Working Paper No. 1245

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

Published: November 6, 2018Pages: 74Keywords: Family firms; Foundations; High-impact entrepreneurship; Owner; TaxationJEL-codes: D31; H32; K34; L26; N23; O43; P12; P14

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 purpose of this study is threefold. First, we describe the evolution of tax rules for private foundations in Sweden between 1862 and 2018. Second, we calculate the marginal effective tax rate on capital income. Third, we examine the incentives to use private foundations as a means for corporate control by comparing the taxation of private foundations and of high-impact entrepreneurs. Tax incentives help explain why economically significant private foundations were founded between World War I and the 1960s.​

Mikael Stenkula

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Ph: +46 8 665 4530
Mob: +46 73 844 18 78
mikael.stenkula@ifn.se

Niklas Wykman

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Ph: +46 70 538 2956
niklas.wykman@gmail.com

Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

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