| 1. |
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| 2. |
- Brannlund, R, et al.
(författare)
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Carbon tax simulations using a household demand model
- 2004
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Ingår i: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 48:1, s. 211-233
-
Tidskriftsartikel (refereegranskat)abstract
- The main objective of this paper is to analyse consumer response and welfare effects due to changes in energy or environmental policy. To achieve this objective we formulate and estimate an econometric model for non-durable consumer demand in Sweden that utilises micro- and macro-data. In the simulations, we consider two revenue neutral scenarios that both imply a doubling of the CO2 tax; one that returns the revenues in the form of a lower VAT and one that subsidise public transport. One conclusion from the simulations is that the CO2 tax has regional distribution effects, in the sense that household living in sparsely populated areas carry a larger share of the tax burden. (C) 2002 Elsevier B.V. All rights reserved.
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| 3. |
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| 4. |
- De Ville, Philippe, et al.
(författare)
-
An insolent founding father
- 1989
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 33:2, s. 494-502
-
Tidskriftsartikel (refereegranskat)
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| 5. |
- Edin, Per-Anders, et al.
(författare)
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Political determinants of budget deficits : Coalition effects versus minority effects
- 1991
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Ingår i: European Economic Review. - 0014-2921 .- 1873-572X. ; 35:8, s. 1597-1603
-
Tidskriftsartikel (refereegranskat)abstract
- This paper reexamines some recent empirical evidence on the hypothesis that institutional arrangements in the political process affect budget deficits. The results of Roubini and Sachs (1989b) are replicated, and sensitivity analysis indicate that their results are robust. However, the main conclusion of Roubini and Sachs, that coalition governments are less capable of budgetary discipline, needs to be modified. A reformulation of their variable representing political cohesion reveals that it captures the effects of minority governments rather than majority coalition governments. The data support the hypothesis that it is harder to negotiate in parliament than within a government.
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| 6. |
- Flodén, Martin
(författare)
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Endogenous monetary policy and the business cycle
- 2000
-
Ingår i: European economic review. - : Elsevier B.V. - 1873-572X .- 0014-2921. ; 44:8, s. 1409-1429
-
Tidskriftsartikel (refereegranskat)abstract
- The correlations and volatilities of real variables seem to be stable over time, but the relation between real and nominal variables is unstable. Presumably, one important factor behind this observation is the nature of money supply. In this paper, I look at a business cycle model where the central bank sets money supply to minimize the volatility of inflation and output. I find that small changes in the central bank's preferences can generate large changes in the derived money supply rule and in correlations between real and nominal variables. Although wages are assumed to be sticky, changes in the money supply rule do not generate any major changes in the behavior of real variables.
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| 7. |
- Fölster, Stefan, et al.
(författare)
-
Growth effects of government expenditure and taxation in rich countries
- 2001
-
Ingår i: European Economic Review. - : Elsevier B.V. - 0014-2921 .- 1873-572X. ; 45:8, s. 1501-1520
-
Tidskriftsartikel (refereegranskat)abstract
- A number of cross-country comparisons do not find a robust negative relationship between government size and economic growth, In part, this may reflect the prediction in economic theory that a negative relationship should exist primarily for rich countries with large public sectors. In this paper an econometric panel study is conducted on a sample of rich countries covering the 1970-1995 period. Extended extreme bounds analyses are reported based on a regression model that tackles a number of econometric issues. Our general finding is that the more the econometric problems are addressed, the more robust the relationship between government size and economic growth appears. Our most complete specifications are robust even according to the stringent extreme bounds criterion.
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| 8. |
- Giannetti, Mariassunta
(författare)
-
The effects of integration on regional disparities : Convergence, divergence or both?
- 2002
-
Ingår i: European economic review. - : Elsevier B.V. - 1873-572X .- 0014-2921. ; 46:3, s. 539-567
-
Tidskriftsartikel (refereegranskat)abstract
- This paper offers an explanation for the coexistence of convergence across countries and the lack thereof at the regional level in the European Union. The model shows that, even if it accelerates growth and brings convergence across countries, the intensification of international knowledge spillovers due to more cross-country interaction may exacerbate within-country regional disparities, if regions with different specialization do not benefit evenly from the exchange of knowledge. The empirical evidence supports the implications of the model. In particular, the data show that regions specialized in advanced sectors at the beginning of the sample period became more similar in terms of per capita income, while regions specialized in traditional sectors lagged.
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| 9. |
- Gottfries, Nils, et al.
(författare)
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Discrimination and Open Unemployment in A Segmented Labor-Market
- 1995
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Ingår i: European Economic Review. - 0014-2921 .- 1873-572X. ; 39:1, s. 1-15
-
Tidskriftsartikel (refereegranskat)abstract
- Jobs in the primary sector require firm-specific training, with wages determined as a result of bargaining. Firms pay for the training and since they are imperfectly informed about worker productivity, they test workers before hiring them. The secondary sector is competitive. Taking a job in the secondary sector signals low productivity, and therefore workers in the secondary sector are unable to get jobs in the primary sector. Open unemployment coexists with unfilled vacancies for low wage jobs.
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| 10. |
- Gottfries, Nils, 1952-, et al.
(författare)
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Nominal wage contracts and the persistent effects of monetary policy
- 1998
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Ingår i: European Economic Review. - 0014-2921 .- 1873-572X. ; 42:2, s. 207-223
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Tidskriftsartikel (refereegranskat)abstract
- We consider an efficiency wage model where wages affect turnover and firms choose optimal labor contracts under uncertainty about demand and productivity. We show that there may be an equilibrium with nominal wage contracts where monetary shocks affect output. Furthermore, monetary shocks have persistent effects on output because the previous state of the labor market affects the reemployment probability of quitting workers. Persistence increases if workers have bargaining power. With endogenous policy, a credibility problem arises naturally in the model. Equilibrium inflation increases with persistence but decreases with the natural rate of unemployment for given persistence.
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| 11. |
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| 12. |
- Goyal, Sanjeev, et al.
(författare)
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The political economy of regionalism
- 2004
-
Ingår i: European Economic Review. - Amsterdam : Elsevier. - 0014-2921 .- 1873-572X. ; 48:3, s. 563-593
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Tidskriftsartikel (refereegranskat)abstract
- We examine the incentives of regions to unite and separate. Separation allows for greater influence over the nature of political decision making while unification allows regions to exploit economies of scale in the provision of government. Our paper explores the influence of size, location and the diversity within regions in shaping this trade-off. We then examine the way in which alternative political institutions aggregate regional preferences and thereby define the number of countries.
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| 13. |
- Gustavsson Tingvall, Patrik, et al.
(författare)
-
Technology, resource endowments and international competitiveness
- 1999
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Ingår i: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 43:8, s. 1501-1530
-
Tidskriftsartikel (refereegranskat)abstract
- The paper evaluates the impact of technology together with resource endowments, factor prices and economies of scale on international competitiveness in OECD countries. Knowledge capital stocks are obtained by cumulating R&D expenditure. Results show that competitiveness is determined not only by the R&D activity of the representative firm, but also by total R&D in the domestic industry as well as economywide stocks of knowledge, indicating the presence of local externalities. Competitiveness is also affected by factor prices and resource endowments as well as scale economies and learning by doing. Further results point to the importance of economies of scale in R&D internal to the firm, of the degree of openness for the capacity to utilize global spillovers and of investment for introduction of embodied technical progress. Finally, the R&D impact is higher in high- and medium- than in low-tech industries.
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| 14. |
- Mäler, Karl-Göran
(författare)
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Development, ecological resources and their management: A study of complex dynamic systems
- 2000
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Ingår i: European economic review. - : Elsevier B.V. - 1873-572X .- 0014-2921. ; 44:4, s. 645-665
-
Tidskriftsartikel (refereegranskat)abstract
- Human well-being depends to a large extent on services provided by ecological systems. In poor countries, this dependence is more transparent than in industrialised countries where the dependence is more indirect. Effective management of these systems requires a good understanding of their properties and in particular a knowledge of the dynamics of the systems.In the article, the dynamics of one “simple” system is analysed economically. The system is a lake and the interaction between the run-off of nutrients into the lake and the growth of either algae (eutrophication in lakes in northern Europe and North America) or water hyacinths (in lakes in southern and eastern Sfrica) is studied. It turns out that the dynamics exhibit bifurcation points so that there are two basins of attraction. If the system flips to one basin and it is regarded desirable to return to the other basin, there will be hysteresis. Assuming that there are different users of the lake, a differential game is constructed that captures the strategic interests of the users. The resulting equilibrium shows first the conventional negative externality that will force the system to a different basin od attraction. Finally, we investigate the use of a tax for bringing back the system to a Pareto optimum.
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| 15. |
- Persson, Joakim, 1961-
(författare)
-
Convergence across the Swedish counties, 1911–1993
- 1997
-
Ingår i: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 41:9, s. 1835-1852
-
Tidskriftsartikel (refereegranskat)abstract
- This paper finds strong and robust evidence of convergence in per capita income across the twenty-four Swedish counties, 1911–1993. In contrast to most previous studies on regional convergence this study adjusts incomes to account for regional differences in the cost of living. The main conclusion is that using adjusted incomes as opposed to non-adjusted incomes does not qualitatively change the results on convergence for the Swedish counties. However, a quantitative difference is that estimated speeds of convergence are higher and the standard deviation of the log of per capita income is lower when adjusted incomes are used, which is consistent with cross-country evidence.
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| 16. |
- Svaleryd, Helena, et al.
(författare)
-
Financial markets, the pattern of industrial specialization and comparative advantage: Evidence from OECD countries
- 2005
-
Ingår i: European Economic Review. - : Elsevier: 24 months. - 0014-2921 .- 1873-572X. ; 49:1, s. 113-144
-
Tidskriftsartikel (refereegranskat)abstract
- Due to underlying technological and organizational differences, industries differ in their need for external finance. Since services provided by the financial sector are largely immobile across countries, the pattern of industrial specialization should be influenced by the level of financial development. Among OECD countries we find a strong causal effect of the financial sector on industrial specialization. Further, the financial sector is a source of comparative advantage in a way consistent with the Hecksher–Ohlin–Vanek model. Results are also presented on which aspects of financial systems are important for specialization and comparative advantage.
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| 17. |
- Agell, Jonas, et al.
(författare)
-
Growth effects of government expenditure and taxation in rich countries : A comment
- 2006
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 50:1, s. 211-218
-
Tidskriftsartikel (refereegranskat)abstract
- Fölster and Henrekson (European Economic Review 45 (2001), 1501–1520) argue that “...the more the econometric problems that are addressed, the more robust the relationship between government size and economic growth appears”. But in failing to control for simultaneity and in ignoring issues of sample-selection bias, the regressions reported by Fölster/Henrekson are flawed. Using theoretically valid instruments, we find that the estimated partial correlation between size of the public sector and economic growth is statistically insignificant and highly unstable across specifications. Moreover, since instruments are weak, all hypothesis tests are unreliable. We conclude that cross-country growth regressions are unlikely to come up with a reliable answer to the question of the growth effects of government spending and taxation.
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| 18. |
- Akay, Alpaslan, 1975, et al.
(författare)
-
Purchasing-Power-Parity and the Saving Behavior of Temporary Migrants
- 2021
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 134
-
Tidskriftsartikel (refereegranskat)abstract
- How does saving behavior of immigrants respond to changes in purchasing power parity between the source and host countries? We examine this question by building a theoretical model of joint return-migration and saving decisions of temporary migrants and then test its implications by using data from the German Socioeconomic Panel on immigrants from 92 source countries. As implied by our theoretical model, we find that the saving rate increases in the nominal exchange rate but decreases in the source-country price level and that the absolute magnitude of both relationships increases as the time to retirement becomes shorter. At the median level of years to retirement, the absolute values of the elasticity of savings with respect to the nominal exchange rate and with respect to the source-country price level are both close to unity. Moreover, as we gradually restrict the sample to individuals with stronger return intentions, the estimated magnitudes become larger and their statistical significance higher.
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| 19. |
- Albrecht, James, et al.
(författare)
-
The career dynamics of high-skilled women and men : Evidence from Sweden
- 2018
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 105, s. 83-102
-
Tidskriftsartikel (refereegranskat)abstract
- In this paper, we use matched worker-firm register data from Sweden to examine the career dynamics of high-skill women and men. Specifically, we track wages for up to 20 years among women and men born in the years 1960-70 who completed a university degree in business or economics. These women and men have similar wages and earnings at the start of their careers, but their career paths diverge substantially as they age. These men and women also have substantial differences in wage paths associated with becoming a parent. We look at whether firm effects account for the differences we observe between women's and men's wage profiles. We document differences between the firms where men work and those where women work. However, a wage decomposition suggests that these differences in firm characteristics play only a small role in explaining the gender log wage gap among these workers. We then examine whether gender differences in firm-to-firm mobility help explain the patterns in wages that we see. Men and women both exhibit greater mobility early in their careers, but there is little gender difference in this firmto-firm mobility. We find that the main driver of the gender difference in log wage profiles is that men experience higher wage gains than women do both as switchers and as stayers.
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| 20. |
- Albrecht, Konstanze, et al.
(författare)
-
Updating, self-confidence, and discrimination
- 2013
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 60, s. 144-169
-
Tidskriftsartikel (refereegranskat)abstract
- In this laboratory experiment, we show that people incorporate irrelevant group information when evaluating others. Individuals from groups that perform badly on average receive low evaluations, even when it is known that the individuals themselves perform well. This group-bias occurs both in a gendered setup, where women form the worse performing group, and in a non-gendered setup. The type of discrimination that we identify is neither taste-based nor statistical; it is rather due to conservatism in updating beliefs, and is even more pronounced among women. Furthermore, self-confident men overvalue male performers. When our data is used to simulate a job promotion ladder, we observe that women are driven out quickly.
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| 21. |
- Andersen, Steffen, et al.
(författare)
-
Discounting behavior : A reconsideration
- 2014
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Ingår i: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 71, s. 15-33
-
Tidskriftsartikel (refereegranskat)abstract
- We re-evaluate the theory, experimental design and econometrics behind claims that individuals exhibit non-constant discounting behavior. Theory points to the importance of controlling for the non-linearity of the utility function of individuals, since the discount rate is defined over time-dated utility flows and not flows of money. It also points to a menagerie of functional forms to characterize different types of non-constant discounting behavior. The implied experimental design calls for individuals to undertake several tasks to allow us to identify these models, and to several treatments such as multiple horizons and the effect of allowing for a front end delay on earlier payments. The implied econometrics calls for structural estimation of th`e theoretical models, allowing for joint estimation of utility functions and discounting functions. Using data collected from a representative sample of 413 adult Danes in 2009, we draw surprising conclusions. Assuming an exponential discounting model we estimate discount rates to be 9% on average. We find no evidence to support quasi-hyperbolic discounting or "fixed cost" discounting, and only modest evidence to support other specifications of non-constant discounting. Furthermore, the evidence for non-constant discounting, while statistically significant, is not economically significant in terms of the size of the estimated discount rates. We undertake extensive robustness checks on these findings, including a detailed review of the previous, comparable literature.
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| 22. |
- Balafoutas, L., et al.
(författare)
-
Equality, equity and incentives: An experiment
- 2013
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 60, s. 32-51
-
Tidskriftsartikel (refereegranskat)abstract
- We study a fundamental conflict in economic decision-making, the trade-off between equality, equity and incentives, in a new experimental game that nests a voluntary contributions mechanism in a broader spectrum of incentive schemes. In a 2×2 design, we let subjects either vote on or exogenously encounter incentive settings while assigned unequal endowments are either task-determined or random. We find that earned endowments lead to less support for redistribution and less cooperation. Subjects' voting is influenced by egalitarian and equity concerns, in addition to self-interest. Cooperation rates respond rather continuously to incentives.
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| 23. |
- Balleer, Almut, et al.
(författare)
-
Does short-time work save jobs? A business cycle analysis
- 2016
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 84, s. 99-122
-
Tidskriftsartikel (refereegranskat)abstract
- In the Great Recession most OECD countries used short-time work (publicly subsidized working time reductions) to counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important distinction to be made: while the rule-based component of short-time work is a cost-efficient job saver, the discretionary component is completely ineffective. In a case study for Germany, we use the rich data available to combine micro- and macroeconomic evidence with macroeconomic modeling in order to identify, quantify and interpret these two components of short-time work.
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| 24. |
- Berg, Heléne
(författare)
-
Politicians' payments in a proportional party system
- 2020
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 128
-
Tidskriftsartikel (refereegranskat)abstract
- Are there monetary returns to politics? This question is approached in this paper, as one of few to quantify the monetary returns to holding political office in a country with proportional representation system. I apply a difference-in-difference setting with a carefully chosen control group to rich data on candidates to the Swedish national parliament. Both shortand long-run effects of being elected on different types of income are estimated. Results show that, yes, mostly thanks to relatively high remuneration while still in office, politics can yield positive monetary returns. In the long-run however, the effect is instead compositional in the sense that ex-politicians receive more pension income and work less.
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| 25. |
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| 26. |
- Bietenbeck, Jan, et al.
(författare)
-
Tuition Fees and Educational Attainment
- 2023
-
Ingår i: European Economic Review. - : Elsevier BV. - 1873-572X .- 0014-2921. ; 154
-
Tidskriftsartikel (refereegranskat)abstract
- Following a landmark court ruling in 2005, more than half of Germany's universities started charging tuition fees, which were later abolished in a staggered manner. We exploit the fact that even students who were already enrolled had to start paying fees. We show that fees increase study effort and degree completion among these students. However, fees also decrease first-time university enrollment among high school graduates. Combining this enrollment impact with the effect on completion, we find that fees around the zero-price margin have only little effect on overall educational attainment. We conclude by discussing policies targeting the separate effect margins of fees and caution against a general abolition.
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| 27. |
- Bingley, Paul, et al.
(författare)
-
Employer Pay Policies, Public Transfers and the Retirement Decisions of Men and Women in Denmark
- 2004
-
Ingår i: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 48:1, s. 181-200
-
Tidskriftsartikel (refereegranskat)abstract
- The empirical retirement literature measures individual responses to variations in income flows due to public transfers, private individual or employer-provided pensions. We estimate a model accounting for the incentive effects from these sources. A dynamic structural model is extended to allow both individual and employer heterogeneity. This is applied to a Danish matched panel of workers and establishments, spanning a period of reforms to a public early retirement programme. Employer-specific compensation is found to be an important determinant of work and retirement income flows. Employer effects on retirement age are only found among sub-samples where access to public transfers is limited.
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| 28. |
- Bisin, Alberto, et al.
(författare)
-
Bend it like Beckham : Ethnic identity and integration
- 2016
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 90, s. 146-164
-
Tidskriftsartikel (refereegranskat)abstract
- We propose a theoretical framework to study the determinants of ethnic and religious identity along two distinct motivational processes: cultural distinction and cultural conformity. Under cultural conformity, ethnic identity is reduced by neighborhood integration, which weakens group loyalties and prejudices. On the contrary, under cultural distinction, ethnic minorities are more motivated in retaining their own distinctive cultural heritage the more integrated are the neighborhoods where they reside and work. Using data on ethnic preferences and attitudes provided by the Fourth National Survey of Ethnic Minorities in the UK we find evidence that might be consistent with intense ethnic and religious identity mostly formed as a cultural distinction mechanism. Consistently, we document that ethnic identities might be more intense in mixed than in segregated neighborhoods.
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| 29. |
- Bisin, Alberto, et al.
(författare)
-
Formation and persistence of oppositional identities
- 2011
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 55:8, s. 1046-1071
-
Tidskriftsartikel (refereegranskat)abstract
- We develop a dynamic model of identity formation that explains why ethnic minorities may choose to adopt oppositional identities (i.e. some individuals may reject or not the dominant culture) and why this behavior may persist over time. We first show that the prevalence of an oppositional culture in the minority group cannot always be sustained in equilibrium. Indeed, because the size of the majority group is larger, there is an imposed process of exposition to role models from the majority group that favors the diffusion of mainstream values in the minority community. In spite of this, an oppositional culture in the minority group can nevertheless be sustained in steady state if there is enough cultural segmentation in terms of role models, or if the size of the minority group is large enough, or if the degree of oppositional identity it implies is high enough. We also demonstrate that the higher the level of harassment and the number of racist individuals in the society, the more likely an oppositional minority culture will emerge. We finally show that ethnic identity and socialization effort can be more intense in mixed rather than segregated neighborhoods.
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| 30. |
- Braunerhjelm, Pontus, 1953-, et al.
(författare)
-
Labour market mobility, knowledge diffusion and innovation
- 2020
-
Ingår i: European Economic Review. - : Elsevier B.V.. - 0014-2921 .- 1873-572X. ; 123
-
Tidskriftsartikel (refereegranskat)abstract
- Utilising a unique Swedish matched employer–employee dataset, which has been pooled with firm-level patent application data, we provide new evidence that knowledge workers’ mobility has a positive and strongly significant impact on firm innovation output, as measured by firm patent applications. The effect is statistically and economically highly significant for knowledge workers who have previously worked in a patenting firm (the learning-by-hiring effect), whereas only limited impact could be detected for firms losing knowledge workers (the learning-by-diaspora effect). No effects were detected for inexperienced university graduates. Finally, the effect is more pronounced when the joining worker originates from within the same region. © 2020 Elsevier B.V.
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| 31. |
- Brock, William, et al.
(författare)
-
Spatial climate-economic models in the design of optimal climate policies across locations
- 2014
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 69, s. 78-103
-
Tidskriftsartikel (refereegranskat)abstract
- We couple a one-dimensional energy balance climate model with heat transportation across latitudes, with an economic growth model. We derive temperature and damage distributions across locations and optimal taxes on fossil fuels which, in contrast to zero-dimensional Integrated Assessment Models, account for cross latitude externalities. We analyze the impact of welfare weights on the spatial structure of optimal carbon taxes and identify conditions under which these taxes are spatially nonhomogeneous and are lower in latitudes with relatively lower per capita income populations. We show the way that heat transportation affects local economic variables and taxes, and locate sufficient conditions for optimal mitigation policies to have rapid ramp-up initially and then decrease over time.
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| 32. |
- Broer, Tobias
(författare)
-
The home bias of the poor : Foreign asset portfolios across the wealth distribution
- 2017
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 92, s. 74-91
-
Tidskriftsartikel (refereegranskat)abstract
- This paper documents how the share of foreign stocks in US household portfolios rises with the ratio of financial wealth to non-financial income. This is both because wealthier households are more likely to participate in foreign asset markets, and because portfolio shares of participants increase with financial wealth but decrease with non-financial income. A simple, standard two-country general equilibrium model shows that hedging of terms of trade movements and non-financial income risk produces non-trivial heterogeneity in portfolios across the wealth and income distribution within countries that is qualitatively in line with this evidence.
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| 33. |
- Chen, Daniel L., et al.
(författare)
-
Non-confrontational extremists
- 2023
-
Ingår i: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 157
-
Tidskriftsartikel (refereegranskat)abstract
- In many contexts individuals are subject to norms and decisions they disagree with ideologically. What is the effect of regularly being in an ideological minority on the propensity to confront majority norms and decisions? We study this in an ideologically-salient field setting - US appeals courts - using exogenous predictors of ideology and random assignment of judges. We find that ideological interaction silences extremists: Judges who are ideologically extreme relative to their peers are less confrontational - dissent less often - than other judges, despite shaping case outcomes the least. Considering many mechanisms, we find that a model of peer pressure where agents perceive concave ideological costs can explain the observations.
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| 34. |
- Davidson, Carl, et al.
(författare)
-
Global Engagement and the Occupational Structure of Firms
- 2017
-
Ingår i: European Economic Review. - : Elsevier BV. - 1873-572X .- 0014-2921. ; 100, s. 273-292
-
Tidskriftsartikel (refereegranskat)abstract
- Global engagement can impact firm organization and the occupations firms need. We use a simple task-based model of the firm's choice of occupational inputs to examine how that choice varies with global engagement. We reveal a robust and causal relationship between global engagement and the skill mix of occupations within firms, using Swedish matched employer-employee data that link firms and the labor force for 1997–2005. Taking an instrumental variable approach, we find that increased export shares (driven by higher world import demand) skew the labor mix more toward high-skill occupations. Our results suggest that global engagement may require firms to employ more skilled labor to undertake complex tasks embodied in international businesses, which have further implications for the demand for specific occupational skills and overall wage dispersion.
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| 35. |
- Davidson, Carl, et al.
(författare)
-
Globalization, the jobs ladder and economic mobility
- 2020
-
Ingår i: European Economic Review. - : Elsevier BV. - 1873-572X .- 0014-2921. ; 127
-
Tidskriftsartikel (refereegranskat)abstract
- Globalization affects the mix of jobs available in an economy and the rate at which workers gain skills. We develop a model in which firms differ in terms of productivity and workers differ in skills, and use the model to examine how globalization affects the wage distribution and the career path of workers as they move up the jobs ladder. We calibrate the model using many of the same parameters and targeting the same moments of the US economy as Melitz and Redding (2015) and then investigate the impact of globalization. Our results indicate that although falling trade costs results in greater wage inequality, it also leads to a wider path up the jobs ladder and less time spent in entry level jobs.
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| 36. |
- Deschamps, Pierre, et al.
(författare)
-
Labor mobility and racial discrimination
- 2021
-
Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 135
-
Tidskriftsartikel (refereegranskat)abstract
- We examine the effect of labor mobility constraints on racial wage discrimination. We show that when monopsony power is low because of relaxed labor mobility constraints, firms cannot act on their prejudice and discrimination disappears. This prediction is taken to the data by using an exogenous mobility shock on the European football labor market. The Bosman ruling lifted restrictions on European player mobility in 1995. Exploiting racial differences in a panel of top English clubs, we compare the pre- and post-Bosman ruling market. We find evidence that wage discrimination disappears only for workers whose mobility constraints have been lifted.
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| 37. |
- Dijk, Oege, et al.
(författare)
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Rank matters-The impact of social competition on portfolio choice
- 2014
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 66, s. 97-110
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Tidskriftsartikel (refereegranskat)abstract
- Tournament incentives' schemes have been criticized for inducing excessive risk-taking among financial market participants. In this paper we investigate how relative performance-based incentive schemes and status concerns for higher rank influence portfolio choice in laboratory experiments. We find that both underperformers and over-performers adapt their portfolios to their current relative performance, preferring either positively or negatively skewed assets, respectively. Most importantly, these results hold both when relative performance is instrumental for higher payoffs in a tournament and when it is only intrinsically motivating and not payout-relevant. We find no effects when no relative performance information is given. © 2013 Elsevier B.V.
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| 38. |
- Ekholm, Karolina, et al.
(författare)
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Relative wages and trade-induced changes in technology
- 2005
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Ingår i: European Economic Review. - : Elsevier B.V. - 1873-572X .- 0014-2921. ; 49:6, s. 1637-1663
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Tidskriftsartikel (refereegranskat)abstract
- We develop a model where trade liberalization leads to skill-biased technological change, which in turn raises the relative return to skilled labor. When firms get access to a larger market, the relative profitability of different technologies changes in favor of the more skill-intensive technology. As the composition of firms changes to one with predominantly skill-intensive firms, the relative demand for skilled labor increases. This way, we establish a link between trade, technology and relative returns to skilled and unskilled labor.
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| 39. |
- Elinder, Mikael, et al.
(författare)
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Promises, policies and pocketbook voting
- 2015
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Ingår i: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 75, s. 177-194
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Tidskriftsartikel (refereegranskat)abstract
- Do voters respond to political parties' promises or to their past actions? We use a suitable sequence of events in Swedish politics to provide the first answer to this question. In the 1994 election campaign the Social Democrats proposed major cuts in transfers to parents with young children, whereas in the 1998 campaign they promised to increase transfers. The Social Democrats won both elections and delivered on both promises. Using voting among parents with slightly older children as counterfactual, we find that voters with young children responded markedly to economic promises rather than to implemented policies.
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| 40. |
- Enflo, Kerstin, et al.
(författare)
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Did Globalization Drive Convergence? Identifying Cross-Country Growth Regimes in the Long Run
- 2011
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Ingår i: European Economic Review. - : Elsevier BV. - 1873-572X .- 0014-2921. ; 55:6, s. 832-844
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Tidskriftsartikel (refereegranskat)abstract
- This paper is the first to apply a finite mixture model to a sample of 64 nations to endogenously analyze the cross-country growth behavior over the period 1870-2003. Results show that growth patterns were segmented in two worldwide regimes, the one characterized by convergence in per capita income, and the other by divergence. Interestingly, when three historical epochs are distinctly analyzed, in order to investigate the empirical link between globalization and convergence, the dynamics which dominated over the whole period seem to have emerged only during the post-1950 years. In contrast, the First Global Wave was marked by persistent heterogeneities.
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| 41. |
- Engström, Per, et al.
(författare)
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Income underreporting among the self-employed : a permanent income approach
- 2017
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 92, s. 92-109
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Tidskriftsartikel (refereegranskat)abstract
- The consumption based method to estimate underreporting among self-employed, introduced by Pissarides andWeber (1989), is one of the workhorses in the empirical literature on tax evasion/avoidance. We show that failure to account for transitory income fluctuations in current income may overestimate the degree of underreporting by around 40 percent. Previous studies typically use instrumental variable methods to address the issue. In contrast, our access to registry based longitudinal income measures allows a direct approach based on more permanent income measures. This also allows us to evaluate the performance of a list of instruments widely used in the previous literature. Our analysis shows that capital income is the most suitable instrument in our application, while education and housing related measures do not seem to satisfy the exclusion restrictions.
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| 42. |
- Erikson, Robert, et al.
(författare)
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Social class, family background, and intergenerational mobility : A comment on Mcintosh and Munk
- 2009
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 53:1, s. 118-120
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Tidskriftsartikel (refereegranskat)abstract
- McIntosh and Munk claim that the class schema developed by Erikson and Goldthorpe lacks validity and should not be taken as a basis for studies of intergenerational social mobility. Their paper is founded on a serious misconception of why the schema is in fact used by sociologists in mobility research and, for this reason, their test of its validity is essentially misdirected. In addition, the test itself is not carried out in an appropriate way nor, it would seem, with data of adequate quality.
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| 43. |
- Escobar, Sebastian, et al.
(författare)
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Giving to the children or the taxman? : Lessons from a Swedish inheritance tax loophole
- 2023
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Ingår i: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 153
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Tidskriftsartikel (refereegranskat)abstract
- Wealth transfer tax systems based on inheritances and inter vivos gifts, rather than estates, allow donors to shift wealth among potential recipients with the goal of minimizing tax burdens. However, tax minimization often requires the donor to give up control over wealth if the transfers are made as inter vivos. Usually, such behavior is difficult to analyze as many potential heirs and many different tax schedules are involved. In this article, we study a simple setting that allows us to obtain transparent and credible evidence of inheritance tax responses. Swedish heirs could easily lower their inheritance tax bills to zero by giving part of the inheritance to their children. Using detailed administrative data, we show that many heirs tax minimized in a precise fashion. Still, among those inheriting just above the exemption, only about a half avoided the tax. Preferences for holding wealth and information seem to play major roles. Our findings have general policy relevance, because similar (but more complex) tax avoidance strategies can be used to avoid any inheritance tax.
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| 44. |
- Forslid, Rikard, et al.
(författare)
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On the development strategy of countries of intermediate size an analysis of heterogeneous firms in a multi region framework
- 2012
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 56:4, s. 747-756
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Tidskriftsartikel (refereegranskat)abstract
- This paper compares two policies: trade cost reduction and firm relocation cost reduction using a three-country version of a heterogeneous-firms geography and trade model, where the three countries have different market (population) sizes. We show how the effects of the two policies differ, in particular for the country of intermediate size. Unless the intermediate country is very small, in a relative sense, it will gain industry when relocation costs are reduced, but lose industry when trade costs are reduced. The smallest country loses industry in both cases, but only experiences lower welfare in the case of lower relocation costs. Thus, the ranking of the policies from the point of view of the two small and intermediate countries tends to be the opposite.
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| 45. |
- Freier, Ronny, et al.
(författare)
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Do parties matter? Estimating the effect of political power in multi-party systems
- 2015
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 80, s. 310-328
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Tidskriftsartikel (refereegranskat)abstract
- When there are more than two parties, policy outcomes are typically the result of a bargaining process. We investigate whether changes in political power for various parties have an effect on tax policies. We use an instrumental variable approach where close elections provide the exogenous variation in our variable of interest: voting power. In order to isolate close elections in a proportional election system, we develop a new simulation algorithm. Using data from German municipalities in the state of Bavaria, our estimation results suggest that political power does matter for policies. Somewhat surprisingly, the center-left party SPD is found to lower all three locally controlled taxes, whereas The Greens increase both property taxes considerably. These results remain robust across a range of specifications. Our partisan effect for the SPD is also confirmed by a simple regression discontinuity estimation using mayoral elections.
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| 46. |
- Fölster, Stefan, et al.
(författare)
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Growth effects of government expenditure and taxation in rich countries : A reply
- 2006
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 50:1, s. 219-221
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Tidskriftsartikel (refereegranskat)abstract
- gell et al. (2005) criticise our earlier findings (Folster and Henrekson 2001) of a robust negative relationship between government size and economic growth for an extended sample of rich countries. In this short paper it is argued that their critique is unfounded. Most importantly, the critique does not deal with the main result of the original study, namely that the most complete specifications for assessing the relationship between government expenditure and growth in rich countries are robust even according to stringent extreme bounds criteria.
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| 47. |
- Gaigné, Carl, et al.
(författare)
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Agglomeration, city size and crime
- 2015
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 80, s. 62-82
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Tidskriftsartikel (refereegranskat)abstract
- This paper analyzes the relationship between crime and agglomeration where the land, labor, product, and crime markets are endogenously determined. Our main theoretical findings are the following: (i) better accessibility to jobs decreases crime in the short run but may increase crime in the long run; (ii) the per-capita crime rate increases with city size; (iii) when allowing for endogenous policing, lower commuting costs make the impact of police on crime more efficient.
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| 48. |
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| 49. |
- Goerg, Sebastian J., et al.
(författare)
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Norm violations and behavioral spillovers : Evidence from the lab and the field
- 2024
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Ingår i: European Economic Review. - : Elsevier. - 0014-2921 .- 1873-572X. ; 166
-
Tidskriftsartikel (refereegranskat)abstract
- This paper explores the contagion effects of norm-violating behavior across decision situations. Through a series of laboratory and field experiments, we empirically establish the conditions under which norm-breaking behavior in one decision situation leads individuals who observe this to violate norms in other, distinct decision situations. Our laboratory findings show that these spillover effects are more pronounced when the norms underlying the decision situations are perceived to be similar. However, spillovers can also affect decision situations governed by relatively dissimilar norms if the observers of norm violations have had the opportunity to first violate the same norm as the observed violator themselves. In an accompanying field experiment, we underscore the economic importance of norm similarity for spillover effects. When workers are exposed to information about celebrities evading taxes, they exhibit significantly higher rates of workplace theft than those in the control group, yet this exposure does not negatively affect work morale.
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| 50. |
- Gonzalez-Eiras, Martin, et al.
(författare)
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Ageing, government budgets, retirement, and growth
- 2012
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Ingår i: European Economic Review. - : Elsevier BV. - 0014-2921 .- 1873-572X. ; 56:1, s. 97-115
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Tidskriftsartikel (refereegranskat)abstract
- We analyze the short and long-run effects of demographic ageing - increased longevity and reduced fertility - on per-capita growth. The OLG model captures direct effects, working through adjustments in the savings rate, labor supply, and capital deepening, and indirect effects, working through changes of taxes, government spending components and the retirement age in politico-economic equilibrium. Growth is driven by capital accumulation and productivity increases fueled by public investment. The closed-form solutions of the model predict taxation and the retirement age in OECD economies to increase in response to demographic ageing and per-capita growth to accelerate. If the retirement age was held constant, the growth rate in politico-economic equilibrium would essentially remain unchanged, due to a surge of social-security transfers and crowding out of public investment.
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