IFN in the Press

The independent socialist magazine Monthly Review writes about Paul Baran and Paul Sweezy’s Monopoly Capital claiming it to be "the single most influential work in Marxian political economy to emerge in the United States". Assar Lindbeck, IFN and Stockholm University, is quoted: "In The Political Economy of the New Left (1971), a book that drew much attention in the early 1970s, orthodox Swedish economist Assar Lindbeck focused his criticism on Baran and Sweezy’s Monopoly Capital, claiming that a Keynesian welfare state could resolve the systemic contradictions that they described."

David Cesarini, NYU and affiliated to IFN, an co-authors find in a study “no evidence” that wealth impacts winners’ risk of mortality except for a potential “small reduction” in the consumption of drugs. Cesarini explains: “Our findings suggest that in affluent countries with extensive social safety nets, causal effects of wealth are not a major explanation for the positive relationship between income and longevity, nor of the observed positive relationships between children’s outcomes and their parents’ incomes."

Shadow assistant treasurer Andrew Leigh argued that when it comes to improving Australia’s tax system, there are no short cuts and no quick fixes. The paper refers to a study by  Alexander Ljungqvist (NYU and affiliated to IFN) and Michael Smolyansky: They find “little evidence that corporate tax cuts boost economic activity, unless implemented during recessions”.

Lars Oxelheim, IFN and  Lund University, has written a Letter to the editor at Financial Times. Oxelheim states that helicopter money is used in many European countries, i.e. money printed, borrowed from abroad or taken from foreign aid are spent to provide migrants with a decent standard. "Hence, the last tool in the monetary policy tool box is already used".

How can parents reduce the likelihood of having children who struggle with depression and ADHD, Vox asks: "One new research paper suggests a possible way forward. "Family Ruptures, Stress, and the Mental Health of the Next Generation," by Petra Persson, (affilietad to IFN) and Maya Rossin-Slater, [...] find that mothers who have close relatives die during pregnancy are more likely to have children who then use anti-anxiety medicine later in life.

Standard-Examiner publishes a text about the research by Petra Persson, Stanford University and affiliated to IFN. Among other things the researchers have found that children who were in the womb when a relative died were 25 percent more likely to take medication for ADHD than those who were infants.

Does prospect theory help explain support for Brexit in the UK and for Donald Trump in the US, Bullfax asks. The author refers to research by Henrik Jordahl, IFN: "as Henrik Jordahl has shown, inequality breeds distrust so that even on those (rare?) occasions when elites are correct, many voters don’t believe them. Perhaps, therefore, support for Trump and Brexit are not so much diseases as symptoms of a wider malady."

For Washington-Post Wonkblog Carolyn Y. Johnson writes about research by Petra Persson, Stanford University and affiliated to IFN, and Maya Rossin-Slater: "They found children who were in the womb when a relative died were 25 percent more likely to take medication for ADHD than those who were infants. Those children grew up to be adults who were 13 percent more likely to take prescription drugs for anxiety and 8 percent more likely to take drugs for depression."

"Patents benefit society and individuals alike in fostering new markets and new products" IPWatchdog writes, adding that the patent system is in trouble. The author refers to research by Alexander Ljunqvist, NYU and affiliated to IFN: The Bright Side of Patents, USPTO Office of the Chief Economist, Working Paper No. 2015-2 (Jan. 2016).

General economic opinion is firmly against the idea of rent control, Forbes writes refering to a comment by Assar Lindbeck, IFN and Stockholm University: “In many cases rent control appears to be the most efficient technique presently known to destroy a city—except for bombing.”

Finnish educators are worried. PISA scores fell in 2009 and 2012, The Economist points out. Gabriel Heller Sahlgren, Centre for the Study of Market Reform of Education and affiliated to IFN, explains that "the key question is what led to the surge in Finnish performance between 1965 and 2000, not what is happening in schools today".

a study of almost 294,000 people has identified variants in 74 genes that are associated with educational attainment. In other words, those who carry more of these variants, on average, complete more years of formal schooling, writes The Atlantic. One of the reserachers is Davis Cesarini, NYU and affilated to IFN.

Tim Worstall in Forbes argues that we can not regulate away high rents.He quotes Assar Lindbeck, IFN and Stockholm university saying that Assar “in many cases rent control appears to be the most efficient technique presently known to destroy a city—except for bombing.”

Banking Industry Today reports that "the growing costs of immigration and a housing bubble have paved the way for a 'deep' economic crisis in Sweden and the situation has already begun to deteriorate beyond repair, three Swedish economists wrote in a debate article in Dagens Industri." Andreas Bergh, IFN and Lund University, is one of the economists.

Nima Sanandaji states in Insider that policies did steer sharply to the left during the late 1960s in Sweden. He refers to research by Magnus Henrekson, IFN, who "has concluded that the effective marginal tax rate (marginal tax plus the effect of inflation) that was levied on Swedish businesses at times reached more than 100 percent of their profits".

The Swedish writer Johan Norberg argues in Free Republic that "Sanders' image of Scandinavia is just like the rest of his policies: stuck in the 1970s". He refers to Andreas Bergh, IFN, and Christian Bjørnskov, affiliated to IFN, researchers who have found that trust in others and social cohesion creates the welfare state rather than the other way around.

Critics of behavioral economics often accuse its practitioners of a tacit double standard: Human irrationality is a poor argument for government action because officials are human, writes Bryan Caplan, asking if behavioral economists can neglect such a basic critique of their position: "Yes. In “Time for a Behavioral Political Economy” (Review of Austrian Economics 2012), Niclas Berggren [IFN ]classifies over 300 papers in behavioral economics. The main finding is that "20.7% of all articles in behavioral economics ... contain a policy recommendation and that 95.5% of these do not contain any analysis at all of the rationality or cognitive ability of policymakers".

Referring to a study by Matti Keloharju, Samuli Knüpfer (both affiliated to IFN) and Joacim Tåg, IFN, Nordic business Report believe that their research "confirms that, although female executives are as equally skilled as their male counterparts, they don’t have equal opportunities to reach the top in the executive labor market or get equal pay. It also looks at what causes these gender gaps".

In a Sweden grappling with an unprecedented inflow of refugees, many unthinkable things are becoming thinkable, Bloomberg states, mentioning a lower minimum wage as one of the hot topics in the public debate. “The Swedish model was a competitive advantage when Sweden was a homogeneous industrial society,” said Andreas Bergh, IFN, to Bloomberg: “But now it’s become an obstacle as no one really knows who should take responsibility for the changes that need to be made.”

Bloombergs, Forbes and Harvard Busioness School's Working Knowledge writes about research by Matti Keloharju, Samuli Knüpfer and Joacim Tåg, IFN, documenting "what many already believe: women get fewer opportunities at top positions and lower pay when they get those positions". WK writes: "The worse news is there doesn’t seem to be much women can do to close that gap—no matter how talented, educated, skilled, lucky, ambitious, or genetically gifted they are—unless they can figure out a way to thwart discrimination."

In a collaboration between the School of Economics and Management and the independent foundation Executive Foundation Lund, newly arrived academics will be able to get a business education in the evening and experience during the day “All education will be in English. Presently the Swedish language is a major problem that prevents a lot people from entering the job market”, says Fredrik Andersson, head of the School of Economics and Management and affiliated to IFN.

Wolf von Laer,  Ph.D. Student, writes at the Hufftington Post Blog that "growth requires the three P's: Property Rights, Prices, and Profit and Loss to achieve the three Is of Innovation, Information, and Incentives. Too much government activity disturbs the rules of the game and undermines property rights."

Economic freedom alone is not the answer to our current woes, writes Shailesh Chitnis in Outlook India. He refers to research by Niclas Berggren and Therese Nilsson, IFN: "They find that a stable monetary policy and a strong legal system are consistently associated with greater tolerance. Countries with greater economic freedom and wealth are also more open to homosexuals."

"In an election with the highest turnout in over 20 years, young voters and new immigrants turned out in near-record numbers" writes Metro Canada. Professor Daniel Rubenson, Ryerson University och affilierad to IFN, is quoted saying: “I don’t think it’s a coincidence that turnout was up among young people when both the Liberals and the NDP were looking very strong.” Rubenson believes that “young people tend not to support the Conservative Party.”

The corporate sector beyond Silicon Valley is not trying all that hard to reach the next breakthrough, claims The American Prospect, quoting research by John Asker, Alexander Ljungqvist [affiliated to IFN], and Joan Farre-Mensa: "Publicly traded companies devote just half the percentage of their assets to investment that their privately held counterparts do".

According to a study by Matti Keloharju, affiliated to IFN, and Petri Hukkanen, investors who in mergers and acquisitions offer “precise” bids for company shares yield better market outcomes than those who offer round-numbered bids. “It turns out that if you make a precise bid, the targets are more likely to accept it, and more likely to accept it at a cheaper price. And with cash bids, they’ll generate a more positive market reaction,” says Matti Keloharju to Forbes.

Sweden's prime minister has become the unexpected victim of a global meme, after a lonely-looking picture from parliament went viral, The Local writes about the event citing a tweet from the IFN researcher Richard Öhrvall.

The Atlantic explains that regulations aren’t the only option the government has for discouraging companies from taking on too much risk, referring to research by Alexander Ljungqvist of New York University (affiliated to IFN), Liandong Zhang of City University of Hong Kong, and Luo Zuo of Cornell. Their research show that lowering taxes didn’t have the expected effect of inducing more risk. "The authors conclude that this may be the case because regulators or investors also weigh in, dissuading companies from taking on risky new endeavors. In other words, taxes can be a blunt tool for curbing risk-taking, but they don’t seem to be useful for encouraging it."

Finally, something’s going viral that’s worth your time and attention, the lifestyle site Cheat Sheet writes, meaning "productivity". The author refers to an article by professors Matthew Lindquist, Jan Sauermann, and Yves Zenou (affiliated to IFN), who have dug into literature and several studies relating to productivity. "The conclusion of these researchers is that productivity is indeed contagious, although not always for the same reasons."

To ensure Sweden gets the best out of future digitalization opportunities, the country's legislation needs to be reconsidered, writes Mårten Blix, guest researcher at IFN.

Nicholas P. Cheer, Seeking Alpha, explores the relationship between over indebtedness and GDP growth rates. He refers to a study by Andreas Bergh and Magnus Henrekson IFN: Government Size and Growth: A Survey and Interpretation of the Evidence, which "found that as government size increases, GDP growth declines".

Sweden's inability to integrate immigrants is pre-occupying the Swedish public and policymakers, writes AFP in an article published in a number of media. Andreas Bregh, IFN and Lund University is being interviewed saying that " what we previously thought was a good thing about Sweden, eliminating simple jobs, is now our biggest challenge when people from other countries arrive".

In a short text Pakistan Dawn writes about research by Andreas Bergh and Therese Nilsson, IFN. The researchers have established that as the number of poor people in a country rises, the market for inexpensive products expands and the purchasing power of the poor increases.

There is evidence that companies are avoiding going public ... Currently, 5,303 companies are listed on United States stock exchanges, down 35 percent from 20 years ago, writes New York Times quoting research by Alexander Ljungqvist, NYU and affiliated to IFN. Their finding is that “private firms invest substantially more than public ones on average, holding firm size, industry and investment opportunities constant.”

Research by a group of researchers including Alexande Ljungqvist, NYU and affiliated to IFN, indicates that corporate executives may believe that being public is a hindrance. Alexander Ljungqvist is interviwed on the NYU campus, answering questions about their innovative, and perhaps unsettling, work.

"The rise in rent prices is now being directly linked to Alan Kelly's attempts to bring in rent controls" the Irish Independent states. The paper notes that "the story is the same wherever rent controls have been tried. Swedish economist Assar Lindbeck [IFN] has said that rent control is "the most effective technique presently known to destroy a city, except for bombing".

"Sweden’s generous refugee policy is proving costly" the Herald Democrat writes. Lars Calmfors, IFN, is quoted saying it looks like the government is trying to circumvent rules by this year paying out an extra 10 billion kronor in refugee aid to municipalities. But most of that money probably will only be used next year. “This is very problematic, it seems like the government is trying to manipulate the ceiling in order to avoid breaking it,” Calmfors says.

Peter J. Loewen, University of Toronto, Arthur Lupia, University of Michigan and Daniel Rubenson, Ryerson University (and affiliated to IFN) argue in Washington-Post's blog The Monkey Cage that the problem in recent elections in Canada and the UK was that the media misread the polls and misled their audiences. They claim that "the same could be happening in the United States right now regarding the presidential campaign and, in particular, the candidacy of Donald J. Trump".

The Local has translated an article by Mårten Blix (guest researcher at IFN) that was published i Dagens Nyheter 2015-10-12. Blix outlines "how to make sure jobs are not lost when digitalization grows in tech-savvy Sweden and robots take over skilled labour".

Lines and long waits make canadian voters head home without casting a ballot at advance polling stations. Daniel Rubenson, Ryerson University and affiliated to IFN, said "high voter turnout at advance polls isn't usually a harbinger of what will happen on Election Day".

Voter surveys also show the Tories have become the leading choice for immigrants, Peter Loewen and Daniel Rubenson (affiliated to IFN) write. They asked  respondents about the niqab and found that "among those citizens born outside the country, 70 per cent agree with forcing women to reveal their faces".

"Labour's Shadow Chancellor laid bare in Brighton his radical agenda for the nation's economy" The Telegraph writes about John McDonnell. The criticism applies to, among other things, the property market: "Swedish economist Assar Lindbeck [IFN] infamously said that rent controls were 'the most effective technique presently known to destroy a city – except for bombing'."

"What really happens when there is rent control is that we replace rationing by price with rationing by queuing" writes Tom Worstall in Forbes. He is quoting Assar Lindbeck, IFN and Stockholm University, saying that “In many cases rent control appears to be the most efficient technique presently known to destroy a city—except for bombing.”

Business Insider states that "... there are actually a lot of good reasons to have a monarchy". The magazine writes: "Andreas Bergh [IFN] and Christian Bjørnskov [affiliated to IFN] find that social trust is higher in monarchies. Social trust is an important factor in sociology and economics, and generally correlates with lower crime and lower corruption, among other things."

The Washington Post is wondering why some European countries welcome refugees, while others do everything they can to keep them out. The answer given by the author of the article is: demographics. Writing about Sweden WP quotes IFN and Tino Sanandaji who used to work at the institute."'There just aren't many jobs anymore for the very low-skilled.'

Dow Jones Newswire has published a piece about research by Roger Svensson, IFN, and Andreas Westermark, the Riksbank. Dow Jones writes that as the European Central Bank is struggling to get inflation going, "maybe it is time the ECB tried something a little bit more radical, something from the playbook of authorities from the Middle Ages: recoinage".

Seeking Alpha states that "Wall Street is going wild wondering what the Fed will do in September. Will they raise rates for the first time since 2006? I certainly hope not". The newsletter refers to research by Andreas Bergh and Magnus Henrekson, IFN: "Government Size and Growth: A Survey and Interpretation of the Evidence," determined that as government size increases, GDP growth declines."

"Manufacturing has been and continues to be the backbone of economic productivity in the United States" writes BizWest, Colorado. The author of the article quotes an IFN-study: On average, one new manufacturing job produces 1.6 additional jobs in local service businesses.

A recently published report about the faltering Swedish school results, authored by Gabriel Heller Sahlgren, is the subject of this blog post by the same author. He asserts that "about a third of Sweden’s average fall in Pisa disappears when we adjust the sample to take into account altered pupil demographics due to immigration." Due to comments to his report in Swedish media Heller Sahlgren concludes: "So next time you read an article about declining Swedish scores and there’s no mention of immigration, you know the journalist isn’t doing his or her job properly – or is pursuing an ideological agenda. Or both."

The Detroit News is writing about Hillary Clinton's speech about "quarterly capitalism" and an article in The National Review. The paper refers to research by Alexander Ljungqvist, NUY and affiliated to IFN.