Working Papers 2018

All new research is first presented in a Working Paper (WP) where the target audience is primarily other researchers. All WP’s from recent years are written in English. Since 2006, a Swedish summary has also been included. A WP usually contains research that has progressed enough to be ready to be submitted to a scientific journal for review and potential publication.


1248. Investor-State vs. State-State Dispute Settlement

Henrik Horn

International investment agreements have provoked intense criticism in the policy debate during recent years. Particularly contentious has been their “"ISDS" ”mechanisms, which enable investors to litigate against host countries. This paper…


1247. Inventory Behavior, Demand, and Productivity in Retail

Florin Maican and Matilda Orth

This paper studies the factors underlying the heterogeneity in inventory behavior and performance across retail stores. We use a dynamic model of multi-product retailers and local competition to estimate store productivity and consumers’ perceived…


1246. Linking Net Foreign Portfolio Debt and Equity to Exchange Rate Movements

Malin Gardberg

Many currencies, especially those of countries with negative net foreign assets, tend to depreciate during times of financial turbulence. Using a panel of 26 currencies over the period 1/1997 – 6/2016, I show that the composition of net foreign…


1245. The Rise of Private Foundations as Owners of Swedish Industry: The Role of Tax Incentives 1862–2018

Dan Johansson, Mikael Stenkula and Niklas Wykman

The tax system has at times favoured firm control through private foundations, which has been argued to inhibit high-impact entrepreneurship and economic growth. However, research has been hampered due to a lack of systematic historical tax data. The…


1244. Location Choices of Swedish Independent Schools: How Does Allowing for Private Provision Affect the Geography of the Education Market?

Karin Edmark

This paper studies the location decisions of Swedish start-up independent schools. It makes use of the great expansion of independent schools following a reform implemented in 1992 to test what local market characteristics are correlated with independent…


1243. Well-being Effects of Self-employment: A Spatial Inquiry

Maria Abreu, Özge Öner, Aleid Brouwer and Eveline van Leeuwen

Our paper presents an empirical analysis of entrepreneurial well-being using a large-scale longitudinal household survey from the UK that tracks almost 50,000 individuals across seven waves over the period 2009–2017, as well as a number of…


1242. Transmission Network Investment across National Borders: The Liberalized Nordic Electricity Market

Lars Persson and Thomas Tangerås

The world’s first multinational electricity market was formed with the creation of the Nordic power exchange, Nord Pool. We analyze the incentives to undertake transmission network investment in the context of the liberalized Nordic electricity…


1241. (I Can’t Get No) Job Satisfaction? Differences by Sexual Orientation in Sweden

Lina Aldén, Mats Hammarstedt and Hanna Swahnberg

We present results from a unique nationwide survey conducted in Sweden on sexual orientation and job satisfaction. Our results show that gay men, on average, seem more satisfied with their job than heterosexual men; lesbians appear less satisfied with…


1240. The Geography and Concentration of Authorship in the Top Five: Implications for European Economics

Simon Ek and Magnus Henrekson

We study to what degree authors who publish in the five most prestigious journals in economics have previously published there and in which world region they are based. Al­though still high, the concentration of U.S.-based and previously published…


1239. Regulation and Government Debt

Niclas Berggren and Christian Bjørnskov

Government debt is high in most developed countries, and while it may reflect short-term attempts to kick-start the economy in times of crisis through fiscal stimulus, the longer-term consequences risk being detrimental to investment and growth. This…


1238. Telemedicine and the Welfare State: The Swedish Experience

Mårten Blix and Johanna Jeansson

Sweden combines a vibrant market economy with a large public sector. This combination of public and private also characterizes the country’s comprehensive tax-financed welfare services. More than one-third of primary health care is today produced in…


1237. Exit, Voice and Political Change: Evidence from Swedish Mass Migration to the United States

Mounir Karadja and Erik Prawitz

We study the political effects of mass emigration to the United States in the 19th century using data from Sweden. To instrument for total emigration over several decades, we exploit severe local frost shocks that sparked an initial wave of emigration,…


1236. Credit Ratings and Structured Finance

Jens Josephson and Joel Shapiro

The poor performance of credit ratings of structured finance products in the financial crisis has prompted investigation into the role of credit rating agencies (CRAs) in designing and marketing these products. We analyze a two-period reputation model in…


1235. Self-employed Immigrants and Their Employees: Evidence from Swedish Employer-Employee Data

Mats Hammarstedt and Chizheng Miao

We present a study of immigrant self-employment in Sweden using the recent matched employer-employee data from 2014. We find large variations in self-employment rates among immigrant groups as well as between immigrants with different points for their…


1234. The French Curse? On the Puzzling Economic Consequences of French Colonization

Andreas Bergh and Günther Fink

More than 50 years after independence, the majority of countries in Sub-Saharan Africa remain poor with limited rates of economic growth. One of the most striking features of economic development on the sub-Saharan subcontinent is the remarkably poor…


1233. Gender and Dynastic Political Recruitment

Olle Folke, Johanna Rickne and Daniel M. Smith

Throughout history and across countries, women appear more likely than men to enter politics at the heels of a close relative or spouse. We provide a theoretical explanation for this dynastic bias in gender representation that integrates political…


1232. Customer Discrimination in the Fast Food Market? Experimental Evidence from a Swedish University Campus

Ali Ahmed and Mats Hammarstedt

This paper studies customer discrimination against fictive male and female food truck owners with Arabic names on a Swedish University campus using a web-based experiment. Students at a Swedish university campus were asked to participate in a market…


1231. Allocation of R&D Grants in the Business Sector

Martin Falk and Roger Svensson

The aim of this paper is to provide new empirical evidence on the most crucial determinants of success for firms applying for public R&D grants. Previous studies have been limited to firm level data and mainly tested how firm characteristics affect…


1230. Are Foreign Private Equity Buyouts Bad for Workers?

Martin Olsson and Joacim Tåg

The media often cast foreign private equity firms as villains who gamble with local jobs. We use detailed registry data from Sweden to show that foreign buyouts have not affected workers' labor market outcomes. But domestic buyouts have. They have…


1229. Self-employment and Life Satisfaction among the Elderly: Survey-based Evidence from Sweden

Lina Aldén and Mats Hammarstedt

This paper compares life satisfaction among the elderly (61 years of age or older) who are self-employed, wage-employed or out of the labour force in Sweden with the help of a unique survey. Sweden is interesting since the share of elderly, just as in…


1228. “Post-Truth” Schooling and Marketized Education: Explaining the Decline in Sweden’s School Quality

Magnus Henrekson and Johan Wennström

The Swedish school system suffers from profound problems with teacher recruitment and retention, knowledge decline, and grade inflation. Absenteeism is high, and psychiatric disorders have risen sharply among Swedish pupils in the last ten years. In…


1227. Measuring the Impact of Agricultural Production Shocks on International Trade Flows

Shon Ferguson and Johan Gars

The purpose of this study is to measure the sensitivity of traded quantities and trade unit values to agricultural production shocks. We develop a general equilibrium model of trade in which production shocks in exporting countries affect both traded…


1226. Gender Grading Bias at Stockholm University: Quasi-Experimental Evidence from an Anonymous Grading Reform

Joakim Jansson and Björn Tyrefors

In this paper, we first present novel evidence of grading bias against women at the university level. This is in contrast to previous results at the secondary education level. Contrary to the gender composition at lower levels of education in Sweden, the…


1225. Coups, Regime Transition, and the Dynamics of Press Freedom

Christian Bjørnskov, Andreas Freytag and Jerg Gutmann

This paper explores the dynamics of press freedom around events that threaten or oust the incumbent regime of a country. While democracies on average grant the press more freedom, our theoretical starting point is that democracies and autocracies may have…


1224. Exporting a Bit Faster: The Long-Run Performance of Born Globals in Computing

Shon Ferguson and Magnus Henrekson

Policymakers in several countries have recently taken steps to promote the rapid export expansion of high-tech small- and medium-sized enterprises (SMEs). The goal of these policies has been to create successful export-intensive firms, which are often…


1223. The Long-term Effects of Long Terms: Compulsory Schooling Reforms in Sweden

Martin Fischer, Martin Karlsson, Therese Nilsson and Nina Schwarz

We evaluate the impact on earnings, pensions, and further labor market outcomes of two parallel educational reforms increasing instructional time in Swedish primary school. The reforms extended the annual term length and compulsory schooling by comparable…


1222. The Collaborative Innovation Bloc: A New Mission for Austrian Economics

Niklas Elert and Magnus Henrekson

We argue that scholars in the Austrian tradition of economics should incorporate the notion of a collaborative innovation bloc into their study of spontaneous market order. We demonstrate how successful entrepreneurship depends on an innovation bloc of…


1221. Farm Size, Technology Adoption and Agricultural Trade Reform: Evidence from Canada

W. Mark Brown, Shon Ferguson and Crina Viju

Using detailed census data covering over 40,000 farms in Alberta, Saskatchewan and Manitoba, Canada, we document the vast and increasing farm size heterogeneity, and analyze the role of farm size in adapting to the removal of an export subsidy in…


1220. Long-run Effects of Lottery Wealth on Psychological Well-being

Erik Lindqvist, Robert Östling and David Cesarini

We surveyed a large sample of Swedish lottery players about their psychological well-being and analyzed the data following pre-registered procedures. Relative to matched controls, large-prize winners experience sustained increases in overall life…


1219. Efficiency Gains and Time-savings of Permanent Panels in the WTO Dispute Settlement

Louise Johannesson

The dispute settlement mechanism (DSM) is today the most active dispute resolution forum in the world. However, its success has also led to increased processing time of disputes, which, in turn, increases the cost of using the World Trade Organization…


1218. Entrepreneurial Optimism and Creative Destruction

Lars Persson and Thomas Seiler

We provide empirical evidence that uncertainty (rather than risk) and optimism are distinctive characteristics of high-impact entrepreneurial firms (recently listed firms) relative to old, incumbent firms. Based on this evidence, we construct an…


1217. Trust-Based Evaluation in a Market-Oriented School System

Jonas Vlachos

In Sweden, a trust-based system of school performance evaluation meets a market-oriented school system with liberal entry conditions for voucher-funded private providers. National standardized tests are graded at the local school and what ultimately…


1216. An International Comparison of the Contribution to Job Creation by High-growth Firms

Michael Anyadike-Danes, Carl Magnus Bjuggren, Michel Dumont, Sandra Gottschalk, Werner Hölzl, Dan Johansson, Mika Maliranta, Anja Myrann, Kristian Nielsen and Guanyu Zheng

The basic principle governing the development of the accounting framework is the choice of appropriate comparators. Firstly, when measuring contributions to job creation, we should focus on just job creating firms, otherwise we are summing over…


1215. The (Un)compromise Effect

Mathias Ekström

The current study provides the first experimental test of the compromise effect, i.e. the tendency to choose middle options, in a naturally occurring setting. Simultaneously, I propose and evaluate a novel nudge intended to stimulate active…


1214. Fairness in Winner-Take-All Markets

Björn Bartling, Alexander W. Cappelen, Mathias Ekström, Erik Ø. Sørensen and Bertil Tungodden

The paper reports the first experimental study on people’s fairness views on extreme income inequalities arising from winner-take-all reward structures. We find that the majority of participants consider extreme income inequality generated in…


1213. Choice and Competition in the Welfare State: Home Care as the Ideal Quasi-market

Mats A. Bergman, Henrik Jordahl and Sofia Lundberg

We study a reform by which a standardized model of choice and competition was introduced in tax-financed home care in a majority of Swedish municipalities. The market for home care is of particular interest since it is close to the ideal quasi-market. For…


1212. Exploring Digital Time Measurement in the Public Sector: Labor Productivity and Service Quality in Home Care

Henrik Jordahl and Lovisa Persson

We measure labor productivity in home care using new data from the recent introduction of digital time measurement in Swedish municipalities. By measuring worker utilization (delivered hours as a share of worked hours) we avoid several problems that have…


1211. Simulation and Evaluation of Zonal Electricity Market Designs

Mohammad Reza Hesamzadeh, Pär Holmberg and Mahir Sarfati

Zonal pricing with countertrading (a market-based redispatch) gives arbitrage opportunities to the power producers located in the export-constrained nodes. They can increase their profit by increasing the output in the dayahead market and decrease it in…


1210. Entrepreneurial Export Strategy: The Sooner the Better?

Shon Ferguson, Magnus Henrekson and Louise Johannesson

Policymakers in several countries have recently taken steps to promote the rapid export expansion of small- and medium-sized enterprises (SMEs). The goal of these policies has been to create successful export-intensive startups, which are often referred…


1209. Supply Function Equilibrium over a Constrained Transmission Line II: Multiple Plants and Nodal Price Derivatives

Keith Ruddell

Market power in electricity wholesale markets arises when generators have incentives to mark up their offers above the cost of production. I model a transmission network with a single line. I derive optimality conditions for supply functions for…


1208. Supply Function Equilibrium over a Constrained Transmission Line I: Calculating Equilibria

Keith Ruddell

Competition between oligopolist electricity generators is inhibited by transmission constraints. I present a supply function equilibrium (SFE) model of an electricity market with a single lossless, but constrained, transmission line. The market admits…


1207. Analysts' Disagreement and Investor Decisions

Wolfgang Gick and Alex Weissensteiner

Earning forecasts disclosed by financial analysts are known to be overly optimistic. Since an investor relies on their expertise, the question arises whether he would take analyst recommendations at face value or instead structure consultation with…


1206. How Persistent Is Life Satisfaction? Evidence from European Immigration

Niclas Berggren, Andreas Bergh, Christian Bjørnskov and Shiori Tanaka

This paper asks to what extent life satisfaction among immigrants remains similar to that in their country of origin and to what extent it adapts to that in their country of residence. We employ data from 29,000 immigrants in the European Social Survey to…


1205. Mine, Ours or Yours? Unintended Framing Effects in Dictator Games

Andreas Bergh and Philipp C. Wichardt

This paper reports results from a classroom dictator game comparing the effects of three different sets of standard instructions. As was shown by Oxoby and Spraggon (2008), inducing a feeling of entitlement – one subject earning the endowment…


1204. Non-standard Employment in Sweden

Per Skedinger

In Sweden, as in many other countries, marginal groups tend to be overrepresented in non-standard employment. A decomposition of the employment rate of full-time workers on permanent contracts reveals that non-standard employment contributes to a…


1203. Financial and Institutional Reforms for an Entrepreneurial Society

Claire Economidou, Luca Grilli, Magnus Henrekson and Mark Sanders

In this paper, we introduce a special issue of Small Business Economics on Financial and Institutional Reforms for an Entrepreneurial Society in Europe. There are many reasons for Europe to want to make the transition to a more entrepreneurial society.…


1202. Varieties of Entrepreneurship: Exploring the Institutional Foundations of Different Entrepreneurship Types through ‘Varieties-of-Capitalism’ Arguments

Selin Dilli, Niklas Elert and Andrea M. Herrmann

While entrepreneurship researchers agree that institutions ‘matter’ for entrepreneurship, they also have a rather encompassing understanding of institutions as almost any external factor that influences entrepreneurship. Ultimately, this…


1201. What is the Cost of Privatization for Workers?

Martin Olsson and Joacim Tåg

The world is in the midst of a new wave of privatization, with record dollar amounts raised in both developed and developing countries. Using rich Swedish registry data covering two decades from the mid-1990s, we show that privatizations increased…


1200. Avoiding the Housewife Stigma: Self-Employment as a Female Career Choice

Carl Magnus Bjuggren and Magnus Henrekson

This paper investigates career choices of women who marry high-income men. We find that women married to men in the top of the income distribution are more likely to enter self-employment, which is also associated with a lower income. This can be…


1199. Threatening to Buy: Private Equity Buyouts and Antitrust Policy

Pehr-Johan Norbäck, Lars Persson and Joacim Tåg

Private equity firms (PE firms) have become common owners of established firms in concentrated markets. We show that the threat of a PE acquisition can trigger incumbent mergers in an otherwise mergerstable industry. This can help antitrust authorities…


1198. Stock Market Returns and Consumption

Marco Di Maggio, Amir Kermani and Kaveh Majlesi

This paper employs Swedish data containing security level information on households' stock holdings to investigate how consumption responds to changes in stock market returns. We exploit households’ portfolio weights in previous years as an…


1197. Do Voters Dislike Liberalizing Reforms? New Evidence Using Data on Satisfaction with Democracy

Niclas Berggren and Christian Bjørnskov

Since the early 1980s a wave of liberalizing reforms has swept over the world. While the stated motivation for these reforms has usually been to increase economic efficiency, some critics have instead inferred ulterior motives and a desire to enrich…


1196. A Cross-Country Comparison of Dynamics in the Large Firm Wage Premium

Emanuele Colonnelli, Joacim Tåg, Michael Webb and Stefanie Wolter

We provide stylized facts on the existence and dynamics over time of the large firm wage premium for four countries. We examine matched employer-employee micro-data from Brazil, Germany, Sweden, and the UK, and find that the large firm premium exists in…

Elgar Companion to

Social Capital and Health

Martin Ljunge okt 2018.jpg

Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

About the book

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.

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