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Working Paper No. 1547
Tax Incentives, Minimum Capital Requirements, and the Incorporation Decision
What leads self-employed entrepreneurs to incorporate? I examine how tax incentives interact with the cost of incorporation to answer this question. I exploit the abolition of minimum capital requirem…
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Journal of Rural Studies
Conditions for Doing Business in Rural Areas: Survey Evidence from In-Movers and Stayers
Our use of longitudinal register data combined with a unique survey allows us to offer a more comprehensive picture of rural self-employment than in previous studies. We find that self[1]employed in r…
Journal Article
Working Paper No. 1546
HYBRIT: A Hubristic Hydrogen-Based Steel Project
This study critically examines HYBRIT (Hydrogen Breakthrough Ironmaking Technology), a Swedish flagship project—led by the government-owned iron ore company LKAB—to produce fossil-free sponge iron usi…
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Journal of Monetary Economics
The Housing Wealth Effect: Quasi-Experimental Evidence
We exploit a quasi-experiment to provide new evidence on the magnitude of the housing wealth effect. We estimate an immediate shock of approximately ‒15% to house prices close to one of Stockholm's ai…
Journal Article
Working Paper No. 1545
How Early Career Choices Adjust to Economic Crises
We study how students adjust their early career choices in response to economic crises and how these decisions affect their long-run labor market outcomes. Focusing on Sweden’s deep recession in the e…
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Economic Affairs
Why Is Competition in the European Football Market Failing, and What Should Be Done About It?
The European football (soccer) market increasingly funnels rents to superstar players and intermediaries while weakening competitive balance. We trace this dynamic to two forces: (a) technological inn…
Journal Article
Carbon Taxation, Firm Performance and Labor Demand
This paper investigates the environmental and economic effects of carbon taxation, including the impacts on labor demand for different workers. Using matched employer- employee data from the Swed…
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Encyclopedia of Public Choice
Beauty in Politics
The looks of political candidates can influence voter behavior, often serving as a shortcut for those lacking detailed information. Attractive candidates are often viewed as more competent and may gai…
Book Chapter
Working Paper No. 1544
Understanding Immigrant Self-Employment in Sweden: Insights from the Literature
We present results from research on different dimensions of immigrant self-employment in Sweden. There are variations in self-employment rates between different groups of immigrants and the native pop…
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Working Paper No. 1543
Must Capital Income Increase Long-Term Inequality? Evidence from Sweden 1991–2021
Capital income is known to increase income inequality when measured on an annual basis, but the role of personal capital income in long-run inequality is rarely studied. Theoretically, capital income…
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Bruegel
Europe’s Electricity Capacity Mechanisms Need to Be Better Coordinated
This paper analyses EU capacity mechanisms, their cost and security impacts, and the pros and challenges of deeper regional coordination
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Working Paper No. 1542
In Pursuit of the Green Transition—Electricity at Any Cost?
We examine EU and UK plans for achieving a fossil-free energy system by 2050, centered on massive electrification and large-scale deployment of wind and solar power. Using empirical trends, cost analy…
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Research Handbook on Austrian Economics in Management and Entrepreneurship
Quasi–Markets: A Promising Area for Austrian Economic Research
To unleash entrepreneurship and innovation in welfare service provision, many countries have established quasi-markets. We argue that Austrian scholars should bring their analytical focus to such mark…
Book Chapter
Public Finance Review
Government Intervention and Long–Run Growth: An Ideologically Moderated Association?
Government interventions can vary in ideological ways not fully captured by standard measures of economic freedom. This paper shows that growth effects of specific areas of the economic freedom index…
Journal Article
Working Paper No. 1541
Does Competition from For-Profit Firms Raise Wages for Preschool Workers?
We study the wage effects of an expansion of for-profit preschools in Sweden, which followed after a reform in 2006 removed municipalities’ right to veto private entry. The expansion decreased prescho…
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Working Paper No. 1540
Income and Employment for Immigrants and Immigrant-Dense Neighbourhoods in Sweden 1998–2022
This paper examines income and employment outcomes for immigrants in Sweden’s most immigrant-dense neighbourhoods between 1998 and 2022. While relative employment among immigrants has improved, relati…
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European Economic Review
The Working Capital Channel
Firms relying on working capital raise prices following monetary tightening, and this paper demonstrates that the working capital channel plays a key role in partial and general equilibrium inflation…
Journal Article
Working Paper No. 1539
Tax-Motivated Firm Splitting
How do corporate tax systems shape the boundaries of the firm? This paper shows that nonlinear corporate income taxation can distort firms’ organizational structures by inducing tax-motivated firm spl…
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Employment, Externalities, and Exploitation: Empirical Essays on Maritime Sectors and Renewable Resource Management
This thesis addresses empirically understudied and politically significant issues. Specifically, it examines the blue economy and renewable energy, both of which are central to the European Union’s ec…
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Working Paper No. 1538
Ability, Not Heritage: Why Expanding University Access Often Fails to Narrow Intergenerational Educational Gaps
Many countries have established new local colleges to increase access to education for disadvantaged populations. However, many of these expansions have not reduced educational inequality. Drawing on…
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Handbook on Economic Populism: A Political Economy Perspective of Populism’s Approach to Economics, Business, and Finance
Book Chapter
European Review of Economic History
Historical Monetary Strategies: Achieving Long–Term Price Stability in Medieval Sweden
This paper examines how medieval Swedish minting authorities (1277–1540) appear to have maintained relative price stability despite repeated debasement and silver shortages. Written sources are scarce…
Journal Article
Proceedings of the XVI International Numismatic Congress, Vol. III: Medieval Numismatics
Income Sources and Effects of Medieval Emergency Debasements
The paper is about how minting authorities in the Middle Ages could increase seigniorage by undertaking relatively fast debasements (decreasing the silver content) of the coinage. The paper analyses w…
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VoxEU
Reforming the Education of Economists in Europe: Breaking the Tyranny of the Top Five
Many European countries have adopted the American model of doctoral training and academic evaluation. While this model suits America’s vast, mobile labour market, in Europe it has created perverse inc…
Popular Science
Proceedings of the XVI International Numismatic Congress, Vol. III: Medieval Numismatics
When Small Change was not a Big Problem
Abstract In a proportional coinage system with several denominations, there is a risk of shortage of small change. The main reason is the higher production costs of small coins. This was a major probl…
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Working Paper No. 1534
Pre-AI Sorting, Post-AI Inequality: Generative AI and the Gender Wage Gap
We examine how gender-based occupational sorting before the release of ChatGPT relates to predicted exposure to generative AI and its potential implications for the gender wage gap. Using Swedish admi…
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Working Paper No. 1537
Multi-Product Supply Function Equilibria
We characterize Nash equilibria in multi-product markets in which producers commit to vectors of supply functions contingent on all prices. The framework accommodates (dis)economies of scope in produc…
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European Journal of Law and Economics
Covid and the Constitution: Unlawful States of Emergency During the Pandemic
The Covid-19 pandemic in 2020 and 2021 gave rise to an unprecedented number of emergency declarations across the world. Recent research shows that the transfer of substantial discretionary power to th…
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Working Paper No. 1536
Sentence Length and Recidivism: Court Rulings based on BAC
We study the effect of prison sentences on recidivism using a unique feature of sentencing for drunk driving in the Swedish court system. Below the blood alcohol concentration (BAC) of 1.0‰, individua…
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Public Choice
Review of "Foucault and Liberal Political Economy: Power, Knowledge and Freedom", by Mark Pennington
Popular Science
Working Paper No. 1535
A Simplified Klein–Spady Estimator for Binary Choice Models
One of the most cited studies within the field of binary choice models is that of Klein and Spady (1993), in which the authors propose an estimator that is not only non-parametric with respect to the…
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Scandinavian Journal of Public Administration
Stress–Testing a Quasi–Market: Unintended Consequences of the Swedish School Voucher System
Quasi-markets in the provision of public services are increasingly common but also highly contested. We formulate a conceptual framework based on economic theory to describe how quasi-markets differ f…
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Economic and Business Review
What Kind of Economists Do We Want? From a One–Track to a Two–Track Mind
We explore the challenges facing the current academic training of economists in small European countries such as Sweden. The monolithic focus on publishing in the top-ve journals, which prioritizes m…
Journal Article
Handbook on Economic Populism: A Political Economy Perspective of Populism’s Approach to Economics, Business, and Finance
Populism and Intolerance: An Overview of the Empirical Literature
An analysis of 35 empirical studies reveals mixed effects of populist politics on intolerance toward sminorities. While 24 studies show increased hostility, rigorous causal designs yield equivocal res…
Book Chapter
Small Business Economics
Neo–Schumpeterian Growth Theory: Missing Entrepreneurs Results in Incomplete Policy Advice
The neo-Schumpeterian growth models, which appeared in the early 1990s, have ostensibly reintroduced the entrepreneur into mainstream growth theory. However, we show that by ignoring genuine uncertain…
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Small Business Economics
Immigrant Self–Employment in Turbulent Times
We examine immigrant self-employment in Sweden during 2011–2021 – a turbulent decade with a large influx of refugees into the country and the outbreak of the global COVID-19 pandemic. Four outcome var…
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Working Paper No. 1533
Managerial Origin and Firms’ Demand for Labor Migrants: Evidence from Sweden
This paper examines how managerial background influences firms’ use of labor migration. Using Swedish data, we analyze whether firms led by foreign-born managers are more likely to apply for work perm…
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Terrorism and Political Violence
Do Blasphemy Restrictions Restrict Terrorism?
A majority of the world’s countries ban forms of blasphemous expressions, often arguing that such legislation is necessary to prevent conflicts and terrorism. We explore the association between types…
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Journal of Comparative Economics
Periods of Uncertainty Are Linked to Greater Acceptance of Minorities
Uncertainty affects people in various ways. It is frequently found to hinder investment and production in the economic sphere. In this study, we examine the empirical relationship between uncertainty…
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Working Paper No. 1532
Private Ownership and Pricing: Evidence from the Swedish District Heating Sector
I examine the pricing behavior of municipal and private firms in the unregulated Swedish district heating market, characterized by geographically bounded local monopoly networks. Conditional on exogen…
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Working Paper No. 1531
Local Corporate Taxation and Business Activity
We use a natural experiment and administrative data to study the effect of corporate tax cuts on business activity. For identification, we exploit the abolition of municipal corporate income taxation…
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Working Paper No. 1530
What Kind of Economists Do We Want? From a One-Track to a Two-Track Mind
We explore the challenges facing the current academic training of economists in small European countries like Sweden. The monolithic focus on publishing in the top-five journals, which prioritizes met…
Working Paper
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Working Paper No. 1529
Successful Entrepreneurs Come from the Top of the Earned Income Distribution
Identifying high growth startups ex-ante and fostering their success is an important policy challenge. Using Swedish registry data, we show that previous labor market earnings of entrepreneurs is a si…
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Energy Economics
Local Network Operators in an Integrated Electricity Market
One of the key objectives of the EU's energy policy is to integrate the national electricity markets across Europe. However, effective integration requires that the system operators controlling the tr…
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International Economic Review
Optimal Redistribution and Education Signaling
We develop a theory of optimal income and education taxation under asymmetric information between firms and workers. Our results show that a max–min optimal tax code can achieve predistribution by poo…
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Journal of Finance
What is the Cost of Privatization for Workers?
The privatization of state owned enterprises is on the agenda across the globe. Using Swedish data covering two decades, we show that productivity gains and headcount reductions are coupled with econo…
Journal Article
Empirical Economics
The Impact of Drought on Farm Economic Performance: Evidence from Sweden
We estimate the effect of drought on farm economic performance, examine the sensitivity of farms’ historical performance to drought conditions, and determine the effect of a future increase in drought…
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Small Business Economics
Shaping and Furthering Core Conversations in Entrepreneurship Research: Dean A. Shepherd Recipient of the 2025 Global Award for Entrepreneurship Research
For almost three decades, Professor Dean A. Shepherd has had a profound impact on scholarly developments within the international community of entrepreneurship researchers. His extraordinarily broad a…
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Journal of Law and Economics
The Rule of Law Predicts Trust in Journalists
A strong rule of law correlates positively with trust in journalists, as robust legal institutions punish deceit and fraud effectively. The study identifies quality legal institutions as crucial for c…
Journal Article
Working Paper No. 1528
Accounting Research in the Age of AI
Recent developments in artificial intelligence raise fundamental questions about the future of academic accounting research. By integrating core microeconomic principles, a wide range of theoretical p…
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Journal of Housing Economics
Living in the Gender Spectrum: Evidence from Non–Cisgender Applications in the Rental Housing Market
We present novel evidence from the first correspondence study investigating the effect of individual non-cisgender signals in the housing market. In a preregistered trial, 800 fictitious letters were…
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VoxEU
Why the US and the WTO should part ways
The US embrace of power politics in the trade arena violates both the letter and spirit of the WTO’s General Agreement on Tariffs and Trade, undermining the integrity of the multilateral trading syste…
Popular Science
Kyklos
Trust and Income Among Immigrants in Europe
Using ESS data for 2002–22, we show that social trust boosts immigrant household income in Europe. For first-generation immigrants, inherited country-of-origin trust predicts income most strongly; for…
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Small Business Economics
Incentivizing Innovative Entrepreneurship in Quasi-Markets: Theory and Evidence from Sweden’s Schools and Nursing Homes
This article discusses welfare quasi-markets, a promising yet under-explored area of study in entrepreneurship research. Many countries have implemented quasi-markets to enhance entrepreneurship…
Journal Article
Economics Bulletin
Type 1 Diabetes and Youth Sports in Sweden: A Field Experiment on Discrimination
This study evaluated discrimination against children with Type 1 Diabetes Mellitus (T1DM) in Swedish sports clubs through a field experiment. Two fictitious fathers sent emails to 193 top-division clu…
Journal Article
Working Paper No. 1527
Nonparametric Tests for Perfect Competition: Theory and Application to the Nordic Wholesale Electricity Market
This paper develops a simple nonparametric test for perfect competition in markets for homogeneous goods. The method only requires data on prices and some aggregate of output. We then generalize the m…
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Essays on Policy and Market Imperfections in Electricity and Auction Markets
This thesis consists of three independent research papers. Using both applied econometric methods and theoretical models, they study the functioning of electricity markets, including those for green c…
Dissertation
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European Economic Review
Optimal Housing Taxation with Land Scarcity and Maintenance: A Mirrleesian Perspective
We study optimal housing taxation in a Mirrleesian framework where individuals differ in both labor productivity and land ownership. Housing services are produced by combining scarce land with structu…
Journal Article
The Market: Money, States and Ideas for a Free World
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Public Choice
Coups and Constitutional Change
Newly developed data show that after successful coups, there is a 42 percent chance that a new constitution is implemented. We explore these constitutions, and that military coup plotters tend to draw…
Journal Article
Journal of Comparative Economics
The Growth Consequences of Socialism
The discussion of the growth consequences of socialism has fulminated for a century, sparked off by the Calculation Debate in the 1920s and 30s, and has concerned the performance of the Soviet Union i…
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Electricity at Any Price? The Real Cost of Wind Power
The Swedish electricity market is undergoing major changes. Expectations are being ex pressed from many quarters that demand for electricity will grow significantly in the coming decades. At the same…
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Nordic Economic Policy Review 2025
Comment on Harald Dale-Olsen: Technological Development, Market Power And (The Role of) Unions
Harald Dale-Olsen has written a stimulating article on the various ways in which trade unions affect labour markets. My comment will focus on the effects on productivity. In economics, this is perhaps…
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Foreign Affairs
The Inequality Myth: Western Societies Are Growing More Equal, Not Less
Spend a few minutes browsing political commentary or scrolling social media and you will discover a seemingly settled truth: inequality in the West is soaring, the middle class is being hollowed out,…
Popular Science
VoxEU
The Nordic model of wage coordination at a crossroads
Strong coordination of wage setting has been maintained in Nordic countries through pattern bargaining. The tradables sector sets the first agreement, which then serves as the nationwide norm for sub…
Popular Science
Nordic Economic Policy Review 2025
Pattern Bargaining as a Means to Coordinate Wages in the Nordic Countries
This article reviews the various forms of pattern bargaining under which manufacturing, as the representative of the tradables sector, sets the norm for wage increases in the Nordic countries. Such ba…
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Working Paper No. 1526
Why a Tariff War May Not Decrease Global CO2 Emissions
It has been suggested that an intensified trade war between China and the US could reduce CO2 emissions associated with exports. We develop an export-greenfield-endogenous merger model, showing t…
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Ekonomisk Debatt
Den inre fienden och den yttre framgången
Glenn Loury began his academic career as a theorist. His combination of analytical skills and originality in his choice of research topics led him to become the first black [tenured] professor of econ…
Popular Science
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Economics Letters
The Effect of an Anonymous Grading Reform for Male and Female University Students
This paper leverages a university-wide anonymous grading reform and presents evidence that female university students benefit from anonymous grading. Female grades improve by around 0.035 standard dev…
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The Depth and Size of the European Union in a Time of War
European Integration in a Time of War: Can the EU Gear Up to Face Unprecedented Internal and External Challenges?
In this chapter, the authors explore how Russia’s large-scale invasion of Ukraine in 2022 has acted as a trigger for a future EU enlargement and how the Union and its member states have taken an inevi…
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The Depth and Size of the European Union in a Time of War
What Can the EU Learn from Brexit?
The UK’s relationship with Europe has long been a contentious issue. This chapter explores the UK's decision to remain outside early European integration in the 1950s, its shift towards seeking member…
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The Depth and Size of the European Union in a Time of War
Reconsidering the Depth and Size of the EU in View of Enlargement in a Time of War
In the final chapter, the authors discuss the forthcoming enlargement of the European Union (EU), focusing on both its depth and size. It is argued that while previous enlargements also had a geopolit…
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European Economic Review
"Try to Balance the Baseline": A Comment on "Parent-Teacher Meetings and Student Outcomes: Evidence from a Developing Country" by Islam (2019)
Islam (2019) reports results from a cluster randomized field experiment in Bangladesh that examines the effects of parent–teacher meetings on student test scores in primary schools. The reported findi…
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The Depth and Size of the European Union in a Time of War
This open access book, the eighth volume in the series of Interdisciplinary European Studies, explores the implications of the EU’s size and depth at a time of war in Europe. Russia’s fateful decision…
Book
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Working Paper No. 1525
EU Investment Treaties in the Geoeconomic Competition for EV Minerals
EU member state investment treaties have been criticized for potentially deterring EU countries from pursuing desirable policy measures. This paper explores whether these treaties can nonetheless serv…
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Financial History Review
The Economics of Small Change: Resolving Coinage Challenges in Medieval Europe
In medieval Europe’s coinage systems, the introduction of small denomination coins was a significant challenge due to their higher relative production costs, often leading to shortages. To address thi…
Journal Article
Small Business Economics
Risky Business: Venture Capital, Pivoting and Scaling
The creation and scaling of startups are inherently linked to risk-taking, with various types of owners handling these risks differently. This paper investigates the influence of an active venture cap…
Journal Article
Journal of Urban Economics
The Effect of Water Filtration on Cholera Mortality
This paper examines how water filtration and distribution helped reduce mortality during a cholera outbreak. Using household water contract records and individual mortality data, I analyze the impact…
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Journal for Labour Market Research
A Study of Job Polarization in Sweden from an Urban-Rural Perspective
This study is an explorative examination of changes in employment, revenue, and firm structure for low, mid, and high-skill firms in urban and rural areas in Sweden from 2007-2019, using skill groups…
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International Environmental Agreements: Politics, Law and Economics
Investment Treaties and the Replacement of Stranded Investment
A common claim holds that investment treaties reduce the willingness of host countries to regulate foreign-owned, environmentally-stranded, investments. A counter-argument is that the treaties can yie…
Journal Article
Mises Institute
Green Deals and “Moonshots”: Fertile Soil for Crony Capitalism
Since the financial crisis, industrial policy has experienced a renaissance in the Western world. “Missions” or “moonshots” are put in place by policymakers in order to address societal challenges. Go…
Popular Science
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Working Paper No. 1524
The Impact of Firm-Influenced Vocational Education on Labor Market and Demographic Outcomes
This paper examines the impact of a Swedish policy allowing manufacturing firms to influence the curricula of local educational institutions. Our analysis shows that the program has contributed to a s…
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Journal of School Choice
The Profit Motive in the Classroom—Friend or Foe?
Can competition and the existence of profit-seeking actors in the school market improve educational quality? To see cost-efficient, long-term improvements, we identify the school system’s capacity for…
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Annals of Regional Science
The EU’s Competitive Advantage in the 'Clean-Energy Arms Race'
The net-zero agreement on carbon emission from Paris 2015 gives a key role to fossil-free energy technologies with an expected multifold growth rate over the coming decades, when successively replacin…
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Working Paper No. 1523
Is Green Industrial Policy the Right Choice for the EU?
This paper critically evaluates the European Union’s shift towards large-scale green industrial policies. It highlights the risks of government-directed resource allocation, such as inefficiencies, mi…
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Eastern Economic Journal
Much Ado about Nothing? Counterterrorist Legislation has Few Effects
Terrorism causes anger and fear among citizens, but also often leads to counterterrorist legislation (CTL). We explore determinants of CTL and whether it affects the likelihood of terrorism and limits…
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Working Paper No. 1522
The Role of Specialized Knowledge and ‘Know-How’ for Firm Productivity: Evidence from the Equine Industry
Using matched employer–employee data, we investigate the influence of human capital inputs on firm productivity. Several variables are used to measure firms’ access to skilled labor, such as their sha…
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American Economic Journal: Applied Economics
Home, Sweet Home: Returns to Returning in the Age of Mass Migration
Despite significant circular migration flows historically and today, their economic impacts remain understudied. Using data on predominantly rural Swedish migrants who returned from the US during the…
Journal Article
Differentiated Integration in a Nordic Perspective
The Economics behind the Directive on Adequate Minimum Wages in the EU: Why Differentiated Integration is a Better Option
This chapter discusses the underlying economic analysis of the Directive regarding the effects of increased minimum wages on employment and incomes for low-paid workers and the European Commission’s p…
Book Chapter
Scandinavian Political Studies
Retrenchment without Liberalisation: Making Sense of Sweden's Shift Away from Consensual and Evidence-Based Politics
Fifteen years ago, Bergh and Erlingsson (2009) argued that Sweden's period from 1980 to 2000 was characterised by “liberalisation without retrenchment”. This resulted from pragmatic policymaking, a co…
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Economic Affairs
What’s Ideological about Limited Government?
How does government ideology affect the size of government? This article employs data on government spending and regulation using a new disaggregation scheme and new causal strategy. It finds that gov…
Journal Article
Economic Affairs
Not Just the Top Five Journals: A Recipe for European Economists
Recently, the incentive structure facing doctoral students and researchers in economics has changed significantly in many European countries as a result of the adoption of the US approach to evaluatin…
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Differentiated Integration in a Nordic Perspective
Following an interdisciplinary approach and focusing on the idea of the Nordics as a laboratory of differentiation, the book explores specific Nordic concerns in policy fields such as the labour marke…
Book
Working Paper No. 1521
Coming Together or Coming Apart? Crises, Uncertainty and Tolerance
Uncertainty affects people in various ways. It is frequently found to hinder investment and production in the economic sphere. In this study, we examine the empirical relationship between uncertainty…
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Review of Economics of the Household
Household Specialization and Competition for Promotion
We study how the presence of promotion competition in the labor market affects household specialization patterns. By embedding a promotion tournament model in a household setting, we show that special…
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Working Paper No. 1520
E-scooters and Traffic Accidents: Evidence from Staggered Roll-Out in Swedish Municipalities
The rapid rise of e-scooters (electric scooters) in cities around the world, boosted by the introduction of shared e-scooter services has visibly reshaped the way people move around cities, sparking b…
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Working Paper No. 1519
Not Just the Top Five Journals: A Recipe for European Economists
We provide a critical analysis of the adoption of the US ‘top-five model’ by European economics academia. This model prioritizes publications in five elite journals, heavily influencing the career tra…
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Working Paper No. 1518
Coup d’États, Institutional Change, and Productivity
Understanding the consequences and recovery for countries hit by adverse national events such as political crises is central to understanding long-run development dynamics. Utilizing the Coleman boat…
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Working Paper No. 1517
Pattern Bargaining as a Means to Coordinate Wages in the Nordic Countries
The various form of pattern bargaining with manufacturing, as representative of the tradables sector, deciding the norm for wage increases in the Nordic countries are reviewed. This form of bargaining…
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