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.

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 unobserved attribute—CEO health—in corporate governance. We find CEOs are significantly…

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


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


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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