2006


685. Competition vs. Regulation in Mobile Telecommunications

Johan Stennek and Thomas P. Tangerås

This paper questions whether competition can replace sector-specific regulation of mobile telecommunications. We show that the monopolistic outcome prevails independently of market concentration when access prices are determined in bilateral negotiations.…


684. A Survey of the Literature on the WTO Dispute Settlement System

Henrik Horn and Petros C. Mavroidis

This paper surveys the law and economics literature on WTO dispute settlement. As a background, we first briefly lay out main features of the legal framework, and discuss possible roles of a dispute settlement mechanism. We then discuss the two main…


683. The European Size Distribution of Firms and Employment

Mikael Stenkula

The policy debate in recent years has increasingly focused on issues concerning size distribution of firms and employment. It is often claimed that we are approaching a new economic era where large enterprises have lost their importance in developed…


682. Industry Concentration and Welfare - On the Use of Stock Market Evidence from Horizontal Mergers

Sven-Olof Fridolfsson and Johan Stennek

There is diverging empirical evidence on the competitive effects of horizontal mergers: consumer prices (and thus presumably competitors' profits) often rise while competitors' share prices fall. Our model of endogenous mergers provides a possible…


681. An Essay on Economic Reforms and Social Change in China

Assar Lindbeck

This paper applies a systems-oriented, “holistic” approach to China’s radical economic reforms during the last quarter of a century. It characterizes China’s economic reforms in terms of a multidimensional classification of economic systems. When looking…


680. Economic-Social Interaction during China’s Transition

Assar Lindbeck

I discuss the nature of the economic reforms in China during the last quarter of a century in the context of a typology of economic systems, emphasizing the interaction between economic and social mechanisms. I also consider China’s options for further…


679. Merged Municipalities, Higher Debt: On Free-riding and the Common Pool Problem in Politics

Henrik Jordahl and Che-Yuan Liang

We use the 1952 Swedish municipal amalgamation reform to study free-riding and the common pool problem in politics. We expect municipalities that were affected by the reform to increase their debt in anticipation of a merger, and this effect to be larger…


678. Israel M. Kirzner: An Outstanding Austrian Contributor to the Economics of Entrepreneurship

Robin Douhan, Gunnar Eliasson and Magnus Henrekson

Israel M. Kirzner is the 2006 winner of The International Award for Entrepreneurship and Small Business Research. In this essay, we present and evaluate his main contributions to the economics of entrepreneurship. The focus is on how Kirzner defines the…


677. Why Does Sovereign Risk Differ for Domestic and Foreign Investors? Evidence from Scandinavia, 1938­­–1948

Daniel Waldenström

Recent theoretical models suggest that the costs governments face when defaulting on their domestic and external debt may differ considerably. This paper examines if this proposed cost difference is reflected in sovereign risk spreads across domestic and…


676. Using Markets to Measure Pre-War Threat Assessments: The Nordic Countries Facing World War II

Daniel Waldenström and Bruno S. Frey

The conventional Nordic historiography of World War II states that there were few, if any, in the Nordic countries who perceived a significantly increased threat of war between 1938 and early 1940. At the same time, historical methods face problems when…


675. Acquisitions, Multinationals and Wage Dispersion

Fredrik Heyman, Fredrik Sjöholm and Patrik Gustavsson Tingvall

Multinational firms pay relatively high wages. Less is known about the wage structure within multinational and non-multinational firms. We examine the impact of acquisitions on wage dispersion in Sweden using a large matched employer-employee data set.…


674. Is There Really a Foreign Ownership Wage Premium? Evidence from Matched Employer-Employee Data

Fredrik Heyman, Fredrik Sjöholm and Patrik Gustavsson Tingvall

Numerous studies on firm-level data have reported higher average wages in foreign-owned firms than in domestically-owned firms. This, however, does not necessarily imply that the individual worker’s wage increase with foreign ownership. Using detailed…


673. Inequality and Trust in Sweden: Some Inequalities are More Harmful than Others

Magnus Gustavsson and Henrik Jordahl

We present new evidence on the influence of income inequality on generalized trust. Using individual panel data from Swedish counties together with an instrumental variable strategy, we find that differences in disposable income, and especially…


672. Private Observation, Tacit Collusion and Collusion with Communication

Igor Mouraviev

The paper studies the role of communication in facilitating collusion. The situation of infinitely repeated Cournot competition in the presence of antitrust enforcement is considered. Firms observe only their own production levels and a common market…


671. The Looks of a Winner: Beauty, Gender and Electoral Success

Niclas Berggren, Henrik Jordahl and Panu Poutvaara

We study the role of beauty in politics. For the first time, focus is put on differences in how women and men evaluate female and male candidates and how different candidate traits relate to success in real and hypothetical elections. We have collected…


670. Entrepreneurial Innovations, Competition and Competition Policy

Pehr-Johan Norbäck and Lars Persson

We show that, in the case when innovations are for sale, increased product market competition, captured by reduced product market profits, can increase the incentives for innovations. The reason is that the incentive to innovate depends on the acquisition…


669. The Interplay between Money Market Development and Changes in Monetary Policy Operations in Small European Countries, 1980–2000

Jens Forssbæck and Lars Oxelheim

We study the interplay between money market development and changes in monetary policy operating procedures in 11 European countries from c. 1980 up to the launch of EMU. Aspects of money market development such as the size and structure of different…


668. Producer Prices in the Transition to a Common Currency

Niclas Andrén and Lars Oxelheim

We analyze producer price developments in the transition from a national exchange rate regime to a monetary union. The focus is on the European Economic and Monetary Union (EMU). Stylized facts witness about an exploding gaps in producer-price inflation…


667. The Evolution of Top Incomes in an Egalitarian Society; Sweden, 1903–2004

Jesper Roine and Daniel Waldenström

This study presents new homogenous series of top income shares in Sweden over the period 1903–2004. We find that, starting from levels of inequality approximately equal to those in other Western countries at the time, the income share of the Swedish top…


666. Investment Liberalization - Why a Restrictive Cross-Border Merger Policy can be Counterproductive

Pehr-Johan Norbäck and Lars Persson

Investment liberalizing countries are often concerned that cross-border mergers & acquisitions, in contrast to greenfield investments, might have an adverse effect on domestic firms and consumers. However, given that domestic assets are…


665. Technological Breakthroughs and Productivity Growth

Harald Edquist and Magnus Henrekson

This study consists of an examination of productivity growth following three major technological breakthroughs: the steam power revolution, electrification and the ICT revolution. The distinction between sectors producing and sectors using the new…


664. Innovation Performance and Government Financing

Roger Svensson

External financing is important when inventors and small technology-based firms wish to commercialize their inventions. However, it is likely that problems related to adverse selection and moral hazard are present, and market failures occur, since…


663. Cross-Border Acquisitions and Corporate Taxes: Efficiency and Tax Revenues

Pehr-Johan Norbäck, Lars Persson and Jonas Vlachos

We find that reduced foreign corporate taxes may lead to inefficient foreign acquisitions if complementarities between foreign and domestic assets are low, and to efficient foreign acquisitions if such complementarities are high. Moreover, with large…


662. The Welfare State – Background, Achievements, Problems

Assar Lindbeck

This paper starts out with a brief discussion of the historical background, the justifications and the political forces behind the built up of the modern welfare state. It also summarizes its major achievements in terms of economic efficiency and…


661. How Important is Access to Jobs? Old Question - Improved Answer

Olof Åslund, John Östh and Yves Zenou

We study the impact of job proximity on individual employment and earnings. The analysis exploits a Swedish refugee dispersal policy to get exogenous variation in individual locations. Using very detailed data on the exact location of all residences and…


660. Job Security and Work Absence: Evidence from a Natural Experiment

Assar Lindbeck, Mårten Palme and Mats Persson

We analyze the consequences for sickness absence of a selective softening of job security legislation for small firms in Sweden in 2001. According to our differences-in-difference estimates, aggregate absence in these firms fell by 0.2-0.3 days per year.…


659. A Model of Income Insurance and Social Norms

Assar Lindbeck and Mats Persson

A large literature on ex ante moral hazard in income insurance emphasizes that the individual can affect the probability of an income loss by choice of lifestyle and hence, the degree of risk-taking. The much smaller literature on moral hazard ex post…


658. Is Team Formation Gender Neutral? Evidence from Coauthorship Patterns

Anne Boschini and Anna Sjögren

We investigate if voluntary team formation is gender neutral. To this end, we model team formation as a random matching process influenced by the agents' preferences for team size and gender composition and derive how team formation depends on the gender…


657. National Treatment in the GATT

Henrik Horn

The National Treatment clause (NT) is the first-line defense in the GATT (and in most other trade agreements) against opportunistic exploitation of the inevitable incompleteness of the agreement. This paper examines the role of NT as it applies 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.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se