475. Lecture Notes on Knowledge and Human Capital in the New Growth Theory

Paul Segerstrom

474. Welfare-State Dynamics

Assar Lindbeck

473. Centralized Bargaining, Multi-Tasking, and Work Incentives

Assar Lindbeck and Dennis J. Snower

The paper examines the implications of an important aspect of the ongoing reorganization of work - the move from occupational specialization toward multi-tasking - for centralized wage bargaining. The analysis shows how, on account of this reorganization,…

472. Managerial Incentives and Market Integration

Jörgen W. Weibull

This paper develops a new analytical approach to the old question whether market conditions may influence the internal efficiency of firms. The basic textbook model of the firm is slightly extended to incorporate managers' incentives to reduce production…

471. A Schumpeterian Model of Protection and Relative Wages

Elias Dinopoulos and Paul Segerstrom

This paper presents a dynamic general equilibrium model of trade between two advanced countries in which both innovation and skilled acquisition rates are endogenously determined. The model offers a North-North (as opposed to a North-South) trade…

470. The Within-Job Gender Wage Gap: The Case of Sweden

Trond Petersen, Eva Meyerson and Vemund Snartland

For the U.S. and for Norway it has been established that men and women working in the same occupation for the same employer receive more or less the same pay. So-called within-job wage discrimination is hence not a driving force for the gender wage gap.…

469. Full Employment and the Welfare State

Assar Lindbeck

What were the asserted complementarities between the welfare state and full-employment policies, and why do these complementarities look less convincing today?

468. Foreign Direct Investment, Capital Formation and Labour Costs: Theory and Evidence for Germany

Jan Hatzius

This paper shows that the liberalisation of foreign direct investment (FDI) tends to make the effect of labour costs on domestic investment and labour demand more negative. Using data from Germany, it then provides evidence that is consistent with this…

467. High-Technology Subsidies in General Equilibrium: A Sector-Specific Approach

Karolina Ekholm and Johan Torstensson

We use a specific-factor model to examine the conditions under which policy-makers are able to increase aggregate production of high-tech goods by production or R&D-subsidies in the short and long run. The difficulties for the policy-makers in…

466. The West European Employment Problem

Assar Lindbeck

How do we explain the poor employment performance in Western Europe since about the-1970s? This question is in fact twofold : What initiated the dramatic rise in employment, and waht mechanisms have made it continue for so long? My attemps to answer these…

465. A Unified Treatment of Horizontal Direct Investment, Vertical Direct Investment, and the Pattern of Trade in Goods and Services

James R. Markusen, Anthony J. Venables, Denise Eby Konan and Kevin H. Zhang

This paper contributes to research endogenizing multinational firms in general-equilibrium trade models. We attempt to integrate separate contributions on horizontal multinationals which produce the same final product in multiple locations, with work on…

464. Multinationals without Advantages

Massimo Motta

We propose a simple model to analyze the widespread idea that a necessary condition for firms to make foreign direct investments is that they have firm-specific advantages with respect to host country firms. We show that no such advantages are necessary…

463. Lecture Notes on International Trade and Imperfect Competition

Anthony Venables

These notes discuss some of the main results and models from the theory of international trade under imperfect competition. They are necessairy both selective and superficial. Multinationals are conspicuous by their absence, and the reader is referred to…

462. Swedish Multinational Corporations: Recent Trends in Foreign Activities

Pontus Braunerhjelm, Karolina Ekholm, Lennart Grundberg and Patrik Karpaty

This paper presents recent trends in the foreign activities of Swedish multinationals. The focus is on the distribution of production and R&D between the MNCs' domestic and foreign units, and the pattern of trade within the firms. Issues…

461. Does Equality Promote Growth?

Stefan Fölster and Georgi Trofimov

Several recent articles claim that pre-tax income equality promotes growth. Equality is argued to dampen demand for redistributive economic policies that tax returns to growth-enhancing activities such as investment. These results rest heavily on the…

460. Sweden's Relative Economic Performance: Lagging Behind or Staying on Top?

Magnus Henrekson

The purpose of this papers is confined to illuminating the aspect: Has Sewedish economic growth been slow relative to other industrialised countries in recent decades, i.e. is Sweden lagging behind

459. Utilization of R&D Results in the Home and Foreign Plants of Multinationals

Gunnar Fors

This paper analyzes the utilization of R&D results in the home and foreign plants of Swedish multinational enterprises (MNEs). The empirical findings indicate that the firms' R&D undertaken in the home country is used as an input in both the…

458. Overseas R&D by Multinationals in Foreign Centers of Excellence

Gunnar Fors and Mario Zejan

This paper examines the determinants of overseas R&D by Swedish multinationals. Our empirical results indicate that the location of R&D abroad to a large extent is motivated by the need to adapt products and processes to conditions in the foreign…

457. R&D and Foreign Sales in Multinationals: A Simultaneous Relationship?

Gunnar Fors and Roger Svensson

This paper analyzes the simultaneous relationship between R&D and foreign sales in Swedish multinational enterprises in the manufacturing sector. We argue that this two-way relationship should especially apply to multinationals based in small open…

456. Technology Transfer to Foreign Affiliates by Multinational Enterprises

Gunnar Fors

This paper examines whether Swedish multinational enterprises transfer R&D-generated knowledge to their foreign affiliates. The empirical results suggest that such technology transfer takes place from parent companies to affiliates, especially in the…

455. Cost and Productivity Effects of Firm Financed Training

Eugenia Kazamaki Ottersten, Thomas Lindh and Erik Mellander

A quality-adjusted specification of labor is suggested which allows firm training to affect labor efficiency. To assess the cost and productivity effects, this specification is integrated into a flexible neoclassical cost function. The empirical analysis…

454. Social Insurance Based on Personal Savings Accounts: A possible reform strategy for overburdened welfare states?

Stefan Fölster

In spite of some cutbacks in entitlements, many welfare states' spending has continuously increased over the past decades, leading to larger tax burdens and often higher marginal tax rates. Proposals for reform often focus on reduced social insurance…

453. Social Norms, the Welfare State, and Voting

Assar Lindbeck, Sten Nyberg and Jörgen Weibull

This paper analyzes the interplay between economic incentives and social norms in a public finance context. We assume that to live off one's own work is a social norm, and that the larger the population fraction adhering to this norm, the more…

452. The Size Distribution of Businesses. Part I: A Benchmark Case

John Sutton

This paper examines the evolution of a skew distribution of firm sizes from the viewpoint of the 'Bounds' approach to market structure. It confines attention to the role played by non-strategic factors (statistical independence, and cost side…

451. Price Dynamics and Production Lags

Assar Lindbeck and Dennis J. Snower

The paper shows how prolonged price inertia can arise in a macroeconomic system in which there are temporary price rigidities as well as production lags in the use of intermediate goods. In this context, changes in production demand - generated, say, by…

450. Neutrally Stable Outcomes in Cheap Talk Games

Abhijit Banerjee and Jörgen W. Weibull

This paper examines equilibrium and stability in symmetric two-player cheap-talk games. In particular, we characterize the set of neutrally stable outcomes in finite cheap-talk 2 x 2 coordination games. This set is finite and functionally independent of…

449. Incentives in the Welfare State: Lessons for would-be welfare states

Assar Lindbeck

This paper deals with economic incentives and welfare-state arrangements in OECD countries. This paper emphasises what may be called "dynamic" incentive issues, i.e. incentive effects that envolve over time. The discussion also covers the…

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