Working Papers 2021

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.

1387. Strategic Reserves versus Market-wide Capacity Mechanisms

Pär Holmberg and Thomas Tangerås

Many electricity markets use capacity mechanisms to support generation owners. Capacity payments can mitigate imperfections associated with “missing money” in the spot market and solve transitory capacity shortages caused by…

1386. Entry Regulations and Product Variety in Retail

Florin Maican and Matilda Orth

This paper estimates a dynamic model of store adjustments in product variety that considers multiproduct service technology to evaluate the impact of entry regulations on variety and long-run profits in Swedish retail. Using rich data on stores…

1385. To Be or Not to Be: The Entrepreneur in Endogenous Growth Theory

Magnus Henrekson, Dan Johansson and Johan Karlsson

We examine the conceptualization of entrepreneurs in neo-Schumpeterian growth theory, which has reintroduced entrepreneurs into mainstream economics. Specifically, we analyze how neo-Schumpeterians relate to the contradiction between the…

1384. Improved Framework Conditions for a More Entrepreneurial, Innovative and Sustainable EU

Niklas Elert and Magnus Henrekson

In the wake of the corona crisis, the European Union must regain lost ground and create more favorable conditions for inclusive and sustainable economic growth. The best way to achieve this goal is by increasing the Union’s innovativeness. This…

1383. Sweden's Energy Investment Challenge

Pär Holmberg and Thomas Tangerås

Sweden faces a major challenge in the next decades because of a projected increase in electricity demand, aging supply infrastructure and the transition to an energy system with a substantial share of weather-dependent production. This paper discusses the…

1382. Artificial Intelligence, Robotics, Work and Productivity: The Role of Firm Heterogeneity

Fredrik Heyman, Pehr-Johan Norbäck and Lars Persson

We propose a model with asymmetric firms where new technologies displace workers. We show that both leading (low-cost) firms and laggard (high-cost) firms increase productivity when automating but that only laggard firms hire more…

1381. Lost Opportunities: Work during High School, Establishment Closures and the Impact on Career

Dagmar Müller

Relying on Swedish linked employer-employee data over a 30-year period, I study the importance of work during high school for graduates’ school-to-work transition and labor market outcomes. I show that employer links established through…

1380. The Sharing Economy: Definition, Measurement and its Relationship to Capitalism

Andreas Bergh, Alexander Funcke and Joakim Wernberg

For the past decade, the sharing economy has not only grown but also expanded to cover a wide variety of different activities across the globe. Despite a lot of research, there is still no agreement on how to define and measure the sharing economy, and no…

1379. Obfuscation and Rational Inattention in Digitalized Markets

Aljoscha Janssen and Johannes Kasinger

This paper studies the behavior of competing firms in a duopoly with rational inattentive consumers. Firms play a sequential game in which they decide to obfuscate their individual prices before competing on price. Probabilistic demand functions are…

1378. Anticipation of COVID-19 Vaccines Reduces Social Distancing

Ola Andersson, Pol Campos-Mercade, Armando N. Meier and Erik Wengström

We show that the anticipation of COVID-19 vaccines reduces voluntary social distancing. In a large-scale preregistered survey experiment with a representative sample, we study whether providing information about the safety, effectiveness, and availability…

1377. The Comparative Impact of Cash Transfers and a Psychotherapy Program on Psychological and Economic Well-being

Johannes Haushofer, Robert Mudida and Jeremy Shapiro

We study the economic and psychological effects of a USD 1076 PPP unconditional cash transfer, a five-week psychotherapy program, and the combination of both interventions among 5,756 individuals in rural Kenya. One year after the…

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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