Published articles in English 2019

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ILR Review

Academic Entrepreneurship: The Bayh-Dole Act versus the Professor’s Privilege

Thomas Åstebro, Serguey Braguinsky, Pontus Braunerhjelm and Anders Broström

Is the Bayh-Dole intellectual property regime associated with more and better academic entrepreneurship than the Professor’s Privilege regime? The authors examine data on US PhDs in the natural sciences, engineering, and medical fields who became entrepreneurs…

The Digital Transformation of Labor

Polarization, Tax Revenue and the Welfare State: Digital Disruption or Still Standing Strong?

Mårten Blix

Some changes in society are significant enough to warrant a specific name. Digitalization is one of those and is sometimes described as the third industrial revolution. What can we learn from comparing the present situation to the state of society at the outset of…

Review of Austrian Economics

The Collaborative Innovation Bloc: A Reply to our Commentators

Niklas Elert and Magnus Henrekson

We are grateful for the comments to our article, and for the opportunity to respond to them. In our original contribution, we argued that the application of the EOE perspective could help make Austrian economics more concrete, relevant and persuasive, especially…

Review of Austrian Economics

The Collaborative Innovation Bloc: A New Mission for Austrian Economics

Niklas Elert and Magnus Henrekson

We argue that scholars in the Austrian tradition of economics should incorporate the notion of a collaborative innovation bloc into their study of spontaneous market orders. We demonstrate how successful entrepreneurship depends on an innovation bloc of this kind, a…

FinanzArchiv/Public Finance Analysis

Refugee Immigration and Public Sector Finances: Evidence from Sweden

Mats Hammarstedt and Lina Aldén

We present an analysis of how refugee immigration affects public-sector finances during the refugees' first years of stay in Sweden. Two different measures are presented. First, public-sector revenues are related to public-sector costs under the assumption that…

Travail et Emploi (Special issue covering a Paris workshop on job polarization)

Globalization, Job Tasks and the Demand for Different Occupations

Fredrik Heyman and Fredrik Sjöholm

Globalization has increased in recent decades, resulting in structural changes of production and labor demand. This paper examines how the increased global engagement of firms affects the structure of the workforce. We find that the aggregate distribution of…

Journal of Institutional Economics

Roots of Tolerance among Second-Generation Immigrants

Niclas Berggren, Martin Ljunge and Therese Nilsson

Tolerance – respecting individual choice and differences among people – is a prominent feature of modern European culture. That immigrants embrace this kind of liberal value is arguably important for integration, a central policy goal. We provide a…

Digital Transformation and Public Services: Societal Impacts in Sweden and Beyond

Telemedicine and the Welfare State: The Swedish Experience

Mårten Blix and Johanna Jeansson

Health care in Sweden finds itself at a crossroads as regards digitalization. In this chapter, we will focus on one issue in particular that is causing consternation among primary care physicians: the rapid increase in popularity of telemedicine. Via smartphone apps,…

Political Studies

Crisis, Ideology, and Interventionist Policy Ratchets

Christian Bjørnskov and Martin Rode

Proper government reaction to economic crisis has long been a central element of public policy debate and is experiencing a revival after the Great Recession of 2008. Previous studies argue on theoretical and empirical grounds that crises may lead to more…

ILR Review

Experience and Entrepreneurship: A Career Transition Perspective

Christopher I. Rider, Peter Thompson, Aleksandra Kacperczyk and Joacim Tåg

The authors cast entrepreneurship as one of three career choices—remaining with one’s employer, changing employers, or engaging in entrepreneurship—and theorize how the likelihood of entrepreneurship evolves over one’s career. They empirically…

Small Business Economics

Entrepreneurial Experimentation: A Key Function in Systems of Innovation

Åsa Lindholm-Dahlstrand, Martin Andersson and Bo Carlsson

The literature on innovation systems focuses on the supply side (the creation of technology) rather than on how innovations are converted into economic activity and growth via the market (the demand side, and the interface between supply and demand). One implication…

Small Business Economics

Boyan Jovanovic: Recipient of the 2019 Global Award for Entrepreneurship Research

Maria Minniti, Martin Andersson, Pontus Braunerhjelm, Frédéric Delmar, Annika Rickne, Karin Thorburn, Karl Wennberg and Mikael Stenkula

The 2019 Global Award for Entrepreneurship Research has been awarded to Professor Boyan Jovanovic at New York University in the USA. Boyan Jovanovic has developed pioneering research that advances our understanding of the competitive dynamics between incumbent firms…

Journal of Institutional Economics

“Post-Truth” Schooling and Marketized Education: Explaining the Decline in Sweden’s School Quality

Magnus Henrekson and Johan Wennström

The Swedish school system suffers from profound problems with teacher recruitment and retention, knowledge decline, and grade inflation. Absenteeism is high, and psychiatric disorders have risen sharply among Swedish pupils. In this pioneering analysis of the…

Applied Economics

Gender Differences in Optimism

Carl Magnus Bjuggren and Niklas Elert

This article examines gender differences in optimism about the economy. We measure optimism using Swedish survey data in which respondents stated their beliefs about the country’s future economic situation. We argue that this measure of optimism is preferable…

World Bank Research Observer

The Turnaround of the Swedish Economy: Lessons from Large Business Sector Reforms

Fredrik Heyman, Pehr-Johan Norbäck and Lars Persson

How can a country improve productivity growth in its business sector and reach its growth potential? Sweden during the 1970–2010 period can serve as an example to help other countries understand how to efficiently reform a business sector. In the 1990s, Sweden…

The European Union in a Changing World Order: Interdisciplinary European Studies

The European Union in a Changing World Order: What Is at Stake?

Antonina Bakardjieva Engelbrekt, Niklas Bremberg, Anna Michalski and Lars Oxelheim

This introductory chapter aims to shed light on how tightly the EU and the liberal international order are entwined and discuss the likely impact on the EU of a changing and, most likely, less liberal world order. The chapter discusses the concept of order in…

Journal of Financial Stability

Revealed Preference Tests of Indirect and Homothetic Weak Separability of Financial Assets, Consumption and Leisure

Per Hjertstrand and James Swofford

Hjertstrand et al. (2016) recently tested weak separability of the direct utility function using U.S. data on consumption goods, leisure, financial and monetary assets. This paper investigates different forms of weak separability. While weak separability of the…

Journal of Management Studies

The Context of Entrepreneurial Judgment: Organizations, Markets, and Institutions

Nicolai J. Foss, Peter G. Klein and Christian Bjørnskov

The economics and management literatures pay increasing attention to the technological, competitive, and institutional environment for entrepreneurship. However, less is known about how context influences the judgment of entrepreneurs. Focusing on the emerging…

Public Integrity

Municipally Owned Enterprises as Danger Zones for Corruption? How Politicians Having Feet in Two Camps May Undermine Conditions for Accountability

Andreas Bergh, Gissur Erlingsson, Anders Gustafsson and Emanuel Wittberg

The market-inspired reforms of New Public Management have been particularly pronounced in Swedish local government. Notably, municipally owned enterprises (MOEs) have rapidly grown in numbers. Principal-agent theory gives rise to the hypothesis that the massive…

Journal of Political Economy

Exit, Voice and Political Change: Evidence from Swedish Mass Migration to the United States

Mounir Karadja and Erik Prawitz

We study the political effects of mass emigration to the United States in the nineteenth century using data from Sweden. To instrument for total emigration over several decades, we exploit severe local frost shocks that sparked an initial wave of emigration,…

Journal of Institutional Economics

Do Voters Dislike Liberalizing Reforms? New Evidence Using Data on Satisfaction with Democracy

Niclas Berggren and Christian Bjørnskov

Since the early 1980s a wave of liberalizing reforms has swept over the world. Using panel data from 30 European countries in the period 1993–2015, we test the hypothesis that such reforms have led to voter dissatisfaction with democracy, since, it is argued,…

Procedia CIRP

Reviewing Digital Manufacturing Concept in the Industry 4.0 Paradigm

Elias Hans Dener Ribeiro da Silva, Ana Carolina Shinohara, Edson Pinheiro de Lima, Jannis Angelis and Carla Gonçalves Machado

Digitalization of manufacturing is once again on the industry application research agenda and Digital Manufacturing plays a fundamental role in this process. However, there is a lack of commonality in the literature about the purpose of Digital Manufacturing. The…

Procedia Manufacturing

In Pursuit of Digital Manufacturing

Elias Hans Dener Ribeiro da Silva, Jannis Angelis and Edson Pinheiro de Lima

Companies are adopting several new technologies that form the pillars of Industry 4.0 production framework, of which Digital Manufacturing (DM) stands out by combining conventional manufacturing technologies with digital techniques. These are used to assist in the…

Disrupted Economic Relationships. Disasters, Sanctions, Dissolutions

Exploring the Long-Term Evolution of Trade Survival

Wolfgang Hess and Maria Persson

Journal of Industrial Economics

Real-time versus Day-ahead Market Power in a Hydro-based Electricity Market

Thomas Tangerås and Johannes Mauritzen

This paper develops a theoretical framework to analyze the link between real‐time and day‐ahead competition in a hydro‐based wholesale electricity market. Predictions of the model are tested on a detailed data set of trades and prices from the Nordic power exchange,…

Nordic Economic Policy Review 2019: Climate Policies in the Nordic Countries

Climate Policies in the Nordics

Lars Calmfors and John Hassler

Climate change has become a key concern for policy makers, business leaders and individuals all over the world. There exists a broad scientific consensus that the emissions of greenhouse gases, mainly carbon dioxide (CO2), is responsible for global warming…

Integrating Immigrants into the Nordic Labour Markets

Wage Policies and the Integration of Immigrants

Simon Ek and Per Skedinger

Most Nordic countries struggle with the integration of low-skilled immigrants. Relying on research from primarily the Nordics, we discuss to what extent minimum wage reductions can improve labour market prospects for immigrants, whether unskilled and low-pay jobs…

Integrating Immigrants into the Nordic Labour Markets

Integrating Immigrants into the Nordic Labour Markets: Background, Summary and Policy Conclusions

Lars Calmfors and Nora Sánchez Gassen

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. This volume investigates how labour market integration of these groups can be promoted…

European Journal of Public Health

Debt and Mental Health – New Insights about the Relationship and the Importance of the Measure for Mental Health

Margareta Dackehag, Lina-Maria Ellegård, Ulf Gerdtham and Therese Nilsson

Background: Empirical research suggests that household debt and payment difficulties are detrimental to mental health. Despite well-known measurement problems that may contaminate analyses using subjective self-reported health measures, our knowledge is very limited…

Journal of Business Venturing

Well-being Effects of Self-employment: A Spatial Inquiry

Maria Abreu, Özge Öner, Aleid Brouwer and Eveline van Leeuwen

Our paper presents an empirical analysis of entrepreneurial well-being using a large-scale longitudinal household survey from the UK that tracks almost 50,000 individuals across seven waves over the period 2009–2017, as well as a number of exploratory case…

Journal of Agricultural Economics

The Local Impacts of Agricultural Subsidies: Evidence from the Canadian Prairies

Ray D. Bollman and Shon Ferguson

We estimate the impact of removing an export subsidy on the local economies of Alberta, Saskatchewan and Manitoba, exploiting the large regional variation of a 1995 reform. We find that the loss of the subsidy resulted in significantly lower farm value‐added, farm…

Research Policy

Has the Swedish Business Sector Become More Entrepreneurial than the U.S. Business Sector?

Fredrik Heyman, Pehr-Johan Norbäck, Lars Persson and Fredrik Andersson

Recent studies document a 30-year decline in various measures of entrepreneurship in the U.S. Using detailed Swedish employer-employee data over the period from 1990 to 2013, we find young firms to be more prominent in the Swedish business sector than in the U.S.…

International Tax and Public Finance

Trends and Gradients in Top Tax Elasticities: Cross-country Evidence, 1900–2014

Enrico Rubolino and Daniel Waldenström

We construct a cross-country dataset spanning 1900–2014 to estimate the tax elasticity of top incomes. Our results show that top tax elasticities vary tremendously over time; they were medium to low before 1950, dropped to almost zero during the postwar era and…

Journal of Business & Economic Statistics

Homothetic Efficiency: Theory and Applications

Jan Heufer and Per Hjertstrand

We provide a nonparametric revealed preference approach to demand analysis based on homothetic efficiency. Homotheticity is widely assumed (often implicitly) because it is a convenient and often useful restriction. However, this assumption is rarely tested, and data…

Business Horizons

Blockchain Adoption: A Value Driver Perspective

Jannis Angelis and Elias Ribeiro da Silva

The ongoing discussion regarding blockchain technologies is focused primarily on cryptocurrencies, but blockchain features and functionalities have developed beyond financial instruments. As the technologies provide new functionalities, the associated value…

American Economic Review

Payroll Taxes, Firm Behavior, and Rent Sharing: Evidence from a Young Workers' Tax Cut in Sweden

Emmanuel Saez, Benjamin Schoefer and David Seim

This paper uses administrative data to analyze a large employer-borne payroll tax rate cut for young workers in Sweden. We find no effect on net-of-tax wages of young treated workers relative to slightly older untreated workers, and a 2–3 percentage point…

Research Policy

The Economic Microgeography of Diversity and Specialization Externalities – Firm-Level Evidence from Swedish Cities

Martin Andersson, Johan P Larsson and Joakim Wernberg

We employ finely geo-coded firm-level panel data to assess the long-standing question whether agglomeration economies derive from specialization (within-industry), diversity (between-industry) or overall density. Rather than treating the city as a single unit, we…

American Journal of Political Science

Do Social Rights Affect Social Outcomes?

Christian Bjørnskov and Jacob Mchangama

While the United Nations and NGOs are pushing for global judicialization of economic, social, and cultural rights (ESCRs), little is known of their consequences. We provide evidence of the effects of introducing three types of ESCRs into the constitution: the rights…

Scottish Journal of Political Economy

The Geography and Concentration of Authorship in the Top Five: Implications for European Economics

Simon Ek and Magnus Henrekson

We study to what degree authors who publish in the five most prestigious journals in economics have previously published there and in which world region they are based. Although still high, the concentration of United States‐based and previously published top‐five…

Journal of Economic Behavior & Organization

Homothetic Preferences Revealed

Jan Heufer and Per Hjertstrand

We introduce a method to recover homothetic preferences from choice data with minor optimization or measurement errors. Our method allows for a more detailed graphical analysis to reveal subjects’ preferences and to choose appropriate functional forms for…

North American Journal of Economics and Finance

Stock Market Impact of Cross-Border Acquisitions in Emerging Markets

Pehr-Johan Norbäck and Lars Persson

Entry by multinational enterprises (MNEs) into emerging markets has increased substantially over the last decades. Many of these MNE entries have taken place in concentrated markets. To capture these features, we construct a strategic interaction model of MNE…

Energy Strategy Reviews

Production Efficiency of Nodal and Zonal Pricing in Imperfectly Competitive Electricity Markets

Mahir Sarfati, Mohammad Reza Hesamzadeh and Pär Holmberg

Electricity markets employ different congestion management methods to handle the limited transmission capacity of the power system. This paper compares production efficiency and other aspects of nodal and zonal pricing. We consider two types of zonal pricing: zonal…

Neoliberalism and Market Forces in Education: Lessons from Sweden

Trust-Based Evaluation in a Market-Oriented School System

Jonas Vlachos

In Sweden, a trust-based evaluation system meets a market-oriented school system which allows liberal entry conditions to voucher-funded private providers, several of which are for-profit corporations. The purpose of this chapter is to analyze how different providers…


Foreign Direct Investment, Source Country Heterogeneity and Management Practices

Fredrik Heyman, Pehr-Johan Norbäck and Rickard Hammarberg

This paper examines whether and, if so, why source country heterogeneity exists in foreign direct investment. Using detailed Swedish matched employer‐employee data for the period from 1996 to 2009, we find statistical evidence that affiliate performance differs…

Rethinking Law

Al and Future Skills in the Labour Market

Mårten Blix

The past provides some guidance on how to handle the effects of technological change on society and the labour market. The question is how much. During the Industrial Revolution, some skilled workers lost their jobs as factories were built and machines gradually came…

Environmental Economics and Policy Studies

Why is Carbon Leakage for Energy-Intensive Industry Hard to Find?

Shon Ferguson and Mark Sanctuary

A number of researchers have found that imports by pollution heavy industries do not increase in response to tighter pollution policy. We empirically evaluate the impact of an sudden and unexpected increase in Swedish electricity prices in the 2000s on the imports of…

Public Choice

Regulation and Government Debt

Niclas Berggren and Christian Bjørnskov

Government debt is large in most developed countries, and while budget deficits may reflect short-term attempts to kick-start the economy in times of crisis by means of fiscal stimulus, the longer-term consequences may be detrimental to investment and growth. Those…

International Business Review

Strangers on the Board: The Impact of Board Internationalization on Earnings Management of Nordic Firms

Reggy Hooghiemstra, Niels Hermes, Lars Oxelheim and Trond Randøy

The internationalization of firms has led to boards becoming more international as well. In this study, we investigate the consequences of board internationalization. In particular, by drawing on research on language and board dynamics, we identify theory-based…

International Business Review

Optimal vs Satisfactory Transparency: The Impact of Global Macroeconomic Fluctuations on Corporate Competitiveness

Lars Oxelheim

Being able to separate temporary global macroeconomic influences – caused by fluctuations in exchange rates, interest rates and inflation – from intrinsic performance – related to a superior product, production process or management – is…

Scandinavian Journal of Economics

Sizing Up the Impact of Embassies on Exports

Shon Ferguson and Rikard Forslid

The purpose of this study is to test for the effects of trade promotion via the foreign service. The theory of trade with heterogeneous firms predicts that unilateral trade promotion allows medium- sized firms to export. We investigate the effects of trade promotion…

Interdisciplinary European Studies

The European Union in a Changing World Order


This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

About the book


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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