Journal of World Trade
Henrik Horn, Louise Johannesson and Petros C. Mavroidis
The World Trade Organization (WTO) is the busiest state to state court nowadays. It is a rarity in international relations since it includes compulsory third-party adjudication and a permanent second instance court. This paper aims to shed light on the actual use of…
World Economy
Henrik Horn and Petros C. Mavroidis
This paper addresses two fundamental questions concerning environmentally motivated border tax adjustments (BTAs), when viewed from a trade policy perspective. First, under what conditions can WTO Members lawfully impose such measures? This issue is addressed in…
Asian Development Review
Robert E. Lipsey and Fredrik Sjöholm
This paper attempts to measure the size of South–South foreign direct investment (FDI) in developing East Asia and the trends in it, the characteristics of the investing countries, and the investments themselves. It also summarizes the findings of studies in…
Scandinavian Economic History Review
Harald Edquist
This paper investigates labor productivity growth and the contribution to labor productivity growth in Swedish manufacturing during the diffusion of electric motors and ICT. The paper distinguishes between technology-producing, intensive and less intensive…
The B.E. Journal of Theoretical Economics
Fredrik Andersson
The make-or-buy decision is analyzed in a simple framework combining contractual incompleteness with the existence of an imperfect but contractible performance measure. Contractual incompleteness gives rise to two regimes, identified with make and buy. The…
Journal of Regional Science
Eleonora Pattacchini and Yves Zenou
We analyze the intergenerational transmission of education focusing on the interplay between family and neighborhood effects. We develop a theoretical model suggesting that both neighborhood quality and parental effort are of importance for the education attained by…
Review of World Economics
Wolfgang Hess and Maria Persson
The objective of this paper is to perform an empirical description and analysis of the duration of EU imports from the rest of the world. Toward this aim, we employ a rich data set of detailed imports to individual EU-15 countries from 140 non-EU exporters, covering…
Behavior Genetics
Jonathan Beauchamp, David Cesarini, Magnus Johannesson, Erik Lindqvist and Coren Apicella
A robust positive correlation between height and intelligence, as measured by IQ tests, has been established in the literature. This paper makes several contributions toward establishing the causes of this association. First,we extend the standard bivariate ACE model…
Review of Income and Wealth
Harald Edquist
In the early 1990s the Swedish economy experienced a severe economic and financial crisis which resulted in a substantial GDP decrease. Even though the crisis was not a complete surprise for many economists, almost no one expected that the Swedish economy would be…
Journal of Economic Behavior & Organization
Niclas Berggren and Christian Bjørnskov
We look at the effect of importance of religion in daily life on social trust, defined as the share of a population that thinks that people in general can be trusted. We make use of new data from the Gallup World Poll for 109 countries and 43 U.S. states. Our…
The Manchester School
Magnus Henrekson and Daniel Waldenström
Billions are allocated annually to university research. The increased specialization and international integration of research and researchers has animated the need for comparisons of performance across fields, institutions and individual researchers. However, there…
Journal of Environmental Economics and Management
Henrik Horn
The WTO leaves discretion over environmental policies to its members, but requests that a fundamental non-discrimination principle is respected: National Treatment (NT). The provision seeks to prevent protectionist use of domestic policy instruments, requesting that…
Journal of Economic Surveys
Andreas Bergh and Magnus Henrekson
The literature on the relationship between the size of government and economic growth is full of seemingly contradictory findings. This conflict is largely explained by variations in definitions and the countries studied. An alternative approach – of limiting…
Man is by Nature a Political Animal
Coren Apicella and David Cesarini
European Economic Review
Alberto Bisin, Eleonora Patacchini, Thierry Verdier and Yves Zenou
We develop a dynamic model of identity formation that explains why ethnic minorities may choose to adopt oppositional identities (i.e. some individuals may reject or not the dominant culture) and why this behavior may persist over time. We first show that the…
Journal of the European Economic Association
Alberto Bisin, Eleonora Patacchini, Thierry Verdier and Yves Zenou
We are thankful to Michael Lundholm and Mahmood Arai for pointing us towards a coding error which invalidates the regressions in our paper. Correcting the code leads to a decrease in sample sizes, though much smaller than Arai et al. (2011) claim based on their…
Nordic Economic Policy Review
Assar Lindbeck
Nordic Economic Policy Review
Per Skedinger
This article surveys the literature and adds to the evidence on the impact of employment protection legislation on employment. While stringent employment protection contributes to less turnover and job reallocation, the effects on aggregate employment and…
Strategic Entrepreneurship Journal
Frédéric Delmar, Karl Wennberg and Karin Hellerstedt
Endogenous growth theory suggests that technological knowledge stimulates growth, yet the micro-foundations of this process remain obscure. Knowledge spillover theory posits that growth is contingent on the technology dependence of industries, forming the landscape…
Independent Review
Tino Sanandaji and Björn Wallace
Do voters tend to underestimate the costs of government spending? Several features of its tax system make Sweden unusually well suited for testing the proposition that voters systematically misperceive the price tag of new government programs.
Handbook of Research on Entrepreneurship and Regional Development: National and Regional Perspectives
Magnus Henrekson and Dan Johansson
American Political Science Review
Olle Folke, Shigeo Hirano and James M. Snyder Jr.
Does control of patronage jobs significantly increase a political party’s chances of winning elections in U.S. states? We employ a differences-in-differences design, exploiting the considerable variation in the dates that different states adopted civil service…
Small Business Economics
Magnus Henrekson and Tino Sanandaji
A review of the literature on firm taxation reveals that the economics of entrepreneurship has not sufficiently been taken into consideration. We discuss how this affects conclusions derived from standard models of capital taxation when applied to entrepreneurial…
Quarterly Review of Economics and Finance
Jens Forssbaeck and Lars Oxelheim
Financial market incompleteness and (partial) segmentation of financial markets internationally may endow some firms with a financial advantage which can be exploited through foreign direct investment. We argue that this advantage appears as a distinct…
Review of Economics and Statistics
Jesper Roine and Daniel Waldenström
We use newly compiled top income data and structural breaks techniques to estimate common trends and breaks in inequality across countries over the twentieth century. Our results both confirm earlier findings and offer new insights. In particular, the division into…
RSCAS Policy Papers 2011/02
Henrik Horn and Petros C. Mavroidis
Journal of Development Economics
Yves Zenou
We develop a search-matching model with rural–urban migration and an explicit land market. Wages, job creation, urban housing prices are endogenous and we characterize the steady-state equilibrium. We then consider three different policies: a transportation…
The Future of Foreign Direct Investment and the Multinational Enterprise
Jens Forssbaeck and Lars Oxelheim
In this chapter we analyze the role of financial factors in the underlaking of cross-border acquisitions. We discuss financial firm-specific advantages as drivers of these acquisilions as well as the role of the development of the home financial market in exploiting…
Games and Economic Behavior
Antonio Cabrales, Antoni Calvó-Armengol and Yves Zenou
The aim of this paper is to provide a tractable model where both socialization (or network formation) and productive efforts can be analyzed simultaneously. This permits a fullfledged
equilibrium/welfare analysis of network formation with endogenous productive…
Japanese Yearbook of International Law, Vol. 53, 2010
Henrik Horn and Petros C. Mavroidis
The purpose of this paper is to discuss the legal possibility for WTO Members to use trade remedies in the form of BTAs/BCAs against other WTO Member, without pronouncing on the policy question concerning the desirability for such schemes.
Canadian Journal of Economics
Fredrik Heyman, Fredrik Sjöholm and Patrik Gustavsson Tingvall
We examine the impact of cross-border acquisitions on intra-firm wage dispersion using a detailed Swedish linked employer-employee data set including data on all firms and about 50% of the Swedish labour force with information on job-tasks and education. Foreign…
Journal of Economic Geography
Yves Zenou
We develop an urban-search model in which firms post wages. When all workers are identical, there is a unique wage in equilibrium even in the presence of search and spatial frictions. This wage is affected by spatial and labor costs. When workers differ according to…
Journal of Industry, Competition and Trade
Pehr-Johan Norbäck
In this paper, I investigate whether instead of strengthening home-based production, government R&D-subsidies can induce R&D-intensive firms to locate production abroad. Investigating firm-level data on Swedish MNEs, however, I find no evidence of such…
Journal of Economic Literature
Andreas Bergh, Lars Persson, Per Skedinger and Joacim Tåg
(i) François Lévêque and Howard Shelanski, (eds.), Antitrust and Regulation in the EU and US: Legal and Economic Perspectives (Cheltenham, UK, and Northamprton, MA: Edward Elgar, 2009), reviewed by Lars Persson and Joacim Tåg (Vol.…
Journal of Public Economics
Dick Durevall and Magnus Henrekson
This paper carries out a critical reappraisal of the two contending theories purporting to explain long-run government spending: Wagner's Law and different variants of the ratchet effect. We analyze data spanning from the early 19th century until the present day…
History of Economic Ideas
Magnus Henrekson
The Industrial Institute for Economic and Social Research (Industriens Utredningsinstitut, IUI) was founded in 1939. In less than ten years, IUI grew from a small survey bureau to a leading research institute focused on microeconomic research relevant to industrial…
International Journal of Managerial Finance
Niclas Andrén and Lars Oxelheim
The financial crisis starting in 2008 made many European countries opt for a change of exchange rate regime. The choice of price measure as an entry requirement to the European Economic and Monetary Union (EMU) and as input in the monetary policy decision process…
Bulletin of Indonesian Economic Studies
Robert E. Lipsey and Fredrik Sjöholm
Foreign direct investment (FDI) has been important in the growth and global integration of developing economies. Both Northeast and Southeast Asia, especially the latter, have been part of this development, with increasing inflows of FDI and greater foreign…
Financial Contagion: The Viral Threat to the Wealth of Nations
Lars Oxelheim, Clas Wihlborg and Finn Østrup
Handbook of Philosophy of Social Science
Joan de Martí and Yves Zenou
Journal of Regional Science
Yves Zenou
We develop a regional model where, in the city, unemployment prevails because of too high (efficiency) wages, while, in the rural area, workers are paid at their marginal productivity. We characterize the steady-state equilibrium and show that it is unique. We then…
Kyklos
Andreas Bergh and Christian Bjørnskov
Economic Policy
Alberto Bisin, Eleonora Patacchini, Thierry Verdier and Yves Zenou
We study the relationship between ethnic identity and labour market outcomes of non-EU immigrants in Europe. Using the European Social Survey, we find that there is a penalty to be paid for immigrants with a strong identity. Being a first generation immigrant leads…
Energy Journal
Pär Holmberg
This paper analyses a wholesale electricity market with supply function competition. Trade in the forward and spot markets is represented by a two-stage game, and its subgame perfect Nash equilibrium (SPNE) is characterized. It is verified that increased forward…
Journal of Institutional Economics
Magnus Henrekson and Tino Sanandaji
Previous research, notably Baumol (1990), has highlighted the role of institutions in channeling entrepreneurial supply into productive, unproductive, or destructive activities. However, entrepreneurship is not only influenced by institutions – entrepreneurs…
American Economic Journal: Applied Economics
Erik Lindqvist and Roine Vestman
We use data from the Swedish military enlistment to assess the importance of cognitive and noncognitive ability for labor market outcomes. The measure of noncognitive ability is based on a personal interview conducted by a psychologist. We find strong evidence that…
Children and Youth Services Review
Erik Lindqvist
A recurring theme in evaluations of Swedish residential youth care is that treatment is often unplanned. Using a data set of teenagers placed in youth care in 1991 (N=357), we show that planned treatment — in the sense of a known expected duration of treatment…
Labour Economics
Harminder Battu, Paul Seaman and Yves Zenou
Using data from the UK Quarterly Labor Force Survey, this paper examines the job finding methods of different ethnic groups in the UK. Our empirical findings suggest that, though personal networks are a popular method of finding a job for the ethnic minorities, the…