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.

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. Getting the Facts Right on Born Globals

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 firms, which are often referred to…

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…

Interdisciplinary European Studies

Trust in the European Union in Challenging Times


This is the first book in the Interdisciplinary European Studies collection. This volume provides an interdisciplinary perspective on trust in the EU from the vantage point of political science, law and economics. Lars Oxelheim, Lund University and affiliated to IFN, is one of the authors.


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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