Working Papers 2017

All new research is first presented in a Working Paper (WP) where the target audience is primarily other researchers. All WP’s from recent years are written in English. Since 2006, a Swedish summary has also been included. A WP usually contains research that has progressed enough to be ready to be submitted to a scientific journal for review and potential publication.

1165. Gender Quotas in the Board Room and Firm Performance: Evidence from a Credible Threat in Sweden

Björn Tyrefors Hinnerich and Joakim Jansson

Board room quotas have recently received an increasing amount of attention. This paper provides novel evidence on firm performance from an exogenous change in female board participation in Sweden. We use the credible threat, aimed at listed firms, of a…

1164. Taxation of Swedish Firm Owners: The Great Reversal from the 1970s to the 2010s

Magnus Henrekson

By the late 1960s, real effective taxation of income from individual firm owner­ship in Sweden approached 100 percent. A series of tax reforms initiated in the late 1970s reversed this situation. This paper has a threefold purpose: (1) to…

1163. Age-Dependent Court Sentences and Crime Bunching: Empirical Evidence from Swedish Administrative Data

Björn Tyrefors Hinnerich, Mårten Palme and Mikael Priks

According to Swedish penal code, there is a “rebate” on all prison sentences before the 21st birthday. We exploit this age discontinuity to investigate how individuals respond to harsher punishments. We use a large Swedish dataset, including…

1162. Equilibrium Supply Security in a Multinational Electricity Market with Renewable Production

Thomas Tangerås

An increasing reliance on solar and wind power has raised concern about system ability to consistently satisfy electricity demand. This paper examines countries’ unilateral incentives to achieve supply security through capacity reserves and market…

1161. Tax Progressivity and Top Incomes: Evidence from Tax Reforms

Enrico Rubolino and Daniel Waldenström

We study the link between tax progressivity and top income shares. Using variation from large-scale Western tax reforms in the 1980s and 1990s and the novel synthetic control method, we find large and lasting boosting impacts on top income shares from the…

1160. Trends and Gradients in Top Tax Elasticities: Cross-country Evidence, 1900–2014

Enrico Rubolino and Daniel Waldenström

We compile data spanning the period 1900–2014 and up to 30 countries to study long-run patterns in the tax elasticity of top incomes. Our results show that top tax elasticities vary tremendously over time; they were medium-to-low before 1950,…

1159. Seasonal Social Preferences

Mathias Ekström

Christmas is when people are expected to act selflessly for the well-being of others, but are people actually more altruistic at this time of the year? Responding to this question poses a challenge because of the confounding factors of charitable tax…

1158. Production or Transmission Investments? A Comparative Analysis

Mario Blázquez de Paz

A successful transformation to a carbon neutral energy system requires the correct investments in transmission and production capacity. In a zonal pricing electricity market, the one proposed by the European Commission to integrate the European…

1157. Misvaluation and Financial Constraints: Method of Payment and Buyer Identity in Mergers & Acquisitions

Aron Berg

The paper studies how stock price misvaluation and financial frictions affect whether an acquisition occurs between or within industries and whether the acquirer pays in cash or stocks. I set up a model where stock market misvaluation correlates within…

1156. Do Equal Rights for a Minority Affect General Life Satisfaction?

Niclas Berggren, Christian Bjørnskov and Therese Nilsson

While previous research examines how institutions matter for general life satisfaction and how specific institutions embodying equal rights for gay people matter for the life satisfaction of gays, we combine these two issues to analyze how the latter type…

1155. Human Capital Sorting: The ‘When’ and ‘Who’ of Sorting of Talents to Urban Regions

Lina Ahlin, Martin Andersson and Per Thulin

Sorting of high-ability workers is a main source of urban-rural disparities in economic outcomes. Less is known about when such human capital sorting occurs and who it involves. Using data on 15 cohorts of university graduates in Sweden, we demonstrate…

1154. Entrepreneurial Experimentation: A Key Function in Entrepreneurial Systems of Innovation

Åsa Lindholm-Dahlstrand, Martin Andersson and Bo Carlsson

There is a need for a conceptual approach that, with reference to explicit micro-level mechanisms and processes of industrial dynamics, articulates the role and function of entrepreneurial experimentation in innovation systems. This paper develops the…

1153. Entrepreneurship and Institutions: A Bidirectional Relationship

Niklas Elert and Magnus Henrekson

The interplay between entrepreneurship and institutions is crucial for economic development; however, the view that institutions determine the extent to which entrepreneurial activity is productive is only part of the story. We argue that causality is…

1152. The Market-Promoting and Market-Preserving Role of Social Trust in Reforms of Policies and Institutions

Niclas Berggren and Christian Bjørnskov

Social trust has been identified as a catalyst for reforms. We take the literature further in two ways. First, we make a fine-grained analysis of mechanisms through which social trust enables liberalizing reforms – by strengthening the ability to…

1151. Anarchy, State, and Utopia: Timothy Snyder’s Interpretive Framework for the Holocaust Applied to Norway under the Nazi Occupation, 1940–45

Johan Wennström

Timothy Snyder has suggested an interpretive framework of the Holocaust that runs counter to previous scholarly literature as well as to popular perception. Snyder’s central thesis is that the mass murder of Europe’s Jewish population should…

1150. Institutional Reform for Innovation and Entrepreneurship: An Agenda for Europe

Niklas Elert, Magnus Henrekson and Mikael Stenkula

It is imperative that the economies of the European Union become more entrepreneurial to promote innovation and economic growth. To achieve these goals, we propose a reform strategy with respect to (i) the rule of law and the protection of property…

1149. Grind or Gamble? An Experimental Analysis of Effort and Spread Seeking in Contests

Ola Andersson, Håkan J. Holm and Erik Wengström

We conduct a contest experiment where participants can invest in increasing both the mean and the spread of an uncertain performance variable. Subjects are treated with different prize schemes and in accordance with theory we observe substantial…

1148. The WTO Dispute Settlement System 1995-2015: A Data Set and its Descriptive Statistics

Louise Johannesson and Petros C. Mavroidis

In this paper, we provide some descriptive statistics of the first twenty years of the WTO (World Trade Organization) dispute settlement. The database used in this paper was assembled by the authors and has been publicly available…

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?


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.

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