2011


892. Nuclear Capacity Auctions

Sven-Olof Fridolfsson and Thomas Tangerås

We propose nuclear capacity auctions as a means to improve the incentives for investing in nuclear power. In particular, capacity auctions open the market for large-scale entry by outside firms. Requiring licensees to sell a share of capacity as virtual…


891. The WTO Dispute Settlement System 1995-2010: Some Descriptive Statistics

Henrik Horn, Louise Johannesson and Petros C. Mavroidis

The Dispute Settlement (DS) system is a central feature of the World Trade Organization (WTO) Agreement. This compulsory and binding two-level mechanism for the adjudication of disputes between WTO Members is the most active among international courts.…


890. Network Neutrality and Network Management Regulation: Quality of Service, Price Discrimination, and Exclusive Contracts

Nicholas Economides and Joacim Tåg

We compare four approaches to network neutrality and network management regulation in a two-sided market model: (i) no variations in Quality of Service and no price discrimination; (ii) variations in Quality of Service but no price discrimination; (iii)…


889. What Happens When it's Windy in Denmark? An Empirical Analysis of Wind Power on Price Variability in the Nordic Electricity Market

Johannes Mauritzen

High levels of wind power penetration will tend to affect prices in a deregulated electricity market. Much of the analysis in the literature has focused on the effect that wind power has on average electricity prices, this paper attempts to test the…


888. What Can International Finance Add to International Strategy?

Lars Oxelheim, Trond Randøy and Arthur Stonehill

This chapter focuses on the role of corporate financial strategies to improve firms’ market valuations, and thus lower their cost of capital. The identification of successful strategies is accomplished within an overall strategic framework and…


887. Intelligence, Self-confidence and Entrepreneurship

Andrea Asoni

I investigate the effect of human capital on entrepreneurship using the National Longitudinal Survey of Youth - 1979. I find that individuals with higher measured intelligence and self-confidence are more likely to be entrepreneurs. Furthermore I present…


886. Like What You Like or Like What Others Like? Conformity and Peer Effects on Facebook

Johan Egebark and Mathias Ekström

Users of the social networking service Facebook have the possibility to post status updates for their friends to read. In turn, friends may react to these short messages by writing comments or by pressing a Like button to show their appreciation. Making…


885. South-South FDI and Development in East Asia

Robert E. Lipsey and Fredrik Sjöholm

This paper attempts to measure the size of South-South FDI in developing East Asia and the trends in it, and the characteristics of the investing countries and the investments themselves. It also summarizes the findings of studies in individual countries…


884. The Intergenerational Transmission of Cognitive and Non-Cognitive Abilities

Erik Grönqvist, Björn Öckert and Jonas Vlachos

We study the intergenerational transmission of cognitive and non-cognitive abilities between fathers and sons using population-wide enlistment data. Measurement error bias in fathers’ ability measures is corrected for using two sets of instruments.…


883. 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,…


882. Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study

Christer Andersson, Ola Andersson and Tommy Andersson

This paper considers the sealed bid and ascending auction, which both identifies the minimum Walrasian equilibrium prices and where truthful preference revelation constitutes an equilibrium. Even though these auction formats share many theortical…


881. Reaping the Benefits of Deeper Euro-Med Integration Through Trade Facilitation

Yves Bourdet and Maria Persson

The current political turmoil in the Arab world has contributed to renewed interest in the Barcelona Process. This paper explores whether deeper integration in the form of trade facilitation – i.e. improved and simplified trade procedures –…


880. Exploring the Long-Term Evolution of Trade Survival

Wolfgang Hess and Maria Persson

Aiming to explore how the survival of trade flows has evolved over time, we analyze a rich data set of detailed imports to individual EU15 countries from 140 non-EU exporters, covering the period 1962–2006. We find that short duration is a persistent…


879. Institution-Driven Comparative Advantage, Complex Goods and Organizational Choice

Shon Ferguson and Sara Formai

The theory of the firm suggests that firms can respond to poor contract enforcement by vertically integrating their production process. The purpose of this paper is to examine whether firms' integration opportunities affect the way institutions determine…


878. Endogenous Product Differentiation, Market Size and Prices

Shon Ferguson

Recent empirical evidence suggests that prices for some goods and services are higher in larger markets. This paper provides a demand-side explanation for this phenomenon when firms can choose how much to differentiate their products in a model of…


877. Political Preferences and Public Sector Outsourcing

Mikael Elinder and Henrik Jordahl

There are several theoretical accounts of public sector outsourcing. We note that leading theories give different predictions of the influence of political variables and test the predictions on a Swedish data set in which outsourcing varies between…


876. Employment Protection Reform, Enforcement in Collective Agreements and Worker Flows

Fredrik Heyman and Per Skedinger

We analyse 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…


875. Are Married Spouses Insured by their Partners’ Social Insurance?

Martin Olsson and Peter Skogman Thoursie

We use a Swedish sickness insurance reform to show that among married couples a partner’s benefit level affects spousal labour supply. The spousal elasticity of sick days with respect to the partner’s benefit is estimated to be 0.4, which is about…


874. Outsourcing Public Services: Ownership, Competition, Quality and Contracting

Fredrik Andersson and Henrik Jordahl

We survey the literature on the effects of public sector outsourcing. Guided by theory, we systematically arrange services according to the type and magnitude of their contractibility problems. Taken as a whole, the empirical literature indicates that…


873. The Rise, Fall and Revival of a Capitalist Welfare State: What are the Policy Lessons from Sweden

Andreas Bergh

This paper discusses a number of questions with regard to Sweden’s economic and political development: • How did Sweden become rich? • What explains Sweden’s high level of income equality? • What were the causes of…


872. Income Inequality between Chinese Regions: Newfound Harmony or Continued Discord?

Johan Lyhagen and Johanna Rickne

This paper develops an improved test of economic convergence or divergence using time series methods. The usefulness of the method is illustrated in an analysis of the growth pattern between Chinese regions in 1952–2007. Comparing all combinations…


871. The Importance of Cognitive and Social Skills for the Duration of Unemployment

Verena Niepel

This paper studies how cognitive and social skills in childhood are related to the duration of unemployment in adolescence and early adulthood. I estimate a flexible proportional hazard rate model for the probability of making a transition from…


870. 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…


869. Effects of Increasing Minimum Wages on Employment and Hours: Evidence from Sweden’s Retail Sector

Per Skedinger

This paper examines the effects of collectively agreed increases in real minimum wages on employment transitions and hours among manual workers in the Swedish retail sector over the period 2001–05. The findings indicate that increases in real…


868. Evolutionary Views on Entrepreneurial Processes: Managerial and Policy Implications

Frédéric Delmar and Karl Wennberg

In this paper we outline an evolutionary framework of entrepreneurial processes where by firms are started, grow, and exit from the market. We explain the important of such a framework in explaining both what contextual factor affects entrepreneurial…


867. Acquisitions, Entry and Innovation in Oligopolistic Network Industries

Pehr-Johan Norbäck, Lars Persson and Joacim Tåg

In industries with network effects, incumbents’ installed bases create barriers to entry that discourage entrepreneurs from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the op- tion…


866. Carnegie Visits Nobel: Do Inheritances Affect Labor and Capital Income?

Mikael Elinder, Oscar Erixson and Henry Ohlsson

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


865. Employment Consequences of Employment Protection Legislation

Per Skedinger

This article surveys the literature and adds to the evidence on the impact of employment protection legislation on employment. While stringent employment protection contributes to less turnover and job reallocation, the effects on aggregate employment and…


864. Growth Effects of Fiscal Policies: A Critical Appraisal of Colombier’s (2009) Study

Andreas Bergh and Nina Öhrn

In a recent paper, Colombier (2009) uses a robust estimation technique and claims to find empirical evidence that government size has not been detrimental to growth for OECD countries during the 1970 to 2001 period, and that endogenous growth theory is…


863. Intangible Investment and the Swedish Manufacturing and Service Sector Paradox

Harald Edquist

Since the mid 1990s labor productivity growth in Sweden has been high compared to Japan, the US and the western EU-countries. While productivity growth has been rapid in manufacturing, it has been much slower in the service sector. Paradoxically, all…


862. Globalization and Absolute Poverty – A Panel Data Study

Andreas Bergh and Therese Nilsson

Using panel data from more than 100 countries around the world from 1988 through 2007, this paper examines the relationship between economic and social globalization and absolute income poverty ex post. We use the globalization index developed by Dreher…


861. 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 invention, he has stronger incentives to retain the patent. The…


860. Ethnic Diversity and Preferences for Redistribution

Matz Dahlberg, Karin Edmark and Heléne Lundqvist

In recent decades immigration of workers and refugees to Europe has increased substantially, and the composition of the population in many countries has consequently become much more heterogeneous in terms of ethnic background. If people exhibit in-group…


859. Trust, Leniency and Deterrence

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

This paper presents results from a laboratory experiment studying the channels through which different law enforcement strategies deter cartel formation. With leniency policies offering immunity to the first reporting party, a high fine is the…


858. Government Size and Growth: A Survey and Interpretation of the Evidence

Andreas Bergh and Magnus Henrekson

The literature on the relationship between the size of government and economic growth is full of seemingly contradictory findings. This conflict is largely explained by variations in definitions and the countries studied. An alternative approach – of…


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

Magnus Henrekson and Ulf Jakobsson

This paper explores the effects of deregulation and globalization on the dominant mode of corporate governance in Swedish public firms. The effects are multidimensional—the direction of change in corporate governance cannot be determined by simply…

Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se