1999


525. Evolution and Refinement with Endogenous Mistake Probabilities

Jörgen W. Weibull and Eric van Damme

Bergin and Lipman (1996) show that the refinement effect from the random mutations in the adaptive population dynamics in Kandori, Mailath and Rob (1993) and Young (1993) is due to restrictions on how these mutation rates vary across population states. We…


524. Intel Economics

Paul S. Segerstrom

This paper presents a model to explain why both industry leaders and follower firms often invest in R&D and explores the welfare implications of these R&D investment choices. Regardless of initial conditions, the equilibrium path in this model…


523. Swedish Multinationals and Competition from High- and Low-Wage Locations

Henrik Braconier and Karolina Ekholm

This study uses data on Swedish multinationals to estimate cross elasticities of labour demand in different locations. With a vertical decomposition of the firm's activities, whether there is substitution or complementarity between employment in different…


522. Does Foreign Direct Investment Replace Home Country Investment? The Effect of European Integration on the Location of Swedish Investment

Pontus Braunerhjelm and Lars Oxelheim

The purpose of this paper is to examine the effects of European integration on the location of investments by Swedish multinational corporations (MNCs). Evidence is presented about the extent to which European integration has attracted investment by…


521. Testing the Female Underperformance Hypothesis

Anita Du Rietz and Magnus Henrekson

Most previous studies have found evidence at the aggregate level that female entrepreneurs underperform relative to their male counterparts. This study conducts a comprehensive test of this finding. The test is conducted on a large Swedish sample of 4200…


520. Cumulative Effects of Labor Market Distortions

Pehr-Johan Norbäck

This paper considers a small open economy whit an input-output industrial structure that creates vertical linkages multiple equilibria. An imperfect labor market is introduced by assuming unionized labor. It is shown that a deregulation of the labor…


519. Multinationals, Endogenous Growth and Technological Spillovers: Theory and Evidence

Richard E. Baldwin, Henrik Braconier and Rikard Forslid

FDI has received surprisingly little attention in theoretical and empirical work on openness and growth. This paper presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is novel since…


518. The Multi-Dimensional Nature of Labor Demand and Skill-Biased Technical Change

Erik Mellander

Investigating the robustness of the skill-biased technical change hypothesis, this analysis incorporates two novel features. First, effective labor is modeled as the product of a quantity measure - number of employees with a given level of education - and…


517. The Prize in Economic Sciences in Memory of Alfred Nobel - 1969-1998

Assar Lindbeck

In conjunction with its tercentenary celebrations in 1968, Sveriges Riksbank (Bank of Sweden) instituted a new award, "The Central Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel" on the basis of an economic commitment by the bank in…


516. Predation and Mergers: Is Merger Law Counterproductive?

Lars Persson

This paper studies the interaction between the incentives for predation and mergers. I show that the incentive for predation in an oligopoly is limited by the subsequent competition for the prey. This bidding competition is especially fierce when the…


515. The Equilibrium Ownership of an International Oligopoly

Henrik Horn and Lars Persson

Mergers and acquisitions (M&A) is the dominant form of Foreign Direct Investment (FDI), but has received but scarce attention in the theory literature on trade and investment. This paper highlights how the international pattern of ownership of…


514. The Auctioning of a Failing Firm

Lars Persson

This paper evaluates the welfare consequences of the failing firm doctrine in the EU and US merger laws. I combine an oligopoly model with an "endogenous valuations" auction model. Thereby, I take into account that, in an oligopoly, a firm's willingness…


513. Endogenous Mergers in Concentrated Markets

Henrik Horn and Lars Persson

This paper proposes an approach for prediction the pattern of mergers when different mergers are feasible. It generalizes the traditional IO approach, employing ideas on coalition-formation from cooperative gave theory. The model suggests that in…


512. Multinational Firms, Technology and Location

Pehr-Johan Norbäck

This paper analyzes a three-stage optimization problem in which a firm chooses (i) its technology, by deciding on a level of R&D, (ii) whether this technology is to be used in a domestic or in a foreign plant and (iii) the quantity produced and sold…


511. Why Mergers Reduce Profits, and Raise Share Prices

Sven-Olof Fridolfsson and Johan Stennek

We demonstrate a "preemptive merger mechanism" which may explain the empirical puzzle why mergers reduce profits, and raise share prices. A merger may confer strong negative externalities on the firms outside the merger. If being an "insider" is better…


510. Institutions for the Selection of Entrepreneurs: Implications for Economic Growth and Financial Crises

Pavel Pelikan

The search for growth-promoting policies is found to demand knowledge of how growth depends upon actions of entrepreneurs and how these actions depend upon the prevailing institutions. While institutions have extensively been examined for their influences…

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