Paul Segerstrom
Assar Lindbeck
Assar Lindbeck and Dennis J. Snower
The paper examines the implications of an important aspect of the ongoing reorganization of work - the move from occupational specialization toward multi-tasking - for centralized wage bargaining. The analysis shows how, on account of this reorganization,…
Jörgen W. Weibull
This paper develops a new analytical approach to the old question whether market conditions may influence the internal efficiency of firms. The basic textbook model of the firm is slightly extended to incorporate managers' incentives to reduce production…
Elias Dinopoulos and Paul Segerstrom
This paper presents a dynamic general equilibrium model of trade between two advanced countries in which both innovation and skilled acquisition rates are endogenously determined. The model offers a North-North (as opposed to a North-South) trade…
Trond Petersen, Eva Meyerson and Vemund Snartland
For the U.S. and for Norway it has been established that men and women working in the same occupation for the same employer receive more or less the same pay. So-called within-job wage discrimination is hence not a driving force for the gender wage gap.…
Assar Lindbeck
What were the asserted complementarities between the welfare state and full-employment policies, and why do these complementarities look less convincing today?
Jan Hatzius
This paper shows that the liberalisation of foreign direct investment (FDI) tends to make the effect of labour costs on domestic investment and labour demand more negative. Using data from Germany, it then provides evidence that is consistent with this…
Karolina Ekholm and Johan Torstensson
We use a specific-factor model to examine the conditions under which policy-makers are able to increase aggregate production of high-tech goods by production or R&D-subsidies in the short and long run. The difficulties for the policy-makers in…
Assar Lindbeck
How do we explain the poor employment performance in Western Europe since about the-1970s? This question is in fact twofold : What initiated the dramatic rise in employment, and waht mechanisms have made it continue for so long? My attemps to answer these…
James R. Markusen, Anthony J. Venables, Denise Eby Konan and Kevin H. Zhang
This paper contributes to research endogenizing multinational firms in general-equilibrium trade models. We attempt to integrate separate contributions on horizontal multinationals which produce the same final product in multiple locations, with work on…
Massimo Motta
We propose a simple model to analyze the widespread idea that a necessary condition for firms to make foreign direct investments is that they have firm-specific advantages with respect to host country firms. We show that no such advantages are necessary…
Anthony Venables
These notes discuss some of the main results and models from the theory of international trade under imperfect competition. They are necessairy both selective and superficial. Multinationals are conspicuous by their absence, and the reader is referred to…
Pontus Braunerhjelm, Karolina Ekholm, Lennart Grundberg and Patrik Karpaty
This paper presents recent trends in the foreign activities of Swedish multinationals. The focus is on the distribution of production and R&D between the MNCs' domestic and foreign units, and the pattern of trade within the firms. Issues…
Stefan Fölster and Georgi Trofimov
Several recent articles claim that pre-tax income equality promotes growth. Equality is argued to dampen demand for redistributive economic policies that tax returns to growth-enhancing activities such as investment. These results rest heavily on the…
Magnus Henrekson
The purpose of this papers is confined to illuminating the aspect: Has Sewedish economic growth been slow relative to other industrialised countries in recent decades, i.e. is Sweden lagging behind
Gunnar Fors
This paper analyzes the utilization of R&D results in the home and foreign plants of Swedish multinational enterprises (MNEs). The empirical findings indicate that the firms' R&D undertaken in the home country is used as an input in both the…
Gunnar Fors and Mario Zejan
This paper examines the determinants of overseas R&D by Swedish multinationals. Our empirical results indicate that the location of R&D abroad to a large extent is motivated by the need to adapt products and processes to conditions in the foreign…
Gunnar Fors and Roger Svensson
This paper analyzes the simultaneous relationship between R&D and foreign sales in Swedish multinational enterprises in the manufacturing sector. We argue that this two-way relationship should especially apply to multinationals based in small open…
Gunnar Fors
This paper examines whether Swedish multinational enterprises transfer R&D-generated knowledge to their foreign affiliates. The empirical results suggest that such technology transfer takes place from parent companies to affiliates, especially in the…
Eugenia Kazamaki Ottersten, Thomas Lindh and Erik Mellander
A quality-adjusted specification of labor is suggested which allows firm training to affect labor efficiency. To assess the cost and productivity effects, this specification is integrated into a flexible neoclassical cost function. The empirical analysis…
Stefan Fölster
In spite of some cutbacks in entitlements, many welfare states' spending has continuously increased over the past decades, leading to larger tax burdens and often higher marginal tax rates. Proposals for reform often focus on reduced social insurance…
Assar Lindbeck, Sten Nyberg and Jörgen Weibull
This paper analyzes the interplay between economic incentives and social norms in a public finance context. We assume that to live off one's own work is a social norm, and that the larger the population fraction adhering to this norm, the more…
John Sutton
This paper examines the evolution of a skew distribution of firm sizes from the viewpoint of the 'Bounds' approach to market structure. It confines attention to the role played by non-strategic factors (statistical independence, and cost side…
Assar Lindbeck and Dennis J. Snower
The paper shows how prolonged price inertia can arise in a macroeconomic system in which there are temporary price rigidities as well as production lags in the use of intermediate goods. In this context, changes in production demand - generated, say, by…
Abhijit Banerjee and Jörgen W. Weibull
This paper examines equilibrium and stability in symmetric two-player cheap-talk games. In particular, we characterize the set of neutrally stable outcomes in finite cheap-talk 2 x 2 coordination games. This set is finite and functionally independent of…
Assar Lindbeck
This paper deals with economic incentives and welfare-state arrangements in OECD countries. This paper emphasises what may be called "dynamic" incentive issues, i.e. incentive effects that envolve over time. The discussion also covers the…