Published articles in English 2014

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Published articles in English 2014 (Reference formatted list)

Prime Minister’s Office Report 6/2014

Ownership and Governance of Large Finnish Firms

Ulf Jakobsson and Timo Korkeamäki

In this report, we study the ownership structure of large Finnish firms. We make an overview of the evolution of corporate ownership in Finland from the 1970s to today, and contrast the Finnish setting to international patterns of ownership. Factors that make the…

Economics & Human Biology

Social Capital and Health: Evidence that Ancestral Trust Promotes Health Among Children of Immigrants

Martin Ljunge

Labour Economics

Sweden's School Choice Reform and Equality of Opportunity

Karin Edmark, Markus Frölich and Verena Wondratschek

This study analyses whether the Swedish school choice reform, enacted in 1992, had differential effects for students from different socio-economic backgrounds. We use detailed geographical data on students' and schools' locations to construct measures of the…

The Annual Proceedings of the Wealth and Well-Being of Nations

The Soft Side of Economic Freedom

Niclas Berggren

Journal of International Economics

Globalization and Imperfect Labor Market Sorting

Carl Davidson, Fredrik Heyman, Steven Matusz, Fredrik Sjöholm and Susan Chun Zhu

This paper focuses on the ability of the labor market to efficiently match heterogeneous workers to jobs within a given industry and the role that globalization plays in that process. Using matched worker–firm data from Sweden, we find strong evidence that…

International Journal of Industrial Organization

Acquisitions, Entry, and Innovation in Oligopolistic Network Industries

Pehr-Johan Norbäck, Lars Persson and Joacim Tåg

In industries with network effects, incumbents' installed bases create barriers to entry that discourage entrepreneurs fromdeveloping newinnovations. Yet, entry is not the only commercialization route for entrepreneurs.We show that the option of selling to an…

Development Policy Review

Expanding and Diversifying South Mediterranean Exports through Trade Facilitation

Yves Bourdet and Maria Persson

This article explores whether trade facilitation – i.e. improved and simplified trade procedures – could be an important part of the reform agenda of the Barcelona Process. Adopting a Southern perspective by focusing on exports to the European Union (EU)…

Nordic Tax Journal

Swedish Taxation in a 150-year Perspective

Mikael Stenkula

This paper examines the development of taxation in Sweden from 1862 to 2010. The examination includes six key aspects of the Swedish tax system, namely the taxation of labor income, capital income, wealth, inheritances and gifts, consumption and real estate. The…

Applied Economics Letters

Market Institutions Bring Tolerance, Especially Where There Is Social Trust

Niclas Berggren and Therese Nilsson

Tolerant societies seem to function better than nontolerant societies both economically and socially. This makes it worthwhile to identify ways to stimulate tolerance. While previous research indicates that market-oriented formal institutions and policies offer such…

Journal of Mathematical Sociology

Key Player Policies When Contextual Effects Matter

Coralio Ballester and Yves Zenou

We consider a model where the criminal decision of each individual is affected by not only her own characteristics, but also by the characteristics of her friends (contextual effects). We determine who the key player is, i.e., the criminal who once removed generates…

Theoretical Economics

Nestedness in Networks: A Theoretical Model and Some Applications

Michael D. König, Claudio J. Tessone and Yves Zenou

We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are formed on the basis of agents' centrality and have an exponentially distributed lifetime. We use stochastic stability to identify the networks…

Journal of Economic Behavior & Organization

Trust Issues: Evidence on the Intergenerational Trust Transmission Among Children of Immigrants

Martin Ljunge

This paper estimates the intergenerational transmission of trust by studying children of immigrants in 29 European countries with ancestry in 87 nations. There is significant transmission of trust on the mother's side, and the transmission is significantly…

World Development

Is Globalization Reducing Absolute Poverty?

Andreas Bergh and Therese Nilsson

Using data from 114 countries (1983–2007), we examine the relationship between globalization and World Bank absolute poverty estimates. We find a significant negative correlation between globalization and poverty, robust to several econometric specifications,…

Small Business Economics

Entrepreneurship, Innovation and Human Flourishing

Magnus Henrekson

This essay uses Edmund Phelps’ new book Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change (Phelps 2013) as inspiration to discuss innovation and entrepreneurship. The book is laudable for its discussion of what constitutes a…

Journal of the European Economic Association

Shades of Brown and Green: Party Effects in Proportional Election Systems

Olle Folke

In proportional representation (PR) systems, political power is typically shared across several political parties. Many parties are small and focused on specific policies, such as environmental policy and immigration. Do these small parties matter for policy? I…

Journal of Economics

Taxation and the Quality of Entrepreneurship

Andrea Asoni and Tino Sanandaji

We study the effect of taxation on entrepreneurship, investigating how taxes affect both the number of start-ups and their average quality. We show theoretically that even with risk neutral agents and no tax evasion progressive taxes can increase entrepreneurial…

European Journal of Political Economy

Trust, Welfare States and Income Equality: Sorting out the Causality

Andreas Bergh and Christian Bjørnskov

The cross-country correlation between social trust and income equality is well documented, but few studies examine the direction of causality. We show theoretically that by facilitating cooperation, trust may lead to more equal outcomes, while the feedback from…

Journal of Development Economics

Entrepreneurship Policy and Globalization

Pehr-Johan Norbäck, Lars Persson and Robin Douhan

What explains the world-wide trend of pro-entrepreneurial policies? We study entrepreneurial policy in the form of entry costs in a lobbying model taking into account the conflict of interest between entrepreneurs and incumbents. It is shown that international market…

New Political Economy

What are the Policy Lessons from Sweden? On the Rise, Fall and Revival of a Capitalist Welfare State

Andreas Bergh

This paper discusses a number of questions with regard to Sweden's economic and political development:

• How did Sweden become rich?

• What explains Sweden's high level of income equality?

• What were the causes of…

World Tax Journal

Tax Incentives, Tax Expenditures Theories in R&D: The Case of Sweden

Åsa Hansson and Cécile Brokelind

This article investigates whether public funds should support R&D and if so, how such support should be designed in order to be efficient and to comply with the legal requirements stated in EU law and in domestic budget law. The article puts the emphasis on tax…

Empirical Economics

Income Inequality Between Chinese Regions: Newfound Harmony or Continued Discord?

Johan Lyhagen and Johanna Rickne

This paper develops an improved test of economic convergence or divergence using time series methods by introducing nonlinear trends in the form of logarithmic trend functions into the vector error correction model. The usefulness of the method is illustrated in an…

RAND Journal of Economics

Network Competition with Income Effects

Thomas Tangerås

I generalize the workhorse model of network competition to include income effects in demand. Empirical work has shown income effects to be positive and statistically significant. Income effects deliver theoretical results consistent with regulatory concern about…

Oxford Development Studies

Globalization and Institutional Quality – A Panel Data Analysis

Andreas Bergh, Irina Mirkina and Therese Nilsson

Using data on institutional quality and the KOF Globalization Index, we examine over 100 countries from 1992 to 2010 to analyse the relationship between economic and social globalization and six measures of institutional quality, thereby testing Montesquieu's…

Southern Economic Journal

When More Poor Means Less Poverty: On Income Inequality and Purchasing Power

Andreas Bergh and Therese Nilsson

We show theoretically that the poor can benefit from price changes induced by higher income inequality. As the number of poor increases, the market for products aimed toward the poor grows, and such products become more profitable. As a result, there are…

Journal of Health Economics

The Impact of the 1918 Spanish Flu Epidemic on Economic Performance in Sweden

Martin Karlsson, Therese Nilsson and Stefan Pichler

We study the impact of the 1918 influenza pandemic on short- and medium-term economic performancein Sweden. The pandemic was one of the severest and deadliest pandemics in human history, but it hashitherto received only scant attention in the economic literature…

Journal of Economic Behavior & Organization

Endogenous Peer Effects: Local Aggregate or Local Average?

Xiaodong Liu, Eleonora Patacchini and Yves Zenou

We develop a unified model embedding different behavioral mechanisms of social interac-tions and design a statistical model selection test to differentiate between them in empiricalapplications. This framework is applied to study peer effects in education (effort in…

Tests Worth Teaching to Incentivising Quality in Qualifications and Accountability

Incentives and Iignorance in Qualifications, Assessment, and Accountability

Robert Coe and Gabriel Heller Sahlgren

Historical Monetary and Financial Statistics for Sweden, Volume II: House Prices, Stock Returns, National Accounts, and the Riksbank Balance Sheet, 1620–2012

Swedish Stock and Bond Returns, 1856–2012

Daniel Waldenström

This chapter presents historical evidence about Swedish stock prices, dividends, and yields on government fixed-interest securities. Monthly returns are presented since 1901 for stocks, since 1874 for government long-term bonds and since 1856 for short-term Treasury…

IZA World of Labor

How Labor Market Institutions Affect Job Creation and Productivity Growth

Magnus Henrekson

Economic growth necessitates extensive churning and restructuring, the bulk of which is about shifts from less to more successful firms within the same industry. Labor market institutions favoring reallocation and dynamism include portability of tenure rights, fully…

Economics of Innovation and New Technology

Micro Evidence on International Patenting

Per Botolf Maurseth and Roger Svensson

Globalization, high growth rates in high-tech industries, growing emerging markets and harmonization of patent institutions across countries have stimulated patenting in foreign markets. We use a simple model of international patenting, where the decision to patent…

Journal of Economics & Management Strategy

Different Problem, Same Solution: Contract-Specialization in Venture Capital

Ola Bengtsson and Dan Bernhardt

Real-world financial contracts vary greatly in the combinations of cash flow contingency terms and control rights used. Extant theoretical work explains such variation by arguing that each investor finely tailors contracts to mitigate investment-specific incentive…

Empirical Economics

Are the Choices of People Stochastically Rational? A Stochastic Test of the Number of Revealed Preference Violations

Per Hjertstrand and James L. Swofford

Revealed preference tests are frequently used to check data on the behavior of agents for consistency with economic theory. Unfortunately these tests lack a stochastic element and thus one violation of revealed preference causes a rejection of the behavior being…

World Economy

Born to be Global and the Globalisation Process

Pehr-Johan Norbäck and Lars Persson

During the last decades, we have witnessed a large number of entrepreneurial firms that reach the world market at a fast pace (‘born global firms’). Our analysis suggests that the ongoing globalisation process indeed implies that born to be global firms…

Journal of Institutional Economics

Measuring Institutional Quality in Ancient Athens

Andreas Bergh and Carl Hampus Lyttkens

We use the Economic Freedom Index to characterize the institutions of the Athenian city-state in the fourth century BCE. It has been shown that ancient Greece witnessed improved living conditions for an extended period of time. Athens in the fourth century appears to…

European Journal of Political Economy

Social Trust and Central-Bank Independence

Niclas Berggren, Sven-Olov Daunfeldt and Jörgen Hellström

Central banks have become more independent in many countries. A common rationale has been the existence of a credibility (or lack-of-trust) problem for monetary policy. This indicates a possible and until now unexplored link between social trust and central-bank…

Nordic Tax Journal

The Rise and Fall of Swedish Wealth Taxation

Magnus Henrekson and Gunnar Du Rietz

We study the evolution of modern Swedish wealth taxation from its introduction in 1911 until it was abolished in 2007. The rules concerning valuation of assets, deductions/exemptions and tax schedules to characterize effective wealth tax schedules are described.…

Journal of Public Economics

Entrepreneurial Innovations and Taxation

Andreas Haufler, Pehr-Johan Norbäck and Lars Persson

Stimulating entrepreneurship is high on the policy agenda of many countries. We study the effects of tax policies on entrepreneurs' choice of riskiness (or quality) of an innovation project, and on their mode of commercializing the innovation (market entry versus…

Games and Economic Behavior

Robustness to Strategic Uncertainty

Ola Andersson, Cédric Argenton and Jörgen W. Weibull

We introduce a criterion for robustness to strategic uncertainty in games with continuum strategy sets. We model a player's uncertainty about another player's strategy as an atomless probability distribution over that player's strategy set. We call a…

Acta Politica

The Single-Issue Party Thesis and the Sweden Democrats

Gissur Ó. Erlingsson, Kåre Vernby and Richard Öhrvall

When commenting on the European radical right, the term ‘single-issue party’ is frequently bandied about. We survey the various conceptualizations of the term and then apply them to the Sweden Democrats (SD), a party with roots in extremist subcultures…

Scandinavian Economic History Review

Marginal Taxation on Labour Income in Sweden from 1862 to 2010

Mikael Stenkula, Dan Johansson and Gunnar Du Rietz

This paper presents annual Swedish time series data on the top marginal tax wedge and marginal tax wedges on labour income for a low-, average- and high-income earner for the period 1862–2010. These data are unique in their consistency, thoroughness and…

Oxford Bulletin of Economics and Statistics

Indirect Estimation of Semiparametric Binary Choice Models

Joakim Westerlund and Per Hjertstrand

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 a semiparametric estimator for use when the distribution of the error term is unknown. However, although theoretically appealing,…

Nordic Economic Policy Review

Effects of Payroll Tax Cuts for Young Workers

Per Skedinger

In response to high and enduring youth unemployment, large payroll tax cuts for young workers were implemented in two Swedish reforms in 2007 and 2009. This paper analyses the effects of the reforms on worker outcomes and firm performance in the retail industry, an…

Open Economies Review

Labor Taxation and FDI Decisions in the European Union

Åsa Hansson and Karin Olofsdotter

This paper uses panel data on bilateral FDI stocks in the European Union to empirically analyze the impact of labor and corporate taxations on FDI decisions. While the effect of corporate taxes on FDI is well documented, the impact of labor taxes on FDI has barely…

Energy Journal

Scrapping a Wind Turbine: Policy Changes, Scrapping Incentives and Why Wind Turbines in Good Locations Get Scrapped First

Johannes Mauritzen

The most common reason for scrapping a wind turbine in Denmark is to make room for a newer turbine. The decision to scrap a wind turbine is then highly dependent on an opportunity cost that comes from the interaction of scarce land resources, technological change and…

American Political Science Review

Pre-Birth Factors, Post-Birth Factors, and Voting: Evidence from Swedish Adoption Data

David Cesarini, Magnus Johannesson and Sven Oskarsson

This article analyzes a rich Swedish data set with information on the electoral turnout of a large sample of adoptees, their siblings, their adoptive parents, and their biological parents. We use a simple regression framework to decompose the parent-child resemblance…

International Journal of Economic Theory

Multilateral Environmental Agreements in the WTO: Silence Speaks Volumes

Henrik Horn and Petros C. Mavroidis

This study contributes to the debate concerning the appropriate role of multilateral environmental agreements (MEAs) in WTO dispute settlement. It seeks to address this relationship in light of the reason why the parties have chosen to separate their obligations into…

Electoral Studies

Does Election Day Weather Affect Voter Turnout? Evidence from Swedish Elections

Mikael Persson, Anders Sundell and Richard Öhrvall

Does rainfall during the Election Day reduce voter turnout? Previous research shows that in the US one inch of rain reduces turnout with about one percentage point. We turn to the Swedish context in order to test whether rainfall on Election Day have the same impact…

Journal of Economic Theory

Social Networks and Interactions in Cities

Robert W. Helsley and Yves Zenou

We examine how interaction choices depend on the interplay of social and physical distance, and show that agents who are more central in the social network, or are located closer to the geographic center of interaction, choose higher levels of interactions in…

Economic Journal

The Elements of Political Persuasion: Content, Charisma and Cue

Torun Dewan, Macartan Humphreys and Daniel Rubenson

Political campaigns employ complex strategies to persuade voters to support them. We analyse the contributions of elements of these strategies using data from a field experiment that randomly assigned canvassers to districts, as well as messaging and endorsement…

Proceedings of the National Academy of Sciences of the United States of America (PNAS)

Small Business Activity Does not Measure Entrepreneurship

Magnus Henrekson and Tino Sanandaji

Entrepreneurship policy mainly aims to promote innovative Schumpeterian entrepreneurship. However, the rate of entrepreneurship is commonly proxied using quantity-based metrics, such as small business activity, the self-employment rate, or the number of startups. We…

European Economic Review

Multinational Firms, Acquisitions and Job Tasks

Katariina Nilsson Hakkala, Fredrik Heyman and Fredrik Sjöholm

We revisit the question how inward FDI and multinational ownership affect relative labor demand. Motivated by the recent literature that distinguish between skills and tasks, we argue that the impact of multinational and foreign ownership on the demand for labor is…

Small Business Economics

The International Mobility of Billionaires

Tino Sanandaji

This paper uses data from Forbes Magazine’s list of billionaires, supplemented with other publicly available information, to study the migratory behavior of the very rich. Billionaires are more likely to move to countries that share a language and a culture…

International Journal of Public Administration

Not so Fair after All? Perceptions of Procedural Fairness and Satisfaction with Democracy in the Nordic Welfare States

Gissur Ó. Erlingsson, Jonas Linde and Richard Öhrvall

The Nordic countries are known for their well-functioning public administrations. In indices measuring control of corruption and the quality of the rule of law, they frequently occupy top positions. However, as we demonstrate in this article, a country’s top…

International Regional Science Review

Labor Differentiation and Agglomeration in General Equilibrium

Marcus Berliant and Yves Zenou

The aim of this article is to explore the structure of cities as a function of labor differentiation, gains to trade, a fixed cost for constructing the transportation network, a variable cost of commodity transport, and the commuting costs of consumers. Firms use…

Economics Letters

Social Capital and Political Institutions: Evidence that Democracy Fosters Trust

Martin Ljunge

This paper finds evidence that more democratic political institutions increase trust. Second generation immigrants with ancestries from 115 countries are studied within 30 European countries. Comparing individuals born and residing in the same country, those whose…

Labour Economics

The Co-Twin Methodology and Returns to Schooling — Testing a Critical Assumption

Örjan Sandewall, David Cesarini and Magnus Johannesson

Twins-based estimates of the return to schooling have featured prominently in the economics of education literature. Their unbiasedness hinges critically on the assumption that within-pair variation in schooling is explained by factors unrelated to wage earning…


Salivary Testosterone Change Following Monetary Wins and Losses Predicts Future Financial Risk-taking

Coren Apicella, Anna Dreber and Johanna Möllerström

While baseline testosterone has recently been implicated in risk-taking in men, less is known about the effects of changing levels of testosterone on financial risk. Here we attempt to influence testosterone in men by having them win or lose money in a chance-based…

Applied Economics

Costs of Misspecification in Break-model Unit-root Tests

Florin Maican and Richard J. Sweeney

This article examines power issues for the ADF and four break models (Perron, 1989; Zivot and Andrews, 1992) when the DGP corresponds to one of the break models. Choosing to test an incorrect break model can, but need not, greatly reduce the probability of rejecting…

Independent Review

The Calculus of Consent at Fifty: Insights for Liberalism

Niclas Berggren

Interdisciplinary European Studies

The European Union and the Return of the Nation State


This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

About the book


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To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

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