2009


816. Social Networks

Joan de Marti and Yves Zenou

We survey the literature on social networks by putting together the economics, sociological and physics/applied mathematics approaches, showing their similarities and differences. We expose, in particular, the two main ways of modeling network formation.…


815. Make-or-buy Decisions and the Manipulability of Performance Measures

Fredrik Andersson

The make-or-buy decision is analyzed in a simple framework combining contractual incompleteness with the existence of imperfect but contractible performance measures. Contractual incompleteness gives rise to two regimes, identified with make and buy. The…


814. Mixed Strategies in Discriminatory Divisible-good Auctions

Edward J. Anderson, Pär Holmberg and Andrew B. Philpott

Using the concept of market-distribution functions, we derive general optimality conditions for discriminatory divisible-good auctions, which are also applicable to Bertrand games and non-linear pricing. We introduce the concept of o¤er…


813. Taxation and the Quality of Entrepreneurship

Andrea Asoni and Tino Sanandaji

We study the effect of taxation on entrepreneurship, taking into account both the amount of entry and the quality of new ventures. We show that even with risk neutral agents and no tax evasion progressive taxes can increase entrepreneurial entry, while…


812. The Supply Function Equilibrium and Its Policy Implications for Wholesale Electricity Auctions

Pär Holmberg and David Newbery

The supply function equilibrium provides a game-theoretic model of strategic bidding in oligopolistic wholesale electricity auctions. This paper presents an intuitive account of current understanding and shows how welfare losses depend on the number of…


811. Reversion to the Racial Mean and Mortgage Discrimination

Tino Sanandaji

Studies of mortgage approvals find that minority borrowers are more likely to be denied loans, even when background variables such as current-year income are held constant. This article demonstrates that relying on current year income when comparing…


810. Oil Prices and Real Exchange Rate Movements in Oil-Exporting Countries: The Role of Institutions

Johanna Rickne

Political and legal institutions affect the extent to which the real exchange rates of oil-exporting countries co-move with the oil price. In a simple theoretical model, strong institutions insulate real exchange rates from oil price volatility by…


809. Can Investment in Intangibles Explain the Swedish Productivity Boom in the 1990s?

Harald Edquist

After a severe crisis in the early 1990s, the Swedish economy experienced a boom in productivity growth. Economists have presented three explanations for the fast productivity growth in 1995–2004: market reforms, crisis recovery and the impact of…


808. Perspectives on the Success and Early History of the Industrial Institute for Economic and Social Research (IUI)

Magnus Henrekson

The Industrial Institute of Economic and Social Research (IUI) was founded in 1939. In less than ten years, IUI grew from a small survey bureau to a leading research institute focused on microeconomic research relevant to industrial development. Based on…


807. Entrepreneurship Policy and Globalization

Robin Douhan, Pehr-Johan Norbäck and Lars Persson

What explains the world-wide trend of pro-entrepreneurial policies? We study entrepreneurial policy in a lobbying model taking into account the conflict of interest between entrepreneurs and incumbents. It is shown that international market integration…


806. The Co-twin Methodology and Returns to Schooling – Testing a Critical Assumption

Örjan Sandewall, David Cesarini and Magnus Johannesson

Twins-based estimates of the return to schooling feature prominently in the labor economics literature. The validity of such estimates hinges critically on the assumption that within-pair variation in schooling is explained by factors which are unrelated…


805. Entrepreneurship, Wage Employment and Control in an Occupational Choice Framework

Robin Douhan and Mirjam van Praag

We combine two empirical observations in a general equilibrium occupational choice model. The first is that entrepreneurs have more control than employees over the employment of and accruals from assets, such as human capital. The second observation is…


804. Entrepreneurship and Public Policy

Magnus Henrekson and Mikael Stenkula

Public policy is currently shifting from SME policy towards entrepreneurship policy, which supports entrepreneurship without directing attention to quantitative goals and specific firms or employment groups. The institutional framework set by public…


803. Faces of Politicians: Babyfacedness Predicts Inferred Competence but Not Electoral Success

Panu Poutvaara, Henrik Jordahl and Niclas Berggren

Recent research has documented that competent-looking political candidates do better in U.S. elections and that babyfaced individuals are generally perceived to be less competent than maturefaced individuals. Taken together, this suggests that babyfaced…


802. Correcting Mistakes: Cognitive Dissonance and Political Attitudes in Sweden and the United States

Mikael Elinder

Cognitive dissonance theory predicts that the act of voting makes people more positive toward the party or candidate they have voted for. Following Mullainathan and Washington (2009), I test this prediction by using exogenous variation in turnout provided…


801. Common Trends and Shocks to Top Incomes – A Structural Breaks Approach

Jesper Roine and Daniel Waldensntröm

In this paper we use newly compiled top income share data to estimate common breaks and trends across countries over the twentieth century. By using the most re-cent structural breaks techniques, our approach both confirms previous notions and offers new…


800. Taxation and Entrepreneurship in a Welfare State

Mikael Stenkula

Does tax policy affect the rate of self-employment in a modern welfare state? This question is analyzed empirically based on Swedish data for the entire post-war period. Available tax data indicate that payroll taxes have had a negative influence on the…


799. Creative Destruction and Productive Preemption

Pehr-Johan Norbäck, Lars Persson and Roger Svensson

We develop a theory of commercialization mode (entry or sale) of entrepreneurial inventions into oligopoly, and show that an invention of higher quality is more likely to be sold (or licensed) to an incumbent due to strategic product market effects on the…


798. Mental Accounting in the Housing Market

Johan Almenberg and Artashes Karapetyan

We use a survey to identify a consumer bias with regard to different sources of debt-financing. Less salient debt may generate psychological benefits. This should be weighed against the possible economic costs of a sub-optimal capital structure; but low…


797. Compulsory Education and Jack-of-all-trades Entrepreneurs

Robin Douhan

Can educational institutions explain occupational choice between wage employment and entrepreneurship? This paper follows Lazear's (2005) Jack-of-all-trades hypothesis according to which an individual with a more balanced set of abilities is more likely…


796. Origins and Resolution of Financial Crises; Lessons from the Current and Northern European Crises

Finn Ostrup, Lars Oxelheim and Clas Wihlborg

Since July 2007 the world economy has experienced a severe financial crisis originating in the U.S. housing market. The crisis has subsequently spread to the financial sectors in European and Asian economies and led to a severe worldwide recession. The…


795. Trade, Reallocations and Productivity: A Bridge between Theory and Data in Öresund

Anders Akerman

The paper estimates the causal effect of trade liberalisation on aggregate productivity through mechanisms related to firm selection. The construction of a bridge in 2000 across the Öresund Strait linking Copenhagen with Malmö, Sweden's third largest…


794. The Labor Market Returns to Cognitive and Noncognitive Ability: Evidence from the Swedish Enlistment

Erik Lindqvist and Roine Vestman

We use data from the military enlistment for a large representative sample of Swedish men to assess the importance of cognitive and noncognitive ability for labor market outcomes. The measure of noncognitive ability is based on a personal interview…


793. Burden of Proof in Environmental Disputes in the WTO: Legal Aspects

Henrik Horn and Petros C. Mavroidis

This paper discusses allocation of burden of proof in environmental disputes in the WTO system. Besides laying down the natural principles that (i) the complainant carries the burden to (ii) make a prima facie case that its claim holds, WTO adjudicating…


792. Patent Scope and Technology Choice

Erika Färnstrand Damsgaard

This paper analyzes effects of stronger patent rights on R&D and innovation. It presents a model where the scope of a patent affects an entrant firm's technology choice and thereby the amount of wasteful R&D duplication. The model predicts that…


791. The Burden of Proof in National Treatment Disputes and the Environment

Henrik Horn

This paper examines the role of the burden of proof (BoP) in National Treatment (NT) disputes under trade agreements. In the situation under study, imports may cause environmental damage, in which case less favorable treatment of imported products may be…


790. Firm Heterogeneity and Country Size Dependent Market Entry Cost

Anders Åkerman and Rikard Forslid

This paper introduces a market size dependent firm entry cost into the Melitz (2003) model. This is a relatively small generalisation, which preserves the analytical solvability of the model. Nevertheless, our model yields several new results that are in…


789. Paying to Remove Advertisements

Joacim Tåg

Media firms sometimes allow consumers to pay to remove advertisements from an advertisement-based product. We formally examine an ad-based monopolist's incentives to introduce this option. When deciding whether to introduce the option to pay, the…


788. Supply Function Equilibria: Step Functions and Continuous Representations

Pär Holmberg, David Newbery and Daniel Ralph

In most wholesale electricity markets generators must submit step-function offers of supply to a uniform price auction, and the market is cleared at the price of the most expensive offer needed to meet realised demand. Such markets can most elegantly be…


787. Supply Function Equilibria of Pay-as-Bid Auctions

Pär Holmberg

This paper characterizes the Nash equilibrium in a pay-as-bid (discriminatory), divisible-good, procurement auction. Demand by the auctioneer is uncertain as in the supply function equilibrium model. A closed form expression is derived. Existence of an…


786. Why Are There So Few Female Top Executives in Egalitarian Welfare States?

Magnus Henrekson and Mikael Stenkula

We identify pertinent institutions governing the structure of payoffs with regard to female career progression. Drawing on recent insights in behavioral economics, we hypothesize that interactions between psychological mechanisms and the institutional…


785. How Much does Sweden Invest in Intangible Assets?

Harald Edquist

In this paper I attempt to replicate for Sweden the Corrado, Hulten and Sichel (2006) and Marrano and Haskel (2006) working papers on spending on intangible assets in the US and the UK. Based on their measurement methods the total spending on intangibles…


784. A Trickle-Down Theory of Incentives with Applications to Privatization and Outsourcing

Fredrik Andersson

The make-or-buy decision is analyzed in a three-layer principal-management-agent model. There is a cost-saving/quality tradeoff in effort provision. The principal chooses between employing an in-house management and contracting with an independent…


783. The Organization of the Innovation Industry: Entrepreneurs, Venture Capitalists and Oligopolists

Pehr-Johan Norbäck and Lars Persson

We construct a model where incumbents can either acquire basic innovations from entrepreneurs, or wait and acquire developed innovations from entrepreneurial firms supported by venture capitalists. We show that venture-backed entrepreneurial firms have an…


782. Childcare Costs and the Demand for Children – Evidence from a Nationwide Reform

Eva Mörk, Anna Sjögren and Helena Svaleryd

Exploiting the exogenous variation in user fees caused by a Swedish childcare reform, we are able to identify the causal effect of childcare costs on fertility in a context in which childcare enrollment is almost universal, user fees are low, and labor…

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