2004


633. Improving the SGP: Taxes and Delegation rather than Fines

Assar Lindbeck and Dirk Niepelt

We analyze motivations for, and possible alternatives to, the Stability and Growth Pact (SGP). With regard to the former, we identify domestic policy failures and various cross-country spillover effects; with regard to the latter, we contrast an…


632. Taxation of Entrepreneurs Relative to Well Diversified Investors – A Swedish Perspective

Göran Normann

Some high tax countries concerned about outward flight of capital have reacted by imposing so called dual income tax systems. The idea is to keep high taxes on labour while holding low tax rates on capital income received by individual investors and…


631. Intergenerational Education Transmission: Neighborhood Quality and/or Parents' Involvement?

Eleonora Patacchini and Yves Zenou

Using cultural transmission, we develop a model that gives some microfoundation to the impact of residential neighborhood on children's educational attainment and then test it using the UK National Child Development Study. We find that, for high-educated…


630. Mergers by Partial Acquisition

Tobias Lindqvist

This paper evaluates partial acquisition strategies. The model allows for buying a share of a firm before the actual acquisition takes place. Holding a share in a competing firm before the acquisition of another firm, outsider-toehold, eliminates the…


629. Density, Social Networks and Job Search Methods: Theory and Application to Egypt

Jackline Wahba and Yves Zenou

The aim of this paper is to study the impact of the size and the quality of social networks on the probability to find a job. We first develop a theoretical model in which individuals are embedded within a network of social relationships. Workers can…


628. Job Contact Networks and the Ethnic Minorities

Harminder Battu, Paul Seaman and Yves Zenou

This paper examines the job finding methods of different ethnic groups in the UK. The theoretical framework shows that less assimilated ethnic unemployed workers are more likely to use their friends and family as their main method of search but they have…


627. Shirking, Commuting and Labor Market Outcomes

Stephen L. Ross and Yves Zenou

Recent theoretical work has examined the spatial distribution of unemployment using the efficiency wage model as the mechanism by which unemployment arises in the urban economy. This paper extends the standard efficiency wage model in order to allow for…


626. The Organization of the Innovation Industry: Entrepreneurs, Venture Capitalists, and Oligopolists

Pehr-Johan Norbäck and Lars Persson

Exit of venture-backed firms often takes place through sales to incumbents. We show that in such an environment, venture-backed firms have stronger incentive to develop basic innovations into commercialized innovations than incumbents, due to strategic…


625. The Relationship between Domestic and Outward Foreign Direct Investment: The Role of Industry-Specific Effects

Pontus Braunerhjelm, Lars Oxelheim and Per Thulin

Previous research has been inconclusive as regards the effect of outward foreign direct investment (FDI) on domestic investments. In this article we show that this inconclusiveness can be explained at a disaggregated level as a function of the way…


624. Commercialization of Patents and External Financing during the R&D-Phase

Roger Svensson

Using a unique database on individual Swedish patents, a survival model estimates how different factors influence the time it takes until commercialization starts. To the best of my knowledge, such an analysis has not been undertaken before. For external…


623. On the Static Efficiency of Secondary Bond Markets

Lars Oxelheim and Michael Rafferty

The major strand of finance literature understands market efficiency through the market’s ability to process information into prices. Another strand of literature refers to the economists’ usual sense of the word, i.e. that markets ensure that resources…


622. Parallel Imports and the Pricing of Pharmaceutical Products: Evidence from the European Union

Mattias Ganslandt and Keith E. Maskus

We consider policy issues regarding parallel imports (PIs) of brand-name pharmaceuticals in the European Union, where such trade is permitted. We develop a simple model in which an original manufacturer competes in its home market with PI firms. The model…


621. Do Mergers Result in Collusion?

Mattias Ganslandt and Pehr-Johan Norbäck

We examine coordinated effects of mergers in the Swedish retail market for gasoline during the period 1986-2002. Despite significant changes in market concentration and many factors conductive to coordination, the empirical analysis shows that the level…


620. City Structure, Job Search, and Labor Discrimination. Theory and Policy Implications

Harris Selod and Yves Zenou

We consider a search-matching model in which black workers are discriminated against and the job arrival rates of all workers depend on social networks as well as distance to jobs. Location choices are driven by the racial preferences of households (both…


619. Corporate Restructuring and Labor Productivity Growth

Katariina Hakkala

This paper analyzes corporate restructuring and its role in generating labor productivity growth in a sample of large Swedish manufacturing corporations. It is found that external restructuring, including ownership changes, start-ups and closures of…


618. Deadlines and Distractions

Maria Saez-Marti and Anna Sjögren

We analyze the effect of deadlines on timing of effort when agents are occasionaly distracted. We show that agents get started early when completion of the task is uncertain, but rather likely. Agents who are rarely distracted will always postpone effort…


617. Who's Who in Crime Networks. Wanted: The Key Player

Coralio Ballester, Antoni Calvó-Armengol and Yves Zenou

Criminals are embedded in a network of relationships. Social ties among criminals are modeled by means of a graph where criminals compete for a booty and benefit from local interactions with their neighbours. Each criminal decides in a non-cooperative way…


616. Location of R&D and High-Tech Production by Vertically Integrated Multinationals

Karolina Ekholm and Katariina Hakkala

This paper presents evidence that, in Europe, production of high-tech goods is attracted to large markets, while R&D activities tend to be located away from them. In order to explain this phenomenon, we develop a two-country general equilibrium model…


615. Equilibrium Search Unemployment with Explicit Spatial Frictions

Etienne Wasmer and Yves Zenou

Assuming that job search efficiency decreases with distance to jobs, workers' location in a city depends on spatial elements such as commuting costs and land prices and on labour elements such as wages and the matching technology. In the absence of moving…


614. On the Timing of Education

Anna Sjögren and Maria Saez-Marti

We propose a simple investment model which shows that, in the presence of fluctuations in and uncertainty about the opportunity cost of time, marginal individuals may choose to delay their education if the opportunity cost of time is temporarily high.…


613. Trapped, Delayed and Handicapped

Anna Sjögren and Susanna Sällström

The dynamics of self-confidence are modelled in an environment where rational individuals optimally choose educations and occupations with the aim to acquire productive skills while learning about ability. It is shown how the presence of uninformative…


612. Does Regulatory Harmonization Increase Bilateral Asset Holdings?

Jonas Vlachos

By combining new data on bilateral asset holdings with data on securities regulation in an empirical gravity model, it is found that bilateral differences in securities regulation lead to decreased portfolio holdings. Hence, regulatory harmonization can…


611. The Effects of Internationalization on CEO Compensation

Lars Oxelheim and Trond Randøy

This study examines the relation between the internationalization of firms and CEO compensation. Starting from a sample of Norwegian and Swedish listed firms we analyze the effects of internationalization as manifest in the capital market (international…

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