Florin Maican and Matilda Orth
We use a dynamic oligopoly model of entry and exit with store-type differentiation to evaluate how entry regulations affect profitability, market structure and welfare. Based on unique data for all retail food stores in Sweden, we estimate…
Niclas Berggren, Christian Bjørnskov and Therese Nilsson
There is great variation in views on and treatment of minorities such as gay men across the world. We are the first to pinpoint what features of societies that are beneficial to gay men’s quality of life by making use of a unique new cross-country…
Assar Lindbeck and Jörgen Weibull
The paper provides a framework for analysis of remuneration to agents whose task is to make well-informed decisions on behalf of a principal, with managers in large corporations as the most prominent example.
The principal and agent initially bargain…
Pär Holmberg and Frank A. Wolak
We analyze how market design in.uences the bidding behavior in multi-unit procurement auctions where suppliers have uncertain costs and are uncertain about the availability of production units, as in wholesale electricity markets. We .nd that the…
Mario Blázquez de Paz
Electricity markets are becoming more integrated around the world. However, the knowledge of the effects of different auction formats on suppliers’ strategies in the presence of transmission constraints and transmission costs is still very limited.…
Wen Zhou, Nikita Koptyug, Shutao Ye, Yifan Jia and Xiaolong Lu
As computer science and complex network theory develop, non-cooperative games and their formation and application on complex networks have been important research topics. In the inter-firm innovation network, it is a typical game behavior for firms to…
Reggy Hooghiemstra, Niels Hermes, Lars Oxelheim and Trond Randøy
Prior literature shows that choices regarding board composition are associated with earnings management. We add to this literature by examining the effects of the presence of a foreign board member on earnings management.
Using a sample of 3,249…
Edward Anderson and Pär Holmberg
We consider a procurement auction, where each supplier has private costs and submits a stepped supply function. We solve for a Bayesian Nash equilibrium and show that the equilibrium has a price instability in the sense that a minor change in a supplier.s…
David Cesarini, Erik Lindqvist, Matthew J. Notowidigdo and Robert Östling
Online Appendix
We study the effect of wealth on labor supply using the randomized assignment of monetary prizes in a large sample of Swedish lottery players. We find winning a lottery prize modestly reduces labor earnings, with the reduction being…
Cristian Huse and Nikita Koptyug
This paper examines how consumers react to the financial distress of durable goods manufacturers by looking at the Swedish new car market. We employ a difference-in-differences matching methodology whereby we compare sales of carmaker Saab with those of a…
Joseph Briggs, David Cesarini, Erik Lindqvist and Robert Östling
We estimate the causal effect of wealth on stock market participation using administrative data on Swedish lottery players. A $150,000 windfall gain increases stock ownership probability among pre-lottery non-participants by 12 percentage points, while…
Makan Amini, Mathias Ekström, Tore Ellingsen, Magnus Johannesson and Fredrik Strömsten
Failure to express minority views may distort the behavior of company boards, committees, juries, and other decision-making bodies. Devising a new experimental procedure to measure such conformity in a judgment task, we compare the degree of conformity in…
Christina Mangaard Jørgensen and Christian Bjørnskov
We explore the potential effects of the first leaders of Sub-Saharan Africa. We first outline a set of theoretical reasons for why leaders may matter particularly at the critical juncture of African independence and why this influence may be persistent.…
Carl Davidson, Fredrik Heyman, Steven Matusz, Fredrik Sjöholm and Susan Chun Zhu
Building on a framework introduced by Chaney and Ossa (2013), we construct a task-based model of the firm’s choice of occupational inputs to examine how that choice varies with greater global engagement. We depart from Chaney and Ossa by assuming…
Daniel Waldenström
This study presents a new database, the Swedish National Wealth Database (SNWD), which contains annual data on private, public and national wealth and sectoral saving rates in Sweden over the past two centuries. The paper reviews previous investigations…
Johan Wennström
While it might appear self-evident that the trend toward the New Public Management (NPM) in the public administration systems of many Western countries is an outgrowth of neoliberalism, the case of Swedish education suggests that policies can have widely…
Magnus Henrekson and Tino Sanandaji
In some classes of models, taxes at the owner level are “neutral” and have no effect on firm activity. However, this tax neutrality is sensitive to assumptions and no longer holds in more complex models. We review recent research that…
Ola Andersson and Tommy Andersson
The afternoon effect, i.e., that prices in a sequence of auctions with identical items are decreasing with the order in which the auctions are terminated, is a frequently observed phenomenon in empirical auction studies. Using an unsurpassed amount of…
Ola Andersson, Topi Miettinen, Kaisa Hytönen, Magnus Johannesson and Ute Stephan
We experimentally prime subjects subliminally prior to charity donation decisions by showing words that have connotations to prosocial values for a very short duration of time (17ms). Our main finding is that, compared to a baseline condition, the…
Roger Svensson and Andreas Westermark
Gesell taxes on money holdings have received attention in recent decades as a way of alleviating the zero lower bound on interest rates. Less known is that such a tax was the predominant method used to generate seigniorage in large parts of medieval…
Bruce Hearn, Lars Oxelheim and Trond Randøy
This study examines the governance attributes of post-IPO (initial public offering) retained ownership of private equity in business group constituent firms in contrast to their unaffiliated counterparts, in 202 newly listed firms in 22 emerging African…
Margareta Dackehag and Åsa Hansson
More recently researchers have turned to analyze how the tax structure, rather than the overall tax level, affects economic performance. For instance, several papers have investigated how taxation on corporate and individual (labor) income influences…
Niclas Berggren and Therese Nilsson
Tolerance is a distinguishing feature of Western culture: There is a widespread attitude that people should be allowed to say what they want even if one dislikes the message. Still, the degree of tolerance varies between and within countries, as well as…
Fredrik Heyman, Pehr-Johan Norbäck and Lars Persson
This paper examines the Swedish industrial reorganization process that took place from 1990-2009. We argue that the early adoption of information and communication technology (ICT) in Swedish industry was a crucial element in the success of the industrial…
Håkan Jankensgård, Alf Alviniussen and Lars Oxelheim
In this paper we challenge the role of Foreign Exchange Risk Management (FXRM) in corporate management. We believe it is fair to characterize FXRM, on the whole, as a legacy activity rather than something that reflects a realistic cost-benefit analysis at…
Andreas Bergh, Irina Mirkina and Therese Nilsson
The existing literature on determinants of migration flows typically claims that income differences across countries should be a pushing factor for people's movement. We suggest that institutional quality is a better proxy for the factors that trigger…
Lars Calmfors
EU-level fiscal rules have not been able to prevent the large-scale accumulation of government debt in many eurozone countries. One explanation was major flaws in the rules. Some of these flaws have now been corrected. But the failure of the rules…
Lars Calmfors
The paper describes the monetary and fiscal policy frameworks in Sweden and analyses how they were established as well as current challenges. Sweden provides a good example of how deep economic crisis, in interaction with independent thinking by academics…
Zhanar Akhmetova and Shon Ferguson
The paper answers two questions simultaneously. What is the effect of offshoring on firms' total factor productivity? What is the effect of offshoring on skill-biased technological change? We estimate a model of firm production that allows for the…
Harald Edquist and Magnus Henrekson
We investigate to what extent ICT and R&D capital is associated with value added growth in the Swedish business sector. By estimating output elasticities based on data for 47 different industries for the period 1993–2012 we show that ICT and…
Christina Håkanson, Erik Lindqvist and Jonas Vlachos
We document a significant increase in the sorting of workers by cognitive and non-cognitive skills across Swedish firms between 1986 and 2008. The weight of the evidence suggests that the increase in sorting is due to stronger complementarities between…
Thomas Buser, Anna Dreber and Johanna Möllerström
Women are often less willing than men to compete, even in tasks where there is no gender gap in performance. Also, many people experience competitive contexts as stressful and previous research has documented that men and women sometimes react differently…
Mario Blázquez de Paz
The integration of electricity markets around the world has increased the importance of congestion between countries/states and has initiated a discussion of how to harmonize network tariffs. This paper analyzes how the transmission capacity and the…
Erik Grönqvist and Erik Lindqvist
We show that officer training during the Swedish military service has a strong positive effect on the probability to attain a managerial position later in life. The most intense type of officer training increases the probability of becoming a civilian…
Martin Olsson and Joacim Tåg
Although private equity firms are often criticized for layoffs, little evidence exists regarding which employees lose their jobs and why. We argue that explanations for the job polarization process can also explain layoffs after buyouts. Buyouts reduce…
Roger Svensson
Firms and governments spend billions of dollars on R&D every year. To increase social welfare, the results of R&D must be commercialized so that consumers can benefit from improved products and lower prices. One measure of R&D output is…
Louise Johannesson and Petros C. Mavroidis
WTO judges are proposed by the WTO Secretariat and elected to act as ‘judges’ if either approved by the parties to a dispute, or by the WTO Director-General in case no agreement between the parties has been possible. They are typically…
Sara Fogelberg and Ewa Lazarczyk
Wind power generation of electricity has gained popular support because of its low environmental impact and because of its low costs relative to other renewable energy sources. However, concerns have been raised in the power sector that wind power…
Ewa Lazarczyk
This paper is an empirical investigation of how traders react to public news in a market where there are lots of non-scheduled announcements, often arriving simultaneously. Using detailed trade information from the Nordic intra-day electricity market and…
Niklas Elert, Fredrik Andersson and Karl Wennberg
This paper studies the long-term impact of entrepreneurship education and training in high school on entrepreneurial entry, performance, and survival. Using propensity score matching, we compare three Swedish cohorts from Junior Achievement Company…
Sven-Olov Daunfeldt, Niklas Elert and Dan Johansson
It is frequently argued that policymakers should target high-tech firms, i.e., firms with high R&D intensity, because such firms are considered more innovative and therefore potential fast-growers. This argument relies on the assumption that the…
Carl Magnus Bjuggren
Current theoretical predictions of how employment protection affects firm productivity are ambiguous. In this paper, I study the effect of employment protection rules on labor productivity using Swedish register data. A reform of employment protection…
David Cesarini, Erik Lindqvist, Robert Östling and Björn Wallace
Online Appendix
We use administrative data on Swedish lottery players to estimate the causal impact of substantial wealth shocks on players' own health and their children's health and developmental outcomes. Our estimation sample is large,…
Thomas Åstebro and Joacim Tåg
Recent research has shown that entrepreneurs who start incorporated firms are fundamentally different from entrepreneurs who start sole proprietorships. This difference suggests that incorporation status may distinguish the self-employed with no ambition…
Assar Lindbeck and Mats Persson
In this paper, we ask under what conditions norms can enhance welfare by mitigating moral hazard in income insurance. We point out a particular role of norms, namely to compensate for insurers’ difficulties in monitoring the behavior of insured…
Selva Bahar Baziki, Pehr-Johan Norbäck, Lars Persson and Joacim Tåg
An increasingly large share of cross-border acquisitions are undertaken by private equity-firms (PE-firms) and not by traditional multinational enterprises (MNEs). We propose a model of cross-border acquisitions in which MNEs and PE-firms compete over…
Christian Bjørnskov
In this paper, I explore the politically contested association between the degree of capitalism, captured by measures of economic freedom, and the risk and characteristics of economic crisis. After offering some brief theoretical considerations, I…
Özge Öner
This paper explores the role of retailers as an urban amenity. Using data for Swedish rural and city municipalities for 2002–2008, ‘accessibility to shops’ measures are constructed for the shops in the municipalities and in the hosting…
Pontus Braunerhjelm and Magnus Henrekson
This paper examines policy measures that foster the creation of innovations with high inherent potential and that simultaneously provide the right incentives for individuals to create and expand firms that disseminate such innovations in the form of…
Niclas Berggren, Sven-Olov Daunfeldt and Jörgen Hellström
Many countries have undertaken central-bank independence reforms, but the years of implementation differ. What explains such differences in timing? This is of interest more broadly, as it sheds light on factors that matter for the speed at which economic…
Magnus Henrekson and Mikael Stenkula
This paper examines the development of taxation in Sweden from 1862 to 2013. The examination covers six key aspects of the Swedish tax system: the taxation of labor income, capital income, consumption, inheritance and gift, wealth and real estate. The…