Published articles in English 2017

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Journal of Mechanism and Institution Design

Timing and Presentation Effects in Sequential Auctions

Ola Andersson and Tommy Andersson

This paper investigates two hitherto unexplored dimensions inherent in online sequential auctions, namely, how the time elapsed between the end of an auction and the end of the next one and the order of presentation on the website affect prices. Using a…


American Economic Review

The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries

David Cesarini, Erik Lindqvist, Matthew J. Notowidigdo and Robert Östling

We study the effect of wealth on labor supply using the randomized assignment of monetary prizes in a large sample of Swedish lottery players. Winning a lottery prize modestly reduces earnings, with the reduction being immediate, persistent, and quite similar by age,…


American Economic Journal: Economic Policy

Behavioral Responses to Wealth Taxes: Evidence from Sweden

David Seim

This paper provides an empirical assessment of an annual wealth tax. Using Swedish administrative data, I estimate net-of-tax-rate elasticities of taxable wealth in the range [0.09, 0.27]. Cross-checking self-reported assets against asset data unavailable to the tax…


Journal of Regulatory Economics

Price Mimicking under Cost-of-Service Regulation: The Swedish Water Sector

Erik Lundin

This study provides an empirical test of price mimicking among publicly owned water utilities. Using a fixed effects spatial Durbin model with data from Swedish municipalities during 2002–2012, I estimate the elasticity of the own relative to neighbors’…


Small Business Economics

Hernando de Soto: Recipient of the 2017 Global Award for Entrepreneurship Research

Martin Andersson and Daniel Waldenström

The 2017 Global Award for Entrepreneurship Research is given to Hernando de Soto, president of the Institute for Liberty and Democracy (ILD) in Lima, Peru. Over the last 30 years, Hernando de Soto has been a world-leading intellectual engaged in academic and…


Journal of Entrepreneurship and Public Policy

Economic Freedom and Veto Players Jointly Affect Entrepreneurship

Christian Bjørnskov and Jacob Lihn

Purpose – The purpose of this paper is to explore how the strength of political veto players affects the long-run credibility of economic institutions and how they jointly affect entrepreneurial activity.

Design/methodology/approach – The…


Tourism Economics

Innovation in the Hospitality Industry: Firm or Location?

Mikaela Backman, Johan Klaesson and Özge Öner

The hospitality industry is a rapidly growing revenue generator in many countries and is becoming economically important for generating employment and for integrating of immigrants into the labor market. As an industry where firms face fierce competition, it is…


Journal of Economic Behavior & Organization

House Price Responses to a National Property Tax Reform

Mikael Elinder and Lovisa Persson

We show that house prices in general did not respond to a substantial cut in the national property tax in Sweden. The estimates are based on rich register data covering more than 100,000 sales over a time period of two and a half years. Because the Swedish property…


IPPR Progressive Review

Reform of the Welfare State or Dreams about Universal Basic Income?

Mårten Blix

What does the future hold for the welfare state? An assessment of its ongoing viability in the years to come, and challenge to the idea that it would – or should – be replaced in the foreseeable future by a universal basic income.


Quarterly Journal of Economics

Who Becomes A Politician?

Ernesto dal Bó, Frederico Finan, Olle Folke, Torsten Persson and Johanna Rickne

Can a democracy attract competent leaders, while attaining broad representation? Economic models suggest that free-riding incentives and lower opportunity costs give the less competent a comparative advantage at entering political life. Moreover, if elites have more…


Scandinavian Journal of Economics

Direct and Cross Effects of Employment Protection: The Case of Parental Childcare

Martin Olsson

I examine whether employment protection affects the willingness of working parents to provide childcare. Using a reform that made it easier for employers to dismiss workers in small firms, I find that softer employment protection reduces the use of temporary parental…


Economic Journal

Dynastic Political Rents? Economic Benefits to Relatives of Top Politicians

Olle Folke, Torsten Persson and Johanna Rickne

We exploit close elections in Swedish municipalities to test whether relatives of politicians who become mayors obtain economic benefits. We find no benefits for the siblings of new mayors, but the average earnings of children of newly appointed mayors rise by about…


Economic Journal

Why Entrepreneurs Choose Risky R&D Projects – But Still Not Risky Enough

Erika Färnstrand Damsgaard, Pehr-Johan Norbäck, Lars Persson and Helder Vasconcelos

This article examines how entrepreneurs and incumbents differ in their R&D strategies. We show that entrepreneurs have incentives to choose projects with a higher risk and a higher potential in order to reduce expected entry costs. If products are not too…


Economic Journal

Pro-Competitive Rationing in Multi-Unit Auctions

Pär Holmberg

In multi-unit auctions, it is necessary to specify rationing rules to break ties between multiple marginal bids. The standard approach is to ration marginal bids proportionally. This article shows how bidding can be made more competitive – and the auctioneer…


Journal of Human Resources

The Intergenerational Transmission of Cognitive and Noncognitive Abilities

Erik Grönqvist, Björn Öckert and Jonas Vlachos

We study the intergenerational transmission of cognitive and noncognitive abilities using population data and correct for measurement error in abilities using two sets of instruments. The results show that previous estimates are biased downward and that once…


Journal of the European Economic Association

Infant Health and Longevity: Evidence from A Historical Intervention in Sweden

Sonia Bhalotra, Martin Karlsson and Therese Nilsson

This paper investigates the potential of an infant intervention to improve life expectancy, contributing to emerging interest in the early life origins of chronic disease. We track individuals from birth to death, and are able to identify age and cause of death. The…


Journal of Business Venturing Insights

Gross, Net, and New Job Creation by Entrepreneurs

Thomas Åstebro and Joacim Tåg

Using a dataset with over 24 million year-employment observations and the universe of more than 230,000 entries into entrepreneurship in one economy we analyze the gross (including the founders), net (excluding the founders), and new (jobs to the former unemployed or…


European Economic Review

Global Engagement and the Occupational Structure of Firms

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

Global engagement can impact firm organization and the occupations firms need. We use a simple task-based model of the firm's choice of occupational inputs to examine how that choice varies with global engagement. We reveal a robust and causal relationship…


American Economic Review

Gender Quotas and the Crisis of the Mediocre Man: Theory and Evidence from Sweden

Timothy Besley, Olle Folke, Torsten Persson and Johanna Rickne

We develop a model where party leaders choose the competence of politicians on the ballot to trade off electoral success against their own survival. The predicted correlation between the competence of party leaders and followers is strongly supported in Swedish data.…


Public Choice

More Politicians, More Corruption: Evidence from Swedish Municipalities

Andreas Bergh, Günther Fink and Richard Öhrvall

In the literature on political economy and public choice, it is typically assumed that government size correlates positively with public corruption. The empirical literature, however, is inconclusive, owing to both measurement problems and endogeneity. This paper…


Foundations and Trends in Entrepreneurship

Entrepreneurship and Institutions: A Bidirectional Relationship

Niklas Elert and Magnus Henrekson

The interplay between entrepreneurship and institutions is crucial for economic development; however, the view that institutions determine the extent to which entrepreneurial activity is productive is only part of the story. We argue that causality is bidirectional,…


Labour Economics

The Impact of Upper-Secondary Voucher School Attendance on Student Achievement. Swedish Evidence using External and Internal Evaluations

Björn Tyrefors Hinnerich and Jonas Vlachos

Sweden has a school voucher system with universal coverage and full acceptance of corporate providers. Using a value added approach, we find that students at upper-secondary voucher schools on average score 0.06 standard deviations lower on externally graded…


The Indonesian Economy: Trade and Industrial Policies

Foreign Direct Investment and Value Added in Indonesia

Fredrik Sjöholm

Foreign Direct Investment (FDI) has increased in importance over the last decades, globally as well as in Indonesia. We examine how such inflows of FDI affects value added in Indonesia. The effect is positive: foreign firms generate relatively high levels of value…


Geographies of Growth: Innovations, Networks and Collaborations

Introduction

Martin Andersson, Lina Bjerke and Charles Karlsson

Today we can observe an increasing spatial divide as some large urban regions and many more medium-sized and small regions face growing problems such as decreasing labour demand, increasing unemployment and an ageing population. In view of these trends, this book…


WTO Dispute Settlement: Time to Take Stock

Five Scenarios in Search for a Director. WTO Judges, Their Terms of References, Scope of Competence, Remedies they Proscribe, and the Consequences for the Addressees

Louise Johannesson and Petros C. Mavroidis

The WTO has been lauded for its unique dispute settlement system. Its uniqueness lies primarily in that it is the most comprehensive “compulsory third party” adjudication regime in international relations. No other regime of this breadth exists in state…


International Journal of Production Economics

Framing Maturity Based on Sustainable Operations Management Principles

Carla Machado, Edison Pinheiro de Lima, Sergio da Costa, Jannis Angelis and Rosana Mattioda

Business sustainability integration is a complex task and strongly linked to operations management. In fact, sustainability based approaches demand operations management boundaries' expansion, creation and integration of new performance goals into traditional…


Experimental Economics

Subliminal Influence on Generosity

Ola Andersson, Topi Miettinen, Kaisa Hytönen, Magnus Johannesson and Ute Stephan

We experimentally subliminally prime subjects prior to charity donation decisions by showing words that have connotations of pro-social values for a very brief time (17 ms). Our main finding is that, compared to a baseline condition, the pro-social prime increases…


European Journal of Political Economy

Are OECD Policy Recommendations for Public Sector Reform Biased against Welfare States? Evidence from a New Database

Andreas Bergh, Margareta Dackehag and Martin Rode

Policy advice by the OECD has long been at the heart of academic debates on welfare state reform, with frequent claims questioning the ideological orientation of recommendations. This paper constructs an indicator of perceived reform need for 24 countries,…


Social Policy & Administration

Inequality in Social Insurance Participation and Generosity: Do Firm Characteristics Matter?

Qin Gao and Johanna Rickne

Income inequality in China has been much documented and debated. However, one important aspect of income inequality – social insurance inequality – has been largely understudied. We use a large national panel of firm data to examine the possible influence…


Structural Change and Economic Dynamics

Swedish Lessons: How Important are ICT and R&D to Economic Growth?

Harald Edquist and Magnus Henrekson

We investigate to what extent ICT and R&D capital are associated with value added growth in the Swedish business sector. By estimating output elasticities based on data for 47 different industries for the period 1993–2012 we show that ICT and R&D…


Journal of Industrial Economics

Productivity Dynamics and the Role of ‘Big-Box’ Entrants in Retailing

Florin Maican and Matilda Orth

We use a dynamic model to measure the impact of the entry of large stores on incumbents’ productivity separate from demand while accounting for local markets and the endogeneity of entry. Using data on all retail food stores in Sweden, we find that…


Southern Economic Journal

The Market-Promoting and Market-Preserving Role of Social Trust in Reforms of Policies and Institutions

Niclas Berggren and Christian Bjørnskov

Social trust has been identified as a catalyst for reforms. We take the literature further in two ways. First, we analyze mechanisms through which social trust enables liberalizing reforms—by overcoming obstacles in the political process (stemming from…


Journal of World Trade

The WTO Dispute Settlement System 1995-2016: A Data Set and Its Descriptive Statistics

Louise Johannesson and Petros C. Mavroidis

In this article, we provide some descriptive statistics of the first twenty years of the WTO (World Trade Organization) dispute settlement., that we have extracted from the data set that we have put together, and made publicly available (http://globalgovernancepro…


Scandinavian Journal of Economics

Segregation in Friendship Networks

Joan de Martí and Yves Zenou

We analyze a network-formation model where agents belong to different communities. Both individual benefits and costs depend on direct as well as indirect connections. Benefits of an indirect connection decrease with distance in the network, while the cost of a link…


Review of World Economics

Cross-Border Mergers & Acquisitions with Financially Constrained Owners

Aron Berg, Pehr-Johan Norbäck and Lars Persson

Mergers give acquirers control over the assets of the merged entity and give sellers control over financial assets. We propose a cross-border merger model with home biased financially constrained owners in which the subsequent investments of the buyer and the seller…


SAGE Open Medicine

Does Increased Standardisation in Health Care Mean Less Responsiveness Towards Individual Patients’ Expectations? A Register-Based Study in Swedish Primary Care

Anna Häger Glenngård and Anders Anell

Objective: We explore whether standardisation in health care based on evidence on group level and a public health perspective is in conflict with responsiveness towards individual patient’s expectations in Swedish primary care.

Methods: Using…


Journal of Economics & Management Strategy

Bailing on the Car That Was Not Bailed Out: Bounding Consumer Reactions to Financial Distress

Christian Huse and Nikita Koptyug

We examine how consumers react to the financial distress of durable goods manufacturers by studying the Swedish new car market. We employ a difference-in-differences matching methodology whereby we compare sales of carmaker Saab with those of a control group of…


Social Indicators Research

What Aspects of Society Matter for the Quality of Life of a Minority? Global Evidence from the New Gay Happiness Index

Niclas Berggren, Christian Bjørnskov and Therese Nilsson

There is great variation in views on and treatment of minorities such as gay men across the world. We are the first to pinpoint what features of societies are beneficial to gay men’s quality of life by using a unique new cross-country dataset covering 110…


Nordic Tax Journal

Taxation of Swedish Firm Owners: The Great Reversal from the 1970s to the 2010s

Magnus Henrekson

By the late 1960s, real effective taxation of income from individual firm ownership in Sweden approached 100 percent. A series of tax reforms has reversed this situation. This paper (1) elucidates the thinking behind the vision of creating a largely market-based…


Scandinavian Economic History Review

The Search for Seignorage: Periodic Re-Coinage in Medieval Sweden

Roger Svensson

A specific monetary tax − called periodic re-coinage − was applied for almost 200 years in large parts of medieval Europe. Old coins were frequently declared invalid and exchanged for new ones based on publicly announced dates and exchange fees. A…


Journal of Labor Economics

Private Equity, Layoffs, and Job Polarization

Martin Olsson and Joacim Tåg

Private equity firms are often criticized for laying off workers, but the evidence on who loses their jobs and why is scarce. This paper argues that explanations for job polarization also explain layoffs after private equity buyouts. Buyouts reduce agency problems,…


Contemporary Economic Policy

Growth, Inequality and Economic Freedom: Evidence from the U.S. States

Christian Bjørnskov

This article returns to the discussion of how income inequality affects economic growth. The main argument of the article is that economic freedom is likely to mediate the association between inequality and growth. In a panel of 300 observations from six 5-year…


Experimental Economics

The Impact of Stress on Tournament Entry

Thomas Buser, Anna Dreber and Johanna Möllerström

Individual willingness to enter competitive environments predicts career choices and labor market outcomes. Meanwhile, many people experience competitive contexts as stressful. We use two laboratory experiments to investigate whether factors related to stress can…


Journal of Health Economics

Retirement Blues

Gabriel Heller Sahlgren

This paper analyses the short- and longer-term effects of retirement on mental health in ten European countries. It exploits thresholds created by state pension ages in an individual-fixed effects instrumental-variable set-up, borrowing intuitions from the…


Mathematical Social Sciences

Local and Consistent Centrality Measures in Parameterized Networks

Vianney Dequiedt and Yves Zenou

We propose an axiomatic approach to characterize centrality measures for which the centrality of an agent is recursively related to the centralities of the agents she is connected to. This includes the Katz–Bonacich and the eigenvector centrality. The core of…


Migration Letters

Explaining the Labor Market Gaps between Immigrants and Natives in the OECD

Andreas Bergh

In most OECD-countries immigrants have lower employment and higher unemployment than natives. The gap in labor market outcomes is larger in countries with more immigrant friendly attitudes. This paper suggests that in countries where labor market institutions are…


Renewable Energy

Wind Power Volatility and its Impact on Production Failures in the Nordic Electricity Market

Sara Fogelberg and Ewa Lazarczyk

Wind power generation of electricity has gained popular support because of its low environmental impact and its low costs relative to other renewable energy sources. However, concerns have been raised in the power sector that wind power generation will come at the…


European Economic Review

Cross-Border Acquisitions and restructuring: Multinational Enterprises and Private Equity Firms

Selva Bahar Baziki, Pehr-Johan Norbäck, Lars Persson and Joacim Tåg

An increasingly large share of cross-border acquisitions are undertaken by private equity-firms (PE-firms) and not by traditional multinational enterprises (MNEs). We propose a model of cross-border acquisitions in which MNEs and PE-firms compete over domestic assets…


Review of Economics and Statistics

Richer (and Holier) Than Thou? The Effect of Relative Income Improvements on Demand for Redistribution

Mounir Karadja, Johanna Möllerstrom and David Seim

We use a tailor-made survey on a Swedish sample to investigate how individuals' relative income affects their demand for redistribution. We first document that a majority misperceive their position in the income distribution and believe that they are poorer,…


Management Science

Does Gender Diversity Promote Nonconformity?

Makan Amini, Mathias Ekström, Tore Ellingsen, Magnus Johannesson and Fredrik Strömsten

Failure to express minority views may distort the behavior of company boards, committees, juries, and other decision-making bodies. Devising a new experimental procedure to measure such conformity in a judgment task, we compare the degree of conformity in groups with…


Scandinavian Journal of Economics

Revisiting the Relationship between Ethnic Diversity and Preferences for Redistribution: Reply

Matz Dahlberg, Karin Edmark and Heléne Berg

Here, we respond to the comments raised by Nekby and Pettersson-Lidbom on our paper Dahlberg et al. (2012, Journal of Political Economy 120, 41–76). We argue that our estimates are internally valid, but we acknowledge that the external validity could have been…


International Rewiew of Entrepreneurship

Status Quo Institutions and the Benefits of Institutional Deviations

Niklas Elert and Magnus Henrekson

The purpose of this paper is to nuance the widely held view that well-functioning institutions are the ultimate prerequisite for innovation and entrepreneurship. This is done by putting the spotlight on the role that formal and informal institutions have in serving…


Journal of Entrepreneurship and Public Policy

The Entrepreneurial Rent: The Value of and Compensation for Entrepreneurship

Magnus Henrekson and Mikael Stenkula

Purpose – The purpose of this paper is to show that entrepreneurship can be fruitfully analyzed by positing that entrepreneurs are searching for rates of return exceeding the risk-adjusted market rate of return, i.e., they try to create or discover economic…


Journal of Business Ethics

Resistance to Change in the Corporate Elite: Female Directors’ Appointments onto Nordic Boards

Aleksandra Gregorič, Lars Oxelheim, Trond Randøy and Steen Thomsen

In this empirical study, we investigate the variation in firms’ response to institutional pressure for gender-balanced boards, focusing specifically on the preservation of prevailing practices of director selection and its impact on the representation of women…


Modernizing the Public Sector: Scandinavian Perspectives

Introducing Quasi-Markets in Primary Care: The Swedish Experience

Anna Häger Glenngård and Anders Anell

The Swedish experience of introducing quasi-markets in primary care is discussed with respect to the identified objectives of primary care. Empirical studies suggest that objectives related to general accessibility have been met. There is more limited knowledge about…


Modernizing the Public Sector: Scandinavian Perspectives

Market Solutions

Fredrik Andersson

The reliance on market solutions by the Swedish public sector has increased significantly in recent decades. The Swedish example is characterized by an openness to market solutions in many public-sector activities and by a mix of procurement arrangements and…


Journal of Economic Literature

The Economic Consequences of Social-Network Structure

Matthew O. Jackson, Brian W. Rogers and Yves Zenou

We survey the literature on the economic consequences of the structure of social networks. We develop a taxonomy of "macro" and "micro" characteristics of social-interaction networks and discuss both the theoretical and empirical findings…


Social Economics: Current and Emerging Avenues

Cultural Determinants of Gender Roles: Pragmatism as an Underpinning Attitude toward Gender Equality among Children of Immigrants

Martin Ljunge


Journal of Economic History

Wealth-Income Ratios in a Small, Developing Economy: Sweden, 1810–2014

Daniel Waldenström

This study uses new data on Swedish national wealth over the last two hundred years to examine whether the patterns in wealth-income ratios found by Piketty and Zucman (2014) extend to small and less developed economies. The findings reveal both similarities and…


Journal of Economic Behavior & Organization

Heterogeneous Peer Effects in Education

Eleonora Patacchini, Edoardo Rainone and Yves Zenou

We investigate whether, how, and why individual education attainment depends on the educational attainment of schoolmates. Specifically, using longitudinal data on students and their friends in a nationally representative set of US schools, we consider the influence…


Telecommunications Policy

Do R&D and ICT Affect Total Factor Productivity Growth Differently?

Harald Edquist and Magnus Henrekson

We analyze the effect of ICT and R&D on total factor productivity (TFP) growth across different industries in Sweden. R&D alone is significantly associated with contemporaneous TFP growth, thus exhibiting indirect effects. Although there is no significant…


Leisure Studies

Location of Leisure: The New Economic Geography of Leisure Services

Özge Öner and Johan Klaesson

Understanding more about the geographic location of leisure services is an important quest for research. For a long time now in developed economies, almost all employment growth is occurring within the service sector. In this sector, leisure services are fast…


Spatial Economic Analysis

Retail City: The Relationship between Place Attractiveness and Accessibility to Shops

Özge Öner

Retail city: the relationship between place attractiveness and accessibility to shops. Spatial Economic Analysis. This paper explores the role of retailers as an urban amenity. Using data for Swedish rural and city municipalities for 2002–08,…


European Economic Review

Intergenerational Correlation and Social Interactions in Education

Sebastian Bervoets and Yves Zenou

We propose a dynastic model where individuals are born into an educated or uneducated environment that they inherit from their parents. We study the impact of social interactions on the correlation in parent-child educational status, independently of any parent-child…


Management Science

Person–Organization Fit and Incentives: A Causal Test

Ola Andersson, Marieke Huysentruyt, Topi Miettinen and Ute Stephan

We investigate the effects of organizational culture and personal values on performance under individual and team contest incentives. We develop a model of regard for others and in-group favoritism that predicts interaction effects between organizational values and…


Journal of Public Economics

The Right Look: Conservative Politicians Look Better and Voters Reward It

Niclas Berggren, Henrik Jordahl and Panu Poutvaara

Since good-looking politicians win more votes, a beauty advantage for politicians on the left or on the right is bound to have political consequences. We show that politicians on the right look more beautiful in Europe, the United States and Australia. Our…


Journal of Air Transport Management

Managing Turnaround Performance through Collaborative Decision Making

Simon Okwir, Pernilla Ulfvengren, Jannis Angelis, Felipe Ruiz and Yilsy Maria Núñez Guerrero

The purpose of this paper is to explore turnaround performance as a resultant from both Collaborative Decision Making (CDM) processes and collaborative measures. This paper presents how CDM operates in the Turnaround Process (TAP) to propose a new method for managing…


Journal of Urban Economics

The Role of Social Networks in Cultural Assimilation

Thierry Verdier and Yves Zenou

We develop a model where, in the first stage, minority individuals have to decide whether or not they want to assimilate to the majority culture while, in the second stage, all individuals (both from the majority and the minority group) embedded in a network have to…

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

Events

Seminars organized by IFN

 

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.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

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