Working Papers 2020

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.


1347. Software Development and Innovation ‒ Exploring the Software Shift in Innovation in Swedish Firms

Martin Andersson, Anna Kusetogullari and Joakim Wernberg

Several scholars as well as industry professionals have claimed that there is a “software-biased shift” in the nature and direction of innovation in that software development is a core part of innovation activities in firms across a wide array…


1346. The Effect of Water Filtration on Cholera Mortality

Daniel Knutsson

There is debate among researchers regarding the importance of water filtration in reducing mortality during the epidemiological transition. However, there is limited research on how water filtration affected cholera mortality during the…


1345. Innovative Entrepreneurship as a Collaborative Effort: An Institutional Framework

Niklas Elert and Magnus Henrekson

We demonstrate how successful entrepreneurship depends on a collaborative innovation bloc (CIB), a system of innovation that evolves spontaneously and within which activity takes place through time. A CIB consists of six pools of economic skills from…


1344. Does Precise Case Information Limit Precautionary Behavior? Evidence from COVID-19 in Singapore

Aljoscha Janssen and Matthew Shapiro

Limiting the spread of contagious diseases can involve both government-managed and voluntary efforts. Governments have a number of policy options beyond direct intervention that can shape individuals’ responses to a pandemic and its…


1343. International Trade and Labor Market Integration of Immigrants

Magnus Lodefalk, Fredrik Sjöholm and Aili Tang

We examine if international trade improves labor market integration of immigrants in Sweden. Immigrants participate substantially less than natives in the labor market. However, trading with a foreign country is expected to increase the demand…


1342. Testing Axioms of Revealed Preference in Stata

Marcos Demetry, Per Hjertstrand and Matthew Polisson

This paper introduces the Stata commands checkax, aei, and powers as a bundle within the package rpaxioms. The first command allows the user to test whether consumer demand data satisfy a number of revealed preference axioms at a given…


1341. The Importance of Tacit Knowledge: Dynamic Inventor Activity in the Commercialization Phase

Per Botolf Maurseth and Roger Svensson

Inventors generally know more about their inventions than what is written down in patent applications. Because they possess this tacit knowledge, inventors may need to play an active role when patents are commercialized. We build on Arora (1995) and…


1340. The Individual Welfare Costs of Stay-at-Home Policies

Ola Andersson, Pol Campos-Mercade, Fredrik Carlsson, Florian Schneider and Erik Wengström

This paper reports the results of a choice experiment designed to estimate the private welfare costs of stay-at-home policies during the COVID-19 pandemic. The study is conducted on a large and representative sample of the Swedish population. The…


1339. Aggregate Consumption and Wealth in the Long Run: The Impact of Financial Liberalization

Malin Gardberg and Lorenzo Pozzi

This paper investigates the impact of financial liberalization on the relationship between consumption and total wealth (i.e., the sum of asset wealth and human wealth). We propose a heterogeneous agent framework with incomplete markets where…


1338. The Fatal Conceit: Swedish Education after Nazism

Gabriel Heller Sahlgren and Johan Wennström

In the aftermath of the Second World War, Sweden dismantled an education system that was strongly influenced by German, Neo-Humanist pedagogical principles in favor of a progressive, student-centered system. This article suggests this was in large part…


1337. Chinese Aid to Africa: Distinguishing Features and Local Effects

Ann-Sofie Isaksson and Andreas Kotsadam

Drawing on our recent work on local effects of Chinese development projects in Africa, this review article highlights a number of distinguishing features of Chinese aid, and discusses how these may translate into local aid impacts that differ from those…


1336. Chinese Aid and Local Ethnic Identification

Ann-Sofie Isaksson

Recent empirical evidence suggests that Chinese development finance may be particularly prone to elite capture and patronage spending. If aid ends up in the pockets of political elites and their ethno-regional networks, this may exacerbate ethnic…


1335. What Determines the Capital Share over the Long Run of History?

Erik Bengtsson, Enrico Rubolino and Daniel Waldenström

This paper analyzes the determinants of the labor-capital split in national income for 20 countries since the late 1800s. Our main identification strategy focuses on unique historical quasi-experimental events: i) the introduction of…


1334. Political Failures in Innovation Policy: A Cautionary Note

Anders Kärnä, Johan Karlsson and Erik Engberg

Within the field of innovation studies, researchers have identified several market failures that hamper investment in R&D, innovation and growth in a market economy. Several policies such as government subsidies, tax deductions, soft loans,…


1333. The Ability Gradient in Bunching

Spencer Bastani and Daniel Waldenström

We analyze the relationship between cognitive ability and bunching in the context of a large and salient kink point of the Swedish income tax schedule. Using population-wide register data from the Swedish military enlistment and…


1332. Gender and Climate Action

Niklas Elert and Erik Lundin

It is well-known that men and women differ in their views regarding the severity of climate change, but do they also differ in their support for climate policy and in undertaking climate action? Previous evidence on this question is inconsistent, but…


1331. Economic Freedom and the CO2 Kuznets Curve

Christian Bjørnskov

Politicians and international organisations advocate for increased regulation and government control of industry in order to handle climate change and reduce overall greenhouse gas emissions. However, it remains an open question how economic freedom is…


1330. Do Swedish Schools Discriminate against Children with Disabilities?

Ali Ahmed, Mats Hammarstedt and Karl Karlsson

We present results from a field experiment in which fictitious parents to children with certain types of disabilities, attention deficit hyperactivity disorder (ADHD) and type 1 diabetes mellitus (T1DM), make inquires to Swedish schools about admission…


1329. Minimum Wages and Firm-Level Employment in a Developing Country

Fredrik Sjöholm

The effect of minimum wages on employment is a matter of debate, and the existing empirical literature contains mixed results. One reason for this is the methodological difficulties involved where changes in minimum wages are endogenous to other important…


1328. Homogeneity, Returns to Scale and (Log)Concavity

Per Hjertstrand

This brief note shows that if a production function, f, is quasiconcave, increasing and homogeneous, then f is concave if it displays nonincreasing returns to scale, and f is logconcave if it displays increasing returns to scale.


1327. General Revealed Preference Tests of Weak Separability and Utility Maximization with Incomplete Adjustment

Per Hjertstrand, James L. Swofford and Gerald A. Whitney

We propose more general non-parametric revealed preference tests for weak separability and utility maximization with incomplete adjustment. Hence, these procedures account for a decision maker’s inability to adjust his optimal allocation of the…


1326. CEO Health and Corporate Governance

Matti Keloharju, Samuli Knüpfer and Joacim Tåg

Boards hire and fire CEOs based on imperfect information. Using comprehensive data on 28 cohorts in Sweden, we analyze the role of a potentially important attribute—CEO health—in corporate governance. Boards hire CEOs who are healthier than…


1325. Price Dynamics of Swedish Pharmaceuticals

Aljoscha Janssen

This paper investigates price patterns of off-patent pharmaceuticals in Sweden. I show that price dynamics are dependent on the number of competitors in the market. The price patterns follow predictions from a model of dynamic price competition in which…


1324. Income Elasticities Without Parameters

Per Hjertstrand

This paper proposes a simple non-parametric framework to calculate income elasticities from a data set of observed prices and consumed quantities without having to estimate any parameters. The framework can be applied when the price-quantity data…


1323. Do Corrupt Local Governments Inhibit Entrepreneurship? A Contextual Analysis of Start-Ups in Swedish Municipalities

Emanuel Wittberg and Gissur Erlingsson

Does corruption affect the incentives for potential entrepreneurs to start businesses? The traditional view holds that entrepreneurship is inhibited. However, a few recent studies indicate the contrary, supporting a ‘grease the wheels’…


1322. When Less Is More: Why Limited Entrepreneurship Education May Result in Better Entrepreneurial Outcomes

Niklas Elert, Karolin Sjöö and Karl Wennberg

Entrepreneurship research suggests that entrepreneurship education and training can bridge the gender gap in entrepreneurship, but little empirical research exists assessing the validity and impact of such initiatives. We examine a large…


1321. A Rationalization of the Weak Axiom of Revealed Preference

Victor H. Aguiar, Per Hjertstrand and Roberto Serrano

We offer a rationalization of the weak axiom of revealed preference (WARP) and of the weak generalized axiom of revealed preference (WGARP) for both finite and infinite data sets of consumer choice. We call it maximin rationalization, in which each…


1320. Does a District-Vote Matter for the Behavior of Politicians? A Textual Analysis of Parliamentary Speeches

Andreas Born and Aljoscha Janssen

In most democracies, members of parliament are either elected over a party list or by a district. We use a discontinuity in the German parliamentary system to investigate the causal effect of a district-election on an MP’s conformity with her…


1319. Making a Market: Infrastructure, Integration and the Rise of Innovation

David Andersson, Thor Berger and Erik Prawitz

We exploit exogenous variation arising from the historical rollout of the Swedish railroad network across municipalities to identify the impacts of lowered interaction costs on innovative activity. A network connection led to a surge in local innovation…


1318. ‘Two Gentlemen Sharing’: Rental Discrimination of Same-Sex Couples in Portugal

Filipe Rodrigues Gouveia, Therese Nilsson and Niclas Berggren

We measure and analyze discriminatory behavior against same-sex couples trying to rent an apartment in Portugal. This is the first correspondence field experiment investigating discrimination against this minority group in Portugal, adding to a literature…


1317. Switching Costs, Brand Premia and Behavioral Pricing in the Pharmaceutical Market

Aljoscha Janssen

This article examines the market power of branded prescription drugs faced with generic competition. Using prescription-level and matched socioeconomic panel data of the entire Swedish population between 2010 and 2016, I provide evidence for the key role…


1316. Money for Nothin’ – Digitalization and Fluid Tax Bases

Mårten Blix and Emil Bustos

Technology and digitalization are transforming economic activity, but tax policies are lagging behind. The development also encompasses a broad shift in value-creation, with less emphasis on physical production and more on soft knowledge/intangibles,…


1315. The Role of the Weighted Voting System in Investments in Local Public Education: Evidence from a New Historical Database

Erik Lindgren, Per Pettersson-Lidbom and Björn Tyrefors

In this paper, we analyze how a weighted voting system introduced in 1862, which shifted the distribution of political power from landowners to industrialists at local town meetings, affected investments in local public education. We use an event study…


1314. International Jurisdiction over Standard-Essential Patents

Henrik Horn

Standards often require the use of patented technologies. Holders of standard-essential patents (SEPs) typically commit to make their patents available on "fair, reasonable and non-discriminatory" (FRAND) terms. National competition authorities…


1313. Entrepreneurship Prompts Institutional Change in Developing Economies

Niklas Elert and Magnus Henrekson

Entrepreneurship plays a pivotal role for institutional change and economic development in transition and developing economies. Formal and informal institutions in such countries are often sub-par, but rather than being constrained by them,…

Interdisciplinary European Studies

The European Union and the Return of the Nation State

9783030350048_200x_the-european-union-and-the-return-of-the-nation-state.jpg

This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

About the book

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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.

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In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

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