dan Johansson

It is frequently argued that policymakers should target high-tech firms, i.e., firms with high R&D intensity, because such firms are considered more innovative and therefore potential fast-growers. This argument relies on the assumption that the association among…

Energy Economics

Market-Specific News and Its Impact on Forward Premia on Electricity Markets

Ewa Lazarczyk

This paper studies the impact of market-specific news on the short-term forward premia on the Nordic electricity market. I show that the short-term premia between the day-ahead and intra-day electricity prices on the Nordic market can be partly explained by the…

World Economy

EU Trade Preferences and Export Diversification

Maria Persson and Fredrik Wilhelmsson

Since at least the 1960s, the European Union (EU) has offered various kinds of non-reciprocal trade preferences for developing countries. Originally, these trade preferences had at least two policy goals: (i) to increase export volumes for developing countries and…

Management Science

Deciding for Others Reduces Loss Aversion

Ola Andersson, Håkan J. Holm, Jean-Robert Tyran and Erik Wengström

We study risk taking on behalf of others, both when choices involve losses and when they do not. A large-scale incentivized experiment with subjects randomly drawn from the Danish population is conducted. We find that deciding for others reduces loss aversion. When…

Social Networks

Racial Identity and Education in Social Networks

Eleonora Patacchini and Yves Zenou

We investigate identity issues to explain differences in school performance between students of different races. Using a unique dataset of friendship relationships between students in the US, we show that friendship formation can be taken as a measure of racial…

Scandinavian Journal of Economics

Sickness Absence and Local Benefit Cultures

Assar Lindbeck, Mårten Palme and Mats Persson

In many countries, sickness absence financed by generous insurance benefits is an important concern in the policy debate. There are strong variations in absence behavior among local geographical areas. Such variations are difficult to explain in terms of observable…

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