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Working Paper No. 1356
A Stranger Thing? Sweden – The Upside Down of Multilevel Trust
There are good reasons to expect that citizens will appreciate local government more than central government. Sure enough, previous studies have found support for this assumption. Nevertheless, I will…
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Working Paper No. 1355
The Importance of Business Travel for Trade: Evidence from the Liberalization of the Soviet Airspace
The strong negative relationship between geographical distance and trade is not well understood. I use the liberalization of the Soviet airspace to estimate the causal impact of business tra…
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Working Paper No. 1354
Globalization, Recruitments, and Job Mobility
Previous research indicates that firms pay a premium to poach workers from exporting firms if experience working for an internationally engaged firm reduces trade costs. Since international experience…
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Working Paper No. 1353
What Happens when Municipalities Run Corporations? Empirical Evidence from 290 Swedish Municipalities
Across the globe, local governments have increasingly begun to rely on municipally owned corporations (MOCs) to provide public services, mounting to what scholars describe as a burgeoning corporatizat…
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Working Paper No. 1352
Mysteries of the Trade? Skill-Specific Local Agglomeration Economies
Using longitudinal Swedish data, we document robust evidence of highly local spillovers between individuals in similar occupations. The results are consistent with the existence of knowledge spillover…
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Working Paper No. 1351
Competition for Flexible Distribution Resources in a ’Smart’ Electricity Distribution Network
In a ’smart’ electricity distribution network, flexible distribution resources (FDRs) can be coordinated to improve efficiency. But coordination enables whoever controls such resources to exercise mar…
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Working Paper No. 1350
Misogynistic and Xenophobic Hate Language Online: A Matter of Anonymity
In this paper, we quantify hateful content in online civic discussions of politics and estimate the causal link between hateful content and writer anonymity. To measure hate, we first develop a superv…
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Working Paper No. 1349
The Scientific Output of a Database on Commercialized Patents
The purpose of this study is to present a unique database on commercialized patents and to illustrate how it can be used to analyze the commercialization process of patents. The dataset is based on a…
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Working Paper No. 1348
Gender and Labour Market Adjustment to Trade: The Case of India
Standing at 24% in 2018, India’s female labour force participation is only half of the global average (48%). At the same time, India has one of the widest gender wage gaps in the world and women are l…
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Working Paper No. 1347
Software Development and Innovation ‒ Exploring the Software Shift in Innovation in Swedish Firms
Several scholars as well as industry professionals have claimed that there is a “software-biased shift” in the nature and direction of innovation in that software development is a core part of innovat…
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Working Paper No. 1346
The Effect of Water Filtration on Cholera Mortality
There is debate among researchers regarding the importance of water filtration in reducing mortality during the epidemiological transition. However, there is limited research on how water filtration a…
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Working Paper No. 1345
Innovative Entrepreneurship as a Collaborative Effort: An Institutional Framework
We demonstrate how successful entrepreneurship depends on a collaborative innovation bloc (CIB), a system of innovation that evolves spontaneously and within which activity takes place through time. A…
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Working Paper No. 1344
Does Precise Case Information Limit Precautionary Behavior? Evidence from COVID-19 in Singapore
Limiting the spread of contagious diseases can involve both government-managed and voluntary efforts. Governments have a number of policy options beyond direct intervention that can shape individuals’…
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Working Paper No. 1343
International Trade and Labor Market Integration of Immigrants
We examine if international trade improves labor market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labor market. However, trading with a foreign…
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Working Paper No. 1342
Testing Axioms of Revealed Preference in Stata
The revealed preference approach in economics is central to the empirical analysis of consumer behavior. This paper introduces the Stata commands checkax, aei, and powerps as a bundle within the packa…
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Working Paper No. 1341
The Importance of Tacit Knowledge: Dynamic Inventor Activity in the Commercialization Phase
Inventors generally know more about their inventions than what is written down in patent applications. Because they possess this tacit knowledge, inventors may need to play an active role when patents…
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Working Paper No. 1340
The Individual Welfare Costs of Stay-at-Home Policies
This paper reports the results of a choice experiment designed to estimate the private welfare costs of stay-at-home policies during the COVID-19 pandemic. The study is conducted on a large and repres…
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Working Paper No. 1339
Aggregate Consumption and Wealth in the Long Run: The Impact of Financial Liberalization
This paper investigates the impact of financial liberalization on the relationship between consumption and total wealth (i.e., the sum of asset wealth and human wealth). We propose a heterogeneous age…
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Working Paper No. 1338
The Fatal Conceit: Swedish Education after Nazism
In the aftermath of the Second World War, Sweden dismantled an education system that was strongly influenced by German, Neo-Humanist pedagogical principles in favor of a progressive, student-centered…
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Working Paper No. 1337
Chinese Aid to Africa: Distinguishing Features and Local Effects
Drawing on our recent work on local effects of Chinese development projects in Africa, this review article highlights a number of distinguishing features of Chinese aid, and discusses how these may tr…
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Working Paper No. 1336
Chinese Aid and Local Ethnic Identification
Recent empirical evidence suggests that Chinese development finance may be particularly prone to elite capture and patronage spending. If aid ends up in the pockets of political elites and their ethno…
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Working Paper No. 1335
What Determines the Capital Share over the Long Run of History?
This paper analyzes the determinants of the labor-capital split in national income for 20 countries since the late 1800s. Our main identification strategy focuses on unique historical quasi-experiment…
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Working Paper No. 1334
Political Failure: A Missing Piece in Innovation Policy Analysis
Within the field of innovation studies, researchers have identified systematic failures that hamper investment in R&D, innovation, and growth. Accordingly, researchers in this field often seek to…
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Working Paper No. 1333
The Ability Gradient in Bunching
We analyze the relationship between cognitive ability and bunching in the context of a large and salient kink point of the Swedish income tax schedule. Using population-wide register data from the Swe…
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Working Paper No. 1332
Gender and Climate Action
It is well-known that men and women differ in their views regarding the severity of climate change, but do they also differ in their support for climate policy and in undertaking climate action in the…
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Working Paper No. 1331
Economic Freedom and the CO<sub>2</sub> Kuznets Curve
Politicians and international organisations advocate for increased regulation and government control of industry in order to handle climate change and reduce overall greenhouse gas emissions. However,…
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Working Paper No. 1330
Do Swedish Schools Discriminate against Children with Disabilities?
We present results from a field experiment in which fictitious parents to children with certain types of disabilities, attention deficit hyperactivity disorder (ADHD) and type 1 diabetes mellitus (T1D…
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Working Paper No. 1329
Minimum Wages and Firm-Level Employment in a Developing Country
The effect of minimum wages on employment is a matter of debate, and the existing empirical literature contains mixed results. One reason for this is the methodological difficulties involved where cha…
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Working Paper No. 1328
On the Curvature of Homogeneous Function
Consider a quasiconcave, upper semicontinuous and homogeneous of degree $\gamma$ function $f$. This paper shows that the reciprocal of the degree of homogeneity, $1/\gamma$, can be interpreted as a me…
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Working Paper No. 1327
Testing for Weak Separability and Utility Maximization with Incomplete Adjustment
We develop models for weakly separable utility maximization with incomplete adjustment. By allowing for incomplete adjustment, these models account for the decision maker’s inability to instantaneousl…
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Working Paper No. 1326
CEO Health
Using comprehensive data on 28 cohorts in Sweden, we analyze CEO health and its determinants and outcomes. We find CEOs are in much better health than the population and on par with other high-skill p…
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Working Paper No. 1325
Price Dynamics of Swedish Pharmaceuticals
This paper investigates price patterns of off-patent pharmaceuticals in Sweden. I show that price dynamics are dependent on the number of competitors in the market. The price patterns follow predictio…
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Working Paper No. 1324
Income Elasticities Without Parameters
This paper proposes a simple non-parametric framework to calculate income elasticities from a data set of observed prices and consumed quantities without having to estimate any parameters. The framewo…
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Working Paper No. 1323
Does Local Government Corruption Inhibit Entrepreneurship?
The dominant ‘sand in the wheels’-view holds that entrepreneurship is strongly inhibited by corruption. Challenging this, the ‘grease the wheels’-view maintains that corruption might increase entrepre…
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Working Paper No. 1322
When Less Is More: Why Limited Entrepreneurship Education May Result in Better Entrepreneurial Outcomes
Entrepreneurship research suggests that entrepreneurship education and training can bridge the gender gap in entrepreneurship, but little empirical research exists assessing the validity and impact of…
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Working Paper No. 1321
A Rationalization of the Weak Axiom of Revealed Preference
We offer a rationalization of the weak axiom of revealed preference (WARP) and of the weak generalized axiom of revealed preference (WGARP) for both finite and infinite data sets of consumer choice. W…
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Working Paper No. 1320
Does a District-Vote Matter for the Behavior of Politicians? A Textual Analysis of Parliamentary Speeches
In most democracies, members of parliament are either elected over a party list or by a district. We use a discontinuity in the German parliamentary system to investigate the causal effect of a distri…
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Working Paper No. 1319
Making a Market: Infrastructure, Integration and the Rise of Innovation
We exploit exogenous variation arising from the historical rollout of the Swedish railroad network across municipalities to identify the impacts of lowered interaction costs on innovative activity. A…
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Working Paper No. 1318
‘Two Gentlemen Sharing’: Rental Discrimination of Same-Sex Couples in Portugal
We measure and analyze discriminatory behavior against same-sex couples trying to rent an apartment in Portugal. This is the first correspondence field experiment investigating discrimination against…
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Working Paper No. 1317
Switching Costs, Brand Premia and Behavioral Pricing in the Pharmaceutical Market
This article examines the market power of branded prescription drugs faced with generic competition. Using prescription-level and matched socioeconomic panel data of the entire Swedish population betw…
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Working Paper No. 1316
Money for Nothin’ – Digitalization and Fluid Tax Bases
Digitaliseringen innebär att vi konsumerar och producerar varor och tjänster på nya sätt, men skattesystemet har inte följt utvecklingen. Flera länder redan har infört en digital skatt och därmed ökat…
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Working Paper No. 1315
The Causal Effect of Political Power on the Provision of Public Education: Evidence from a Weighted Voting System
In this paper, we estimate the causal effect of political power on the provision of public education. We use data from a historical nondemocratic society with a weighted voting system where eligible v…
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Working Paper No. 1314
International Jurisdiction over Standard-Essential Patents
Countries are alleged to pursue commercial interests through their antitrust interventions regarding FRAND commitments for standard-essential patents (SEPs). This paper examines pros and cons of alloc…
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Working Paper No. 1313
Entrepreneurship Prompts Institutional Change in Developing Economies
Entrepreneurship plays a pivotal role for institutional change and economic development in transition and developing economies. Formal and informal institutions in such countries are often sub-par, bu…
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Working Paper No. 1312
From Gutenberg to Google: The Internet Is Adopted Earlier if Ancestors Had Advanced Information Technology in 1500 AD
Individuals with ancestry from countries with advanced information technology in 1500 AD, such as movable type and paper, adopt the internet faster than those with less advanced ancestry.
The analysis…
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Working Paper No. 1311
Corruption, Judicial Accountability and Inequality: Unfair Procedures May Benefit the Worst-Off
We ask whether, as many seem to think, corruption worsens, and judicial accountability improves, inequality, and investigate this empirically using data from 145 countries 1960–2014. We relate perceiv…
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Working Paper No. 1309
Power Against Random Expenditure Allocation for Revealed Preference Tests
This paper proposes new power indices for revealed preference tests. The indices are based on a model of irrational consumption behavior where the consumer randomly allocates a certain fraction of exp…
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Working Paper No. 1310
Locational Marginal Network Tariffs for Intermittent Renewable Generation
The variability of solar and wind generation increases transmission network operating costs associated with maintaining system stability. These ancillary services costs are likely to increase as a sha…
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Working Paper No. 1308
Index Numbers and Revealed Preference Rankings
For previously identified weakly separable blockings of goods and assets, we construct aggregates using four superlative index numbers, the Fisher, Sato-Vartia, Törnqvist and Walsh, two non-superlativ…
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Working Paper No. 1307
Does Job Search Assistance Reduce Unemployment? Experimental Evidence on Displacement Effects and Mechanisms
This paper uses a large-scale two-level randomized experiment to study direct and displacement effects of job search assistance. Our findings show that the assistance reduces unemployment among the tr…
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Working Paper No. 1306
Collaborative Innovation Blocs and Antifragility
We present the theory of the collaborative innovation bloc (CIB), an evolving system of innovation within which activity takes place over time. We show how the application of the CIB perspective can h…
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Working Paper No. 1305
Distance Still Matters: Local Bank Closures and Credit Availability
In recent years, commercial banks have substantially reduced the number of their branch offices. We address the question of whether or not the increased distance to lenders caused by branch office clo…
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Working Paper No. 1304
Globalization and Populism in Europe
Recent micro-level studies have suggested that globalization - in particular, economic globalization and trade with China - breeds political polarization and populism. This study examines whether or n…
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Working Paper No. 1303
Assimilation Patterns in Cities
We develop a model in which ethnic minorities can either assimilate to the majority's norm or reject it by trading off higher productivity and wages with a greater social distance to their culture of…
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Working Paper No. 1302
Social Norms in Networks
Although the linear-in-means model is the workhorse model in empirical work on peer effects, its theoretical properties are understudied. In this study, we develop a social-norm model that provides a…
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Working Paper No. 1301
The Economics of Change and Stability in Social Trust: Evidence from (and for) Catalan Secession
Consequences of social trust are comparatively well studied, while its societal determinants are often subject to debate. This paper studies both in the context of Catalan attempts to secede from Spai…
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Working Paper No. 1300
Education and Health: Long-Run Effects of Peers, Tracking and Years
We investigate two parallel school reforms in Sweden to assess the long-run health effects of education. One reform only increased years of schooling, while the other increased years of schooling but…
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Working Paper No. 1299
Digitization-Based Automation and Occupational Dynamics
We examine the relationship between occupational automation probabilities and employment dynamics over nearly two decades. We show that employment and wage shares of occupations with a higher automati…
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Working Paper No. 1297
State Trading Deregulation and Prairie Durum Wheat Production
We estimate the impact of the 2012 removal of the Canadian Wheat Board’s (CWB) single-desk on the spatial pattern of durum wheat acres in Western Canada. We analyze changes in durum seeded acres with…
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Working Paper No. 1296
Import Demand Elasticities Based on Quantity Data: Theory and Evidence
Correct estimates of import demand elasticities are essential for measuring the gains from trade and predicting the impact of trade policies. We show that estimates of import demand elasticities hinge…
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Working Paper No. 1295
Mothers, Peers and Gender-Role Identity
We study whether a woman's labor supply as a young adult is shaped by the work behavior of her adolescent peers' mothers. Using detailed information on a sample of U.S. teenagers who are followed over…
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Working Paper No. 1294
Friendship Networks and Political Opinions: A Natural Experiment among Future French Politicians
We study how friendship shapes students' political opinions in a natural experiment. We use the indicator whether two students were exogenously assigned to a short-term \integration group", unrelated…
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Working Paper No. 1293
Are Estimates of Early Education Programs Too Pessimistic? Evidence from a Large-Scale Field Experiment that Causally Measures Neighbor Effects
We estimate the direct and spillover effects of a large-scale early childhood intervention on the educational attainment of over 2,000 disadvantaged children in the United States. We show that failing…
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Working Paper No. 1291
A Theory of Gazelle Growth: Competition, Venture Capital Finance and Policy
This paper proposes a theory of gazelle growth in which gazelles can either grow organically or by acquisitions. In the model, there are three types of firms: incumbent, target, and gazelle. We show t…
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Working Paper No. 1292
Capacity Mechanisms and the Technology Mix in Competitive Electricity Markets
Capacity mechanisms are increasingly used in electricity market design around the world yet their role remains hotly debated. In this paper, we introduce a new benchmark model of a capacity mechanism…
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Working Paper No. 1298
Should We Worry about the Decline of the Public Corporation? A Brief Survey of the Economics and External Effects of the Stock Market
In recent years, the number of listed companies has been declining in many countries across the world. This paper provides a selective survey of the literature on the real economic effects of the stoc…
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Working Paper No. 1290
Local Rates of New Firm Formation: An Empirical Exploration Using Swedish Data
We assess the empirical literature on the determinants of spatial variations in new-firm formation rates by undertaking a systematic empirical analysis of the relative roles of different demand- and s…
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Working Paper No. 1289
Multiple Births, Birth Quality and Maternal Labor Supply: Analysis of IVF Reform in Sweden
In this study we examine the passage of a reform to in-vitro fertilization (IVF) procedures in Sweden in 2003. Following publication of medical evidence showing that pregnancy success rates could be m…
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Working Paper No. 1288
The Impact of Banning Mobile Phones in Swedish Secondary Schools
Recently, policy makers worldwide have suggested and passed legislation to ban mobile phone use in schools. The influential (and only quantitative) evaluation by Beland and Murphy (2016), suggests tha…
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Working Paper No. 1284
When Dad Can Stay Home: Fathers’ Workplace Flexibility and Maternal Health
While workplace flexibility is perceived to be a key determinant of maternal labor supply, less is known about fathers’demand for flexibility or about intra-household spillover effects of flexibility init…
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Working Paper No. 1287
Retail and Place Attractiveness: The Effects of Big-Box Entry on Property Values
Opponents of big-box entry argue that large retail establishments generate noise and other types of pollution and a variety of negative externalities associated with traffic. Big-box advocates, on the…
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Working Paper No. 1286
Can Social Spending Cushion the Inequality Effect of Globalization?
This paper examines whether social spending cushions the effect of globalization on within-country inequality. Using information on disposable and market income inequality and data on overall social s…
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Working Paper No. 1285
The Collaborative Innovation Bloc: A Reply to our Commentators
We are grateful for the comments to our article, and for the opportunity to respond to them. In our original contribution, we argued that the application of the EOE perspective could help make Austria…
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Working Paper No. 1283
Economic Incentives, Childcare and Gender Identity Norms
This paper investigates the role of gender identity norms in shaping men's and women's time allocation, based on observed behavior following a change in the market penalty for adopting prescriptive no…
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Working Paper No. 1282
Roots of Tolerance among Second-Generation Immigrants
Tolerance – respecting individual choice and differences among people – is a prominent feature of modern European culture. That immigrants embrace this kind of liberal value is arguably important for…
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Working Paper No. 1281
Coups, Regime Transitions, and Institutional Change
Coups and regime transitions are events that typically are intended to change the basic institutional framework of a country. Which specific policies change and the consequences of these changes never…
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Working Paper No. 1280
Intrapreneurship and Trust
Trust and entrepreneurship are seen as key ingredients of long-term prosperity. However, it is not clear how these two are related. Part of the confusion can be traced back to the measurement of entre…
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Working Paper No. 1279
The Rise and Decline of Industrial Foundations as Controlling Owners of Swedish Listed Firms: The Role of Tax Incentives
Beginning in the interwar period, industrial foundations became a vehicle for the corporate control of large listed firms in Sweden, but in the 1990s they were replaced by wealthy individuals who eith…
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Working Paper No. 1278
Redispatch in Zonal Pricing Electricity Markets
Zonal pricing electricity markets operate sequentially. First, the suppliers compete in a spot market. Second, to alleviate the congestion in the transmission line, in a redispatch market, the supplie…
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Working Paper No. 1277
A Meritocratic Origin of Egalitarian Behavior
The meritocratic fairness ideal implies that inequalities in earnings are regarded as fair only when they reflect differences in performance. Consequently, implementation of the meritocratic fairness…
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Working Paper No. 1272
Foreign Investors and Domestic Company Growth: Evidence from US Venture Capital Investments in Sweden
Do foreign venture capitalists help the domestic economy, or hamper it by slowing down growth, potentially moving economic activity away? This paper addresses this long-standing policy question by exa…
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Working Paper No. 1276
Does Economic Freedom Boost Growth for Everyone?
While the association between economic freedom and long-run economic growth is well documented, the parallel research literature on the distributional consequences of economic freedom is full of confl…
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Working Paper No. 1275
Gender Differences in Optimism
This paper examines gender differences in optimism about the economy. We measure optimism using Swedish survey data in which respondents stated their beliefs about the country’s future economic situat…
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Working Paper No. 1274
Samuelson's Approach to Revealed Preference Theory: Some Recent Advances
Since Paul Samuelson introduced the theory of revealed preference, it has become one of the most important concepts in economics. This chapter surveys some recent contributions in the revealed prefere…
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Working Paper No. 1273
The Compensation Hypothesis Revisited and Reversed
This note describes how research on the link between globalization and openness has changed over time. Early contributions assumed that countries develop welfare states to compensate for volatility ca…
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Working Paper No. 1271
Ethnic Discrimination in Contacts with Public Authorities: A Correspondence Test Among Swedish Municipalities
We present a field experiment conducted in order to explore the existence of ethnic discrimination in contact with public authorities. Two fictitious parents, one with a Swedish-sounding name and one…
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Working Paper No. 1270
Measuring Entrepreneurship: Do Established Metrics Capture High-Impact Schumpeterian Entrepreneurship?
Are quantitative measures driven by small business activity also valid proxies for high-impact Schumpeterian entrepreneurship? We compile four hand-collected measures of high-impact Schumpeterian entr…
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Working Paper No. 1269
Securing Personal Freedom through Institutions – the Role of Electoral Democracy and Judicial Independence
Personal freedom is highly valued by many and a central element of liberal political philosophy. Although personal freedom is frequently associated with electoral democracy, developments in countries…
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Working Paper No. 1268
Globalization, Job Tasks and the Demand for Different Occupations
Globalization has increased in recent decades, resulting in structural changes of production and labor demand. This paper examines how the increased global engagement of firms affects the structure of…
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Working Paper No. 1267
Stock Market Impact of Cross-Border Acquisitions in Emerging Markets
Entry by multinational enterprises (MNEs) into emerging markets has increased substantially over the last decades. Many of these MNE entries have taken place in concentrated markets. To capture these…
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Working Paper No. 1266
Political Hedgehogs: The Geographical Sorting of Refugees in Sweden
This study shows that in Sweden, contrary to other European countries, refugees have been disproportionately placed in peripheral and rural areas with high unemployment and rapid native depopulation w…
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Working Paper No. 1265
The Refugee Crisis and the Reinvigoration of the Nation State: Does the European Union Have a Common Asylum Policy?
The European Union officially proclaims to have a common asylum policy. However, the common treaties leave a great deal of discretion to the individual member countries, which allow them to regulate r…
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Working Paper No. 1264
Production Efficiency of Nodal and Zonal Pricing in Imperfectly Competitive Electricity Markets
Electricity markets employ different congestion management methods to handle the limited transmission capacity of the power system. This paper compares production efficiency and other aspects of nodal…
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Working Paper No. 1263
Gender Grading Bias in Junior High School Mathematics
Admission to high school in Sweden is based on the final grades from junior high. This paper compares students’ final mathematics grade with new data from a high school introductory test score in math…
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Working Paper No. 1262
The Housing Wealth Effect: Quasi-Experimental Evidence
Empirical studies have estimated a big range of consumption response sizes to changes in house prices. Using a quasi-experiment, we estimate a shock of −19.4 percent to house prices in the area surrou…
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Working Paper No. 1261
Financial Reforms and Low-Income Households’ Impact on International Consumption Risk Sharing
Complete financial markets allow countries to share their consumption risks internationally, thereby creating welfare gains through lower volatility of aggregate consumption. Using a panel of 116 coun…
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Working Paper No. 1260
Salience of Inherited Wealth and the Support for Inheritance Taxation
We study how attitudes to inheritance taxation are influenced by information about the role of inherited wealth in society. Using a randomized experiment in a register-linked Swedish survey, we find t…
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Working Paper No. 1259
Optimal vs Satisfactory Transparency: The Impact of Global Macroeconomic Fluctuations on Corporate Competitiveness
Being able to separate temporary global macroeconomic influences – caused by fluctuations in exchange rates, interest rates and inflation – from intrinsic performance – related to a superior product,…
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Working Paper No. 1258
Practice Makes Voters? Effects of Student Mock Elections on Turnout
Student mock elections are carried out in schools around the world in an effort to increase political interest and efficacy among students. There is, however, a lack of research on whether mock electi…
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Working Paper No. 1257
Central- versus Self-Dispatch in Electricity Markets
In centralized markets, producers submit detailed cost data to the day-ahead market, and the market operator decides how much should be produced in each plant. This differs from decentralized markets…
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