492. Growth and the Public Sector: A Critique of the Critics

Stefan Fölster and Magnus Henrekson

In a recent review article Jonas Agell, Thomas Lindh and Henry Ohlsson (1997) claim that theoretical and empirical evidence does not allow any conclusion on whether there is a relationship between the rate of economic growth and the size of the public…

491. New Keynesianism and Aggregate Economic Activity

Assar Lindbeck

This paper addresses various attempts by so-called new Keynesians, writing mainly in the 1980s and 1990s, to strengthen the analytical basis, in particular the microeconomic foundations, of these assertions. What, exactly, have then the new Keynesians…

490. Foreign Direct Investment and Employment: Home Country Experience in the United States and Sweden

Magnus Blomström, Gunnar Fors and Robert E. Lipsey

We compare the relation between foreign affiliate production and parent employment in U.S. manufacturing multinationals with that in Swedish firms. U.S. multinationals appear to have allocated some of their more labor intensive operations selling in world…

489. Evolution, Rationality and Equilibrium in Games

Jörgen W. Weibull

Evolutionary game theory studies the robustness of strategy profiles and sets of strategy profiles with respect to evolutionary forces in games played repeatedly in large populations of boundedly rational agents. The approach is macro oriented in the…

488. Trade, Southern Integration, and Uneven Development

Georgi Trofimov

The paper demonstrates how trade between developing countries can cause the divergence of long-run growth among these countries. The model describes two symmetric countries trading with each other and the industrial rest of the world. Bilateral trade…

487. What Have We Learned from Evolutionary Game Theory so Far?

Jörgen W. Weibull

Evolutionary theorizing has a long tradition in economics. Only recently has this approach been brought into the framework of non-cooperative game theory. Evolutionary game theory studies the robustness of strategic behaviour with respect to evolutionary…

486. Implication of Skill-Biased Technological Change: International Evidence

Eli Berman

Demand for less skilled workers decreased dramatically in the US and in other developed countries over the past two decades. We argue that pervasive skill biased technological change rather than increased trade with the deveoping world is the principal…

485. Noisy Equilibrium Selection in Coordination Games

Hans Carlsson and Mattias Ganslandt

We analyse symmetric coordination games à la Bryant (1983) where a number of players simultaneously choose efforts from a compact interval and the lowest effort determines the output of a public good. Assuming that payoffs are concave in the public…

484. Multi-Market Competition and Coordination in Games

Mattias Ganslandt

This thesis consists of one essay in industrial organization and two essays in non-cooperative game theory.

483. The Number and the Size Distribution of Firms in Sweden and Other European Countries

Dan Johansson

This study investigates changes in the number and the size distribution of firms in Sweden in the period 1968-1993. The number and the size distribution of Swedish firms are compared to the number and the size distribution of firms in eleven European…

482. Explaining National Differences in the Size and Industrial Distribution of Employment

Steven J. Davis and Magnus Henrekson

What factors determine national differences in the size and industry distribution of employment? This study stresses the role of business taxation, employment security laws, credit market policies, wage-setting institutions and the size of the public…

481. The European Unemployment Dilemma

Lars Ljungqvist and Thomas J. Sargent

Post World War II European welfare states experienced several decades of relatively low unemployment, followed by a plague of persistently high unemployment since the 1980's. We impute the higher unemployment to welfare states' diminished ability…

480. Allocation of Economic Competence in Teams: A Comparative Institutional Analysis

Pavel Pelikan

Attention is called to a little explored scarce resource, named 'economic competence', which combines features of human capital and bounded rationality, and can be defined as the non-transferable ('tacit') abilities of economic agents to…

479. Internal Efficiency and External Conditions

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…

478. A Note on Social Norms and Transfers

David Sundén and Jörgen W. Weibull

This note elaborates an extension of the paper "Social Norms, the Welfare State, and Voting" by Lindbeck, Nyberg, and Weibull [1]. That paper studies the effects of a social norm against living off others work. In the welfare-state context of…

477. Trade and Security, I: Anarchy

James E. Anderson and Douglas Marcouiller, S.J.

Market exchange is subject to an endogenously-determined level of predation which impedes specialization and gains from trade. Utility-maximizing agents opt between careers in specialized production and careers in predation. Three types of equilibria may…

476. Social Norms and Economic Incentives in the Welfare State

Assar Lindbeck, Sten Nyberg and Jörgen W. Weibull

This paper analyzes the interplay between social norms and economic incentives in the context of work decisions in the modern welfare state. We assume that to live off one's own work is a social norm, and that the larger the population fraction…

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.

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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