Published articles in English 2016

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Published articles in English 2016 (Reference formatted list)

Review of Financial Studies

Financing from Family and Friends

Samuel Lee and Petra Persson

Most informal finance comes from family and friends. Existing informal finance theories cannot match two characteristics of family finance: family investors may accept below-market or even negative returns, yet borrowers often prefer formal finance. We argue that…

The Economics of International Development: Foreign Aid versus Freedom for the World's Poor

William Easterly's Challenge to the Development Community

Christian Bjørnskov

William Easterly is not only widely known as one of the world’s most eminent development economists, but also as a forceful opponent of the way in which the West tries to promote growth in developing countries. In particular, Easterly has characterised the way…

Public Choice

An offer You Can’t Refuse: Murdering Journalists as an Enforcement Mechanism of Corrupt Deals

Christian Bjørnskov and Andreas Freytag

Anecdotal evidence suggests that journalists and bureaucrats in some countries are killed when they try to blow the whistle on corruption. We demonstrate in a simple game-theoretical model how murders can serve as an enforcer of corrupt deals under certain regime…

Economics Letters

Illegal Migration and Policy Enforcement

Sephorah Mangin and Yves Zenou

Workers from a source country consider whether or not to illegally migrate to a host country. This decision depends crucially on the proportion of workers who migrate and on whether or not the host country government decides to regularize them. When there is no…

World Economy

Aggregation Issues of Foreign Direct Investment Estimation in an Interdependent World

Helen Naughton, Pehr-Johan Norbäck and Ayça Tekin‐Koru

This paper attempts to understand foreign direct investment (FDI) heterogeneity and offers useful insights about aggregation issues in FDI estimations by carrying out a spatial econometric analysis using affiliate-level data on sales activities of Swedish…

Critical Review

A Left/Right Convergence on the New Public Management? The Unintended Power of Diverse Ideas

Johan Wennström

While it might appear self-evident that the trend toward the New Public Management (NPM) in the public administration systems of many Western countries is an outgrowth of neoliberalism, the case of Swedish education suggests that such policies can have widely…

European Journal of Political Economy

Tolerance in the United States: Does Economic Freedom Transform Racial, Religious, Political and Sexual Attitudes?

Niclas Berggren and Therese Nilsson

Tolerance is a distinguishing feature of Western culture. Still, it varies between and within countries, as well as over time, and irrespective of whether one values it for its own sake or for its beneficial consequences, it becomes important to identify its…

European Journal of Political Economy

Economic Freedom and Economic Crises

Christian Bjørnskov

In this paper, I explore the politically contested association between the degree of capitalism, captured by measures of economic freedom, and the risk and characteristics of economic crises. After offering some brief theoretical considerations, I estimate the…

FinanzArchiv: Public Finance Analysis

The Swedish Earned Income Tax Credit: Did It Increase Employment?

Karin Edmark, Che-Yuan Liang, Eva Mörk and Håkan Selin

This paper analyzes the extensive-margin labor-supply effects of a Swedish earned income tax credit introduced in 2007. The reform was one of the government's flagship reforms to boost employment, but its actual effects have been widely debated. We exploit the…

European Economic Review

Bend it Like Beckham: Ethnic Identity and Integration

Alberto Bisin, Eleonora Patacchini, Thierry Verdier and Yves Zenou

We propose a theoretical framework to study the determinants of ethnic and religious identity along two distinct motivational processes: cultural distinction and cultural conformity. Under cultural conformity, ethnic identity is reduced by neighborhood integration,…

Quantitative Economics

Social Networks and Parental Behavior in the Intergenerational Transmission of Religion

Eleonora Patacchini and Yves Zenou

We analyze the intergenerational transmission of the strength of religion focusing on the interplay between family and social influences. We find that parental investment in transmitting religious values and peers' religiousity are complements. The relative…

American Political Science Review

The Primary Effect: Preference Votes and Political Promotions

Olle Folke, Torsten Persson and Johanna Rickne

In this analysis of how electoral rules and outcomes shape the internal organization of political parties, we make an analogy to primary elections to argue that parties use preference-vote tallies to identify popular politicians and promote them to positions of…

Scandinavian Journal of Economics

The Headmaster Ritual: The Importance of Management for School Outcomes

Anders Böhlmark, Erik Grönqvist and Jonas Vlachos

We estimate the impact of individual principals on school outcomes by using panel data that allow us to track principals over time. We find that individual principals have a substantive impact on school policies, working conditions, and student outcomes. In…

Scandinavian Journal of Economics

Lifetime versus Annual Tax-and-Transfer Progressivity: Sweden, 1968–2009

Niklas Bengtsson, Bertil Holmlund and Daniel Waldenström

In this paper, we analyze the evolution of tax-and-transfer progressivity in Sweden over both annual and lifetime horizons. Using a rich micro panel covering the period 1968–2009, we calculate tax rates over a cohort's entire working life cycle. Our main…

Comparative Political Studies

The Glass Ceiling in Politics: Formalization and Empirical Tests

Olle Folke and Johanna Rickne

There is a scarcity of women at the apex of political power, as well as a lack of methods to disentangle the potential sources of this under-representation. This article suggests a four-step method to test for whether women’s under-representation can be…

Scandinavian Economic History Review

The National Wealth of Sweden, 1810–2014

Daniel Waldenström

This study presents a new database, the Swedish National Wealth Database, which contains annual data on private, public, and national wealth and sectoral saving rates in Sweden over the past two centuries. The paper reviews previous investigations of national wealth,…

Labour Economics

One Size Fits All? The Effects of Teachers' Cognitive and Social Abilities on Student Achievement

Erik Grönqvist and Jonas Vlachos

We document a substantial decline in cognitive and social interactive abilities and in GPAs among entering teachers. Then, using matched student-teacher data, we find that teacher abilities have a negligible impact on average student achievement. This finding hides…

Political Communication

The Impact of News Photos on Support for Military Action

Stuart Soroka, Peter Loewen, Patrick Fournier and Daniel Rubenson

Drawing on two experiments embedded in online surveys, this article examines the impact of news photos on support for military action. In 2011, respondents were asked about support for ongoing military involvement in Afghanistan while being randomly exposed to one of…

International Labour Review

Employer Attitudes towards Refugee Immigrants: Findings from a Swedish Survey

Per Lundborg and Per Skedinger

Based on a large-scale survey of Swedish firms, the authors identify significant heterogeneity in their attitudes towards refugee hiring, job performance, wage setting and discrimination, though experience of employing refugees reduces negative attitudes.…

World Economy

Heterogeneous Firms, Globalisation and the Distance Puzzle

Mario Larch, Pehr-Johan Norbäck, Steffen Sirries and Dieter M. Urban

Despite the strong pace of globalisation, the distance effect on trade is persistent or even growing over time (Disdier and Head, 2008). To solve this distance puzzle, we use the recently developed gravity equation estimator from Helpman et al. (2008) (HMR…

Economic History Review

Inheritance Taxation in Sweden, 1885–2004: The Role of Ideology, Family Firms and Tax Avoidance

Magnus Henrekson and Daniel Waldenström

This article studies the evolution of Swedish inheritance taxation since the late nineteenth century to its abolition in 2004. The contribution of this article is twofold. First, the annual effective inheritance tax rates are computed for different sizes of bequests…

Economic History Review

Periodic Recoinage as a Monetary Tax: Conditions for the Rise and Fall of the Bracteate Economy

Roger Svensson

Scholars in the fields of archaeology and numismatics have long been familiar with the phenomenon of periodic recoinage (renovatio monetae), which dominated monetary taxation in medieval Europe for almost 200 years. However, this form of monetary taxation is seldom,…

European Economic Review

Hierarchies and Entrepreneurship

Joacim Tåg, Thomas Åstebro and Peter Thompson

We establish a correlation between the hierarchical structure of a firm and the likelihood of business creation among its former employees, using a sample of 16 million observations of Swedish workers and a novel proxy for hierarchies based on occupation data.…

International Journal of Game Theory

Strategic Complementarities, Network Games and Endogenous Network Formation

Andreas Lagerås and David Seim

This paper investigates the role of strategic complementarities in the context of network games and network formation models. In the general model of static games on networks, we characterize conditions on the utility function that ensure the existence and uniqueness…

Journal of Money, Credit and Banking

Mixed Integer Programming Revealed Preference Tests of Utility Maximization and Weak Separability of Consumption, Leisure and Money

Per Hjertstrand, James L. Swofford and Gerald A. Whitney

Swofford and Whitney (1987, 1988, 1994) investigated the validity of two key assumptions underlying representative agent models of macroeconomics. These assumptions are utility maximization and weak separability. Using mixed integer programming, we check revealed…

Journal of the European Economic Association

Risk Aversion Relates to Cognitive Ability: Preferences or Noise?

Ola Andersson, Håkan J. Holm, Jean-Robert Tyran and Erik Wengström

Recent experimental studies suggest that risk aversion is negatively related to cognitive ability. In this paper we report evidence that this relation may be spurious. We recruit a large subject pool drawn from the general Danish population for our experiment. By…

Government and Opposition

Distrust in Utopia? Public Perceptions of Corruption and Political Support in Iceland before and after the Financial Crisis of 2008

Gissur Ó. Erlingsson, Jonas Linde and Richard Öhrvall

In the middle of the first decade of the twenty-first century Iceland was ranked as the least corrupt country in the world by Transparency International and enjoyed top positions in most comparative indices of governance and development. In 2008 the banking system…

Journal of Labor Economics

The Making of a Manager: Evidence from Military Officer Training

Erik Grönqvist and Erik Lindqvist

We show that officer training during the Swedish military service has a strong positive effect on the probability of attaining a managerial position later in life. The most intense type of officer training increases the probability of becoming a civilian manager by…

Industrial Relations: A Journal of Economy and Society

Employment Protection Reform, Enforcement in Collective Agreements and Worker Flows

Fredrik Heyman and Per Skedinger

We analyze a reform of notice periods for employer-initiated separations in Sweden, which reduced the notice periods for newly hired older workers substantially but implied minor or no changes in the advance notices for younger workers. The reform was initiated at…

Economics & Human Biology

Migrants, Health, and Happiness: Evidence that Health Assessments Travel with Migrants and Predict Well-Being

Martin Ljunge

Health assessments correlate with health outcomes and subjective well-being. Immigrants offer an opportunity to study persistent social influences on health where the social conditions are not endogenous to individual outcomes. This approach provides a clear…

Journal of Entrepreneurship and Public Policy

Two Sides to the Evasion: The Pirate Bay and the Interdependencies of Evasive Entrepreneurship

Niklas Elert, Magnus Henrekson and Joakim Wernberg

Purpose – Evasive entrepreneurs innovate by circumventing or disrupting existing formal institutional frameworks. Since such evasions rarely go unnoticed, they usually lead to responses from lawmakers and regulators. The paper aims to discuss this…

Economics Letters

Job Polarization, Job Tasks and the Role of Firms

Fredrik Heyman

Using detailed Swedish matched employer–employee data, I show evidence of within-firm job polarization. Applying a decomposition framework, I find that both within-firm and between-firm components are important for overall job polarization. Results also…

Review of International Economics

Global Engagement, Complex Tasks and the Distribution of Occupational Employment

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

We construct a task-based model of the firm's choice of occupational inputs to examine how that choice varies with greater global engagement. We assume that more complex tasks are more costly to complete. Within the structure of our model, firms skew employment…

Review of Austrian Economics

Does Belief in Objective Morality Lead to Coercion? An Analysis of the Arguments of Kelsen and Buchanan

Niclas Berggren

Two leading scholars of the 20th century – Hans Kelsen and James Buchanan – both suggested that belief in an objective morality entails a disparaging attitude towards political and individual freedom. The main point was similar: Why let people decide for…

Journal of Business Ethics

Macroeconomic Fluctuations as Sources of Luck in CEO Compensation

Hsin-Hui Chiu, Lars Oxelheim, Clas Wihlborg and Jianhua Zhang

Macroeconomic fluctuations in interest rates, exchange rates, and inflation can be considered sources of good or bad “luck” for corporate performance if management is unable to adjust operations to these fluctuations. Based on a sample of 2,091 US firms,…

International Journal of Industrial Organization

International Network Competition under National Regulation

Thomas Tangerås and Joacim Tåg

We extend the workhorse model of network competition to international calls. This model enables us to show that national regulatory authorities (NRAs) maximizing domestic welfare have incentives to increase termination rates above the social optimum to extract rent…

Asian Economic Papers

The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries

Cynthia J. Campbell, Rosita P. Chang, Jack C. De Jong Jr., Robert Doktor, Lars Oxelheim and Trond Randøy

This study examines the impact of the prevalence of long-term equity-based chief executive officer (CEO) compensation incentives on GDP growth, and we address the moderating role of individualist versus collectivist cultures on this relationship. We argue that…

Journal of Business Venturing

Creative Destruction and Productive Preemptive Acquisitions

Pehr-Johan Norbäck, Lars Persson and Roger Svensson

We develop a model of entrepreneurial innovation for entry and sale into oligopolies suitable for welfare analysis. We show that the expected consumer welfare can be higher under commercialization by sale than under commercialization by entry despite increased market…

Quarterly Journal of Economics

Wealth, Health, and Child Development: Evidence from Administrative Data on Swedish Lottery Players

David Cesarini, Erik Lindqvist, Robert Östling and Björn Wallace

We use administrative data on Swedish lottery players to estimate the causal impact of substantial wealth shocks on players’ own health and their children’s health and developmental outcomes. Our estimation sample is large, virtually free of attrition,…

Quarterly Journal of Political Science

Electoral Competition and Gender Differences in Political Careers

Olle Folke and Johanna Rickne

This paper analyzes the role of competition between political parties for the promotion and turnover of social minorities in party organizations. We collect extensive and reliable panel data for the career trajectories of all Swedish politicians in 290 municipal…

Small Business Economics

Evasive Entrepreneurship

Niklas Elert and Magnus Henrekson

We argue that evasive entrepreneurship is an important, although underrated, source of innovation, and provide the first systematic discussion of the concept. We define evasive entrepreneurship as profit-driven business activity in the market aimed at circumventing…

Journal of Institutional Economics

Does Social Trust Speed Up Reforms? The Case of Central-Bank Independence

Niclas Berggren, Sven-Olov Daunfeldt and Jörgen Hellström

Many countries have undertaken central-bank independence reforms, but the years of implementation differ. What explains such differences in timing? This is of interest more broadly, as it sheds light on factors that matter for the speed at which economic reforms come…

Journal of Applied Corporate Finance

Why FX Risk Management Is Broken – And What Boards Need to Know to Fix It

Håkan Jankensgård, Alf Alviniussen and Lars Oxelheim

This article provides a comprehensive critique of current corporate foreign exchange risk management (FXRM) practices. The authors characterize much of FXRM as a “legacy” activity, a set of outdated, often decentralized and “earnings-driven”…

Applied Economics Letters

Do the Poor Benefit from Globalization Regardless of Institutional Quality?

Andreas Bergh, Irina Mirkina and Therese Nilsson

Despite significant progress towards the Millennium goals, more than one billion people live on less than 1.25 US dollars per day. Previous research suggests that globalization stimulates poverty reduction, but does not investigate what role institutions play in this…

American Political Science Review

Gender Quotas and Women's Political Leadership

Diana Z. O'Brien and Johanna Rickne

Though more than 100 countries have adopted gender quotas, the effects of these reforms on women's political leadership are largely unknown. We exploit a natural experiment—a 50–50 quota imposed by the national board of the Swedish Social Democratic…

Oxford Handbook of the Economics of Networks

Key Players

Yves Zenou

In this chapter, we provide an overview of the literature on key players in networks. We first introduce the theoretical concept of the key player who is the agent that should be targeted by the planner so that, once removed, she will generate the highest level of…

Independent Review

Regime Uncertainty and the Great Recession: A Market-Process Approach

Wolf von Laer and Adam G. Martin

Uncertainty triggered by government policy may have played a large role in the U.S. economy’s slow recovery from the Great Recession. Whether or not it is the leading cause of the sluggishness, regime uncertainty is a powerful idea that adds nuance to the…

American Journal of Agricultural Economics

Competitive Pressure and Technology Adoption: Evidence from a Policy Reform in Western Canada

Shon Ferguson and M. Rose Olfert

We estimate the impact that removing a railway transportation subsidy has on the adoption of production technology for Western Canadian farms by using a unique combination of census and freight rate data. We exploit the large regional variation in these one-time…

Nordic Economic Policy Review

Ethnic Fractionalization and the Demand for Redistribution – Potential Implications for the Nordic Model

Johanna Möllerström

A distinctive feature of the Nordic model is that economic resources are redistributed between citizens to a high degree. Historically, the Nordic voters have expressed a higher demand for such redistribution than people in other parts of the world. This paper…

Nordic Economic Policy Review

The Future of Welfare Services: How Worried Should We Be about Baumol, Wagner and Ageing?

Andreas Bergh

Welfare services are an important part of the Nordic welfare states both financially and for welfare state redistribution. Baumol’s cost disease, Wagner’s law, and population ageing are often said to bring challenges for the future provision of welfare…

Scandinavian Journal of Public Administration

Experiences of Introducing a Quasi-Market in Swedish Primary Care: Fulfilment of Overall Objectives and Assessment of Provider Activities

Anna Häger Glenngård

Health care as any other public service is subject to many potentially conflicting objectives and many actors. Over time, the traditional goal of health care systems of distributive justice has been accompanied by other objectives and health care reforms have…

Journal of the European Economic Association

The Limits of Career Concerns in Federalism: Evidence from China

Petra Persson and Ekaterina Zhuravskaya

Performance-based promotion schemes in administrative hierarchies have limitations. Chinese provincial leaders, despite facing strong career concerns, make different policy decisions depending on their career backgrounds. Provincial party secretaries who have risen…

British Journal of Political Science

Mechanical and Psychological Effects of Electoral Reform

Jon H. Fiva and Olle Folke

To understand how electoral reform affects political outcomes, one needs to assess its total effect, incorporating how the reform affects the outcomes given the political status quo (the mechanical effects) and the additional reactions of political agents (the…

Foundations and Trends in Entrepreneurship

Owner-Level Taxes and Business Activity

Magnus Henrekson and Tino Sanandaji

In some classes of models, taxes at the owner level are "neutral" and have no effect on firm activity. However, this tax neutrality is sensitive to assumptions and no longer holds in more complex models. We review recent research that incorporates greater…

Journal of Economic Surveys

Government Size and Growth: A Rejoinder

Andreas Bergh and Magnus Henrekson

In our 2011 survey of the literature in the Journal of Economic Surveys on the effect of government size on economic growth in wealthy countries we find a relatively consistent pattern: An increase in government size by 10 percentage points is associated with…

International Tax and Public Finance

Government Consumption Smoothing in a Balanced Budget Regime

Lovisa Persson

I investigate government consumption smoothing (sensitivity) under a balanced budget rule in Swedish municipalities. In general, I find Swedish municipalities to be highly consumption sensitive. Municipalities consume 87.6 % out of predicted current revenues in the…

Journal of Development Economics

Can Selective Immigration Policies Reduce Migrants' Quality?

Simone Bertoli, Vianney Dequiedt and Yves Zenou

Destination countries can adopt selective immigration policies to improve migrants' quality. Screening potential migrants on the basis of observable characteristics also influences their self-selection on unobservables. We propose a model that analyzes the…

Journal of Environmental Economics and Management

Can Indifference Make the World Greener?

Johan Egebark and Mathias Ekström

We conducted a natural field experiment to evaluate two resource conservation programs. One intervention consisted of a moral appeal message asking university employees to cut back on printing in general, and to use double-sided printing whenever possible. The other…

Essays in Public Sector Entrepreneurship

An Innovation Policy Framework: Bridging the Gap Between Industrial Dynamics and Growth

Pontus Braunerhjelm and Magnus Henrekson

Innovation is increasingly considered the key to elevating prosperity and securing sustainable long-term growth. The last few decades have also witnessed a refi nement of previous growth models to include investments in education by individuals and R&D by fi rms.…


An Extended N-Player Network Game and Simulation of Four Investment Strategies on a Complex Innovation Network

Wen Zhou, Nikita Koptyug, Shutao Ye, Yifan Jia and Xiaolong Lu

As computer science and complex network theory develop, non-cooperative games and their formation and application on complex networks have been important research topics. In the inter-firm innovation network, it is a typical game behavior for firms to invest in their…

Industrial and Corporate Change

Are High-Growth Firms Overrepresented in High-Tech Industries?

Sven-Olov Daunfeldt, Niklas Elert and Dan Johansson

It is frequently argued that policymakers should target high-tech firms, i.e., firms with high R&D intensity, because such firms are considered more innovative and therefore potential fast-growers. This argument relies on the assumption that the association among…

Energy Economics

Market-Specific News and Its Impact on Forward Premia on Electricity Markets

Ewa Lazarczyk

This paper studies the impact of market-specific news on the short-term forward premia on the Nordic electricity market. I show that the short-term premia between the day-ahead and intra-day electricity prices on the Nordic market can be partly explained by the…

World Economy

EU Trade Preferences and Export Diversification

Maria Persson and Fredrik Wilhelmsson

Since at least the 1960s, the European Union (EU) has offered various kinds of non-reciprocal trade preferences for developing countries. Originally, these trade preferences had at least two policy goals: (i) to increase export volumes for developing countries and…

Management Science

Deciding for Others Reduces Loss Aversion

Ola Andersson, Håkan J. Holm, Jean-Robert Tyran and Erik Wengström

We study risk taking on behalf of others, both when choices involve losses and when they do not. A large-scale incentivized experiment with subjects randomly drawn from the Danish population is conducted. We find that deciding for others reduces loss aversion. When…

Social Networks

Racial Identity and Education in Social Networks

Eleonora Patacchini and Yves Zenou

We investigate identity issues to explain differences in school performance between students of different races. Using a unique dataset of friendship relationships between students in the US, we show that friendship formation can be taken as a measure of racial…

Scandinavian Journal of Economics

Sickness Absence and Local Benefit Cultures

Assar Lindbeck, Mårten Palme and Mats Persson

In many countries, sickness absence financed by generous insurance benefits is an important concern in the policy debate. There are strong variations in absence behavior among local geographical areas. Such variations are difficult to explain in terms of observable…

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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