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  • 1. Abraham, Arpad
    et al.
    Koehne, Sebastian
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. CESifo, Germany.
    Pavoni, Nicola
    Optimal income taxation when asset taxation is limited2016In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 136, p. 14-29Article in journal (Refereed)
    Abstract [en]

    Several frictions restrict the government's ability to tax assets. First, it is very costly to monitor trades on international asset markets. Second, agents can resort to nonobservable low-return assets such as cash, gold or foreign currencies if taxes on observable assets become too high. This paper shows that limitations in asset taxation have important consequences for the taxation of labor income. We study a simple dynamic moral hazard model of social insurance with observable and nonobservable saving decisions. We find that optimal labor income taxes become less progressive when the ability to tax savings is limited.

  • 2.
    Baltrunaite, Audinga
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Bello, Piera
    Casarico, Alessandra
    Profeta, Paola
    Gender quotas and the quality of politicians2014In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 118, p. 62-74Article in journal (Refereed)
    Abstract [en]

    We analyze the effects of the introduction of gender quotas in candidate lists on the quality of elected politicians, as measured by the average number of years of education. We consider an Italian law which introduced gender quotas in local elections in 1993, and was abolished in 1995. As not all municipalities went through elections during this period, we identify two groups of municipalities and use a Difference in differences estimation. We find that gender quotas are associated with an increase in the quality of elected politicians, with the effect ranging from 0.12 to 0.24 years of education. This effect is due not only to the higher number of elected women, who are on average more educated than men, but also to the lower number of low-educated elected men. The positive effect on quality is confirmed when we measure the latter with alternative indicators, it persists in the long run and it is robust to controlling for political ideology and political competition.

  • 3.
    Björklund, Anders
    et al.
    Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
    Roine, Jesper
    Waldenström, Daniel
    Intergenerational top income mobility in Sweden: Capitalist dynasties in the land of equal opportunity?2012In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 96, no 5-6, p. 474-484Article in journal (Refereed)
    Abstract [en]

    This paper presents new evidence on intergenerational mobility at the top of the income and earnings distributions. Using a large dataset of matched father-son pairs in Sweden, we find that intergenerational transmission is very strong at the top, more so for income than for earnings. At the extreme top (top 0.1%) income transmission is remarkable with an intergenerational elasticity of approximately 0.9. We also study potential transmission mechanisms and find that IQ, non-cognitive skills and education of the sons are all unlikely channels in explaining the strong transmission. Within the top percentile, increases in the income of the fathers, if they are related at all, are negatively associated with these variables. Wealth, on the other hand, has a significantly positive association. Our results suggest that Sweden, known for having relatively high intergenerational mobility in general, is a society in which transmission remains strong at the very top of the distribution and wealth is the most likely channel.

  • 4.
    Bold, Tessa
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Kimenyi, Mwangi
    Mwabu, Germano
    Ng'ang'a, Alice
    Sandefur, Justin
    Experimental evidence on scaling up education reforms in Kenya2018In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 168, p. 1-20Article in journal (Refereed)
    Abstract [en]

    What constraints arise when translating successful NGO programs to improve public services in developing countries into government policy? We report on a randomized trial embedded within a nationwide reform of teacher hiring in Kenyan government primary schools. New teachers offered a fixed-term contract by an international NGO significantly raised student test scores, while teachers offered identical contracts by the Kenyan government produced zero impact. Observable differences in teacher characteristics explain little of this gap. Instead, data suggests that bureaucratic and political opposition to the contract reform led to implementation delays and a differential interpretation of identical contract terms. Additionally, contract features that produced larger learning gains in both the NGO and government treatment arms were not adopted by the government outside of the experimental sample.

  • 5. Ekberg, John
    et al.
    Eriksson, Rickard
    Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
    Friebel, Guido
    Parental leave: a policy evaluation of the Swedish "Daddy-month reform"2013In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, no 97, p. 131-143Article in journal (Refereed)
  • 6. Gärtner, Manja
    et al.
    Mollerstrom, Johanna
    Seim, David
    Stockholm University, Faculty of Social Sciences, Department of Economics. Research Institute for Industrial Economics (IFN), Sweden.
    Individual risk preferences and the demand for redistribution2017In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 153, p. 49-55Article in journal (Refereed)
    Abstract [en]

    Redistributive policies can provide an insurance against future negative economic shocks. This, in turn, implies that an individual's demand for redistribution is expected to increase with her risk aversion. To test this prediction, we elicit risk aversion and demand for redistribution through a well-established set of measures in a representative sample of the Swedish population. We document a statistically significant and robust positive relation between risk aversion and the demand for redistribution that is also economically important. We show that previously used proxies for risk aversion (such as being an entrepreneur or having a history of unemployment) do not capture the effect of our measure of risk aversion but have distinctly different effects on the demand for redistribution. We also show evidence indicating that risk aversion can explain significant parts of the well-studied relations between age and gender on the one hand and demand for redistribution on the other.

  • 7.
    Hinnerich, Björn Tyrefors
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Do Merging Local Governments Free Ride on Their Counterparts When Facing Boundary Reform?2009In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 93, no 5-6, p. 721-728Article in journal (Refereed)
    Abstract [en]

    The Western world exhibited a significant trend towards larger local governments in the twentieth century, which was driven to a large extent by boundary reforms. Boundary reforms can provide economic benefits, but may also give rise to costs driven by opportunistic political behavior. This study uses a Swedish compulsory reform to test for such behavior. The reform gives a local government the incentive to accumulate debt before a merger takes place, since the taxpayers in the new locality will share the cost. The strength of the incentive to free ride is determined by the population size of the initial locality relative to that of the new locality. I find an economically large and statistically significant free riding effect.

  • 8.
    Jäntti, Markus
    et al.
    Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI). Luxembourg Income Study, Luxembourg.
    Pirttilä, Jukka
    Selin, Håkan
    Estimating labour supply elasticities based on cross-country micro data: A bridge between micro and macro estimates?2015In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 127, p. 87-99Article in journal (Refereed)
    Abstract [en]

    The Nordic model relies on high tax rates to finance an extensive welfare state. If labour supply elasticities are large, the burden of financing the model can be large even if, arguably, the practice of providing subsidised goods that support labour supply is likely to mitigate these effects. We utilise repeated cross sections of micro data from several countries, including the four major Nordic countries, available from the Luxembourg Income Study, LIS, to estimate labour supply elasticities, both at the intensive and extensive margins. The data span over four decades and include a large number of tax reform episodes, with tax rate variation arising both from cross-sectional and country-level differences. Using these data, we investigate whether micro and macro estimates differ in a systematic way. The results do not provide strong support for the view that elasticities at the macro level would be higher than the corresponding micro elasticities.

  • 9.
    Koehne, Sebastian
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. CESifo, Germany.
    Kuhn, Moritz
    Optimal taxation in a habit formation economy2015In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 122, p. 31-39Article in journal (Refereed)
    Abstract [en]

    This paper studies habit formation in consumption preferences in a dynamic Mirrlees economy. We derive optimal labor and savings wedges based on a recursive approach. We show that habit formation creates a motive for subsidizing labor supply and savings. In particular, habit formation invalidates the well-known no distortion at the top result. We demonstrate that the theoretical findings are quantitatively important: in a parametrized life-cycle model, average labor and savings wedges fall by more than one-third compared with the case of time-separable preferences.

  • 10.
    Kolm, Ann-Sofie
    et al.
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Tonin, Mirco
    Benefits conditional on work and the Nordic model2015In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 127, p. 115-126Article in journal (Refereed)
    Abstract [en]

    Welfare benefits in the Nordic countries are often tied to employment. We argue that this is one of the factors behind the success of the Nordic model, where a comprehensive welfare state is associated with high employment. In a general equilibrium setting, the underlining mechanism works through wage moderation and job creation. The benefits make it more important to hold a job, thus lower wages will be accepted, and more jobs created. Moreover, we show that the incentive to acquire higher education improves, further boosting employment in the long run. These positive effects help in counteracting the negative impact of taxation. Through numerical simulations, we show how this mechanism can contribute to explain the better labor market performance and more equitable income distribution of Nordic countries compared to Continental European ones.

  • 11.
    Krueger, Alan B.
    et al.
    Princeton.
    Mueller, Andreas
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Job Search and Unemployment Insurance: New Evidence from Time Use Data2010In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 94, no 3-4, p. 298-307Article in journal (Refereed)
    Abstract [en]

    This paper provides new evidence on job search intensity of the unemployed in the U.S., modeling job search intensity as time allocated to job search activities. The major findings are: 1) the average U.S. unemployed worker devotes about 41 min to job search on weekdays, which is substantially more than their European counterparts; 2) workers who expect to be recalled by their previous employer search substantially less than the average unemployed worker; 3) across the 50 states and D.C., job search is inversely related to the generosity of unemployment benefits, with an elasticity between -1.6 and -2.2; 4) job search intensity for those eligible for Unemployment Insurance (UI) increases prior to benefit exhaustion: and 5) time devoted to job search is fairly constant regardless of unemployment duration for those who are ineligible for UI.

  • 12.
    Lindquist, Matthew
    et al.
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Björklund, Anders
    Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
    Jäntti, Markus
    Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
    Family Background and Income during the Rise of the Welfare State: Brother Correlations in Income for Swedish Men Born 1932-19682009In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 93, no 5-6, p. 671-680Article in journal (Refereed)
    Abstract [en]

    We investigate if the association between family background and income in Sweden has changed for men born between 1932 and 1968. Our main finding is that the share of the variance in long-run income that is attributable to family background, the so-called brother correlation in income, has fallen by some 17% from 0.49 for the cohorts of brothers born in the early 1930s to below 0.32 for the cohorts born around 1950. From then on, the correlations have inched back up to around 0.37. We report suggestive evidence that the decline is driven by changes in education.

  • 13. Mitrut, Andrea
    et al.
    Tudor, Simona
    Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
    Bridging the gap for Roma: The effects of an ethnically targeted program on prenatal care and child health2018In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 165, p. 114-132Article in journal (Refereed)
    Abstract [en]

    This study uses quasi-experimental variation from a public health program implemented in Romania that targeted Roma, Europe's largest and most disadvantaged ethnic minority. The program employed health mediators to increase the provision of information about already existing, free of charge health services available for children and pregnant women. We find that, in rural areas, the program led to large increases in prenatal care take-up rates but no improvements in children's health at birth. However, we find significant reductions in infant mortality caused by perinatal complications.

  • 14.
    Nyberg, Sten
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    The honest society: Stability and policy considerations1997In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 64, no 1, p. 83-99Article in journal (Refereed)
    Abstract [en]

    The social level of honesty is a public good that determines the feasibility of ventures subject to opportunism and the amount of resources devoted to safeguarding such activities. This paper examines equilibrium honesty in an evolutionary model where safeguards exhibit diminishing returns. The analysis shows that honesty-promoting policies, such as public provision and subsidization of safeguards, financed by uniform taxes, increase social welfare. By contrast, sharply increased safeguard costs, e.g. soaring litigation costs, may initiate a process of disintegration of honesty in society. Furthermore, hysteresis makes re-establishing honesty likely to be very costly.

  • 15.
    Nyberg, Sten
    et al.
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Priks, Mikael
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Public order and private payments: Evidence from the Swedish soccer leauge2017In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 153, p. 1-8Article in journal (Refereed)
    Abstract [en]

    Should organizers of events share the associated costs of maintaining public order? We address this question by using unique data from the Swedish soccer league where co-payment for police were introduced for some clubs only. The difference-in-differences analysis shows that co-payments increased private guards by 40% and suggests a reduction of unruly behavior by 20%. The results are consistent with our model, where co-payments alleviate under-provision in efforts by organizers to combat problems such as hooliganism due to externalities and free-riding on police services. The model also sheds light on the critique that co-payments could lead financially constrained organizers to provide less security.

  • 16.
    Pettersson Lidbom, Per
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Does the size of the legislature affect the size of government?: Evidence from two natural experiments2012In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 96, no 3-4, p. 269-278Article in journal (Refereed)
    Abstract [en]

    This paper makes use of regression discontinuity designs to estimate the effect of the number of legislators on the size of government. The results indicate a negative effect, i.e., the larger the size of the legislature the smaller is the size of government. This runs counter to conventional wisdom. One potential explanation is that more legislators can better control a budget maximizing bureaucracy. I present evidence that is consistent with the proposed mechanism.

  • 17.
    Priks, Mikael
    et al.
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Poutvaara, Panu
    The Effect of Police Intelligence on Group Violence: Evidence from Reassignments in Sweden2009In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 93, no 3-4, p. 403-411Article in journal (Refereed)
    Abstract [en]

    This paper isolates the causal effect of policing on group violence, using unique panel data on

    self-reported crime by soccer and ice hockey hooligans. The problem of reverse causality from

    violence to policing is solved by two drastic reallocations of the Stockholm Sport Intelligence

    and Tactical Unit to other activities following the 9/11 terrorist attack in September 2001 and

    the Tsunami catastrophe in December 2004. Difference-in-difference analysis reveals that

    Stockholm-related hooligan violence increased dramatically during these periods.

  • 18. Reinikka, Ritva
    et al.
    Svensson, Jakob
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    The power of information in public services: Evidence from education in Uganda2011In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 95, no 7-8, p. 956-966Article in journal (Refereed)
    Abstract [en]

    In this paper we argue that innovations in governance of social services are an effective way to improve outcomes such as attainment of universal primary education. To test this hypothesis we exploit an unusual policy experiment: a newspaper campaign in Uganda aimed at reducing the capture of public funds by providing schools (parents) with systematic information to monitor local officials' handling of a large education grant program. Combining survey and administrative data, we show that public access to information can be a powerful deterrent to the capture of funds at the local level and that the reduction in the capture of funds that resulted had a positive effect on school enrollment and learning outcomes.

  • 19. Roine, Jesper
    et al.
    Vlachos, Jonas
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Waldenstrom, Daniel
    The long-run determinants of inequality: What can we learn from top income data?2009In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 93, no 08-jul, p. 974-988Article in journal (Refereed)
    Abstract [en]

    This paper studies determinants of income inequality using a newly assembled panel of 16 countries over the entire twentieth century. We focus on three groups of income earners: the rich (P99-100), the upper middle class (P90-99), and the rest of the population (P0-90). The results show that periods of high economic growth disproportionately increases the top percentile income share at the expense of the rest of the top decile. Financial development is also pro-rich and the outbreak of banking crises is associated with reduced income shares of the rich. Trade openness has no clear distributional impact (if anything openness reduces top shares). Government spending, however, is negative for the upper middle class and positive for the nine lowest deciles but does not seem to affect the rich. Finally, tax progressivity reduces top income shares and when accounting for real dynamic effects the impact can be important over time.

  • 20.
    Vlachos, Jonas
    et al.
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Svaleryd, Helena
    Political Rents in a Non-Corrupt Democracy2009In: Journal of Public Economics, ISSN 0047-2727, E-ISSN 1879-2316, Vol. 93, no 3-4, p. 355-372Article in journal (Refereed)
    Abstract [en]

    A fundamental problem in all political systems is that the people in power may extract rents to

    the detriment of the general public. In a democracy, electoral competition and information

    provided by the media may keep such rent extraction at bay.We develop a simple model where

    rents are decreasing in the degree of political competition and voter information. In line with

    our theoretical predictions, we

     

     

    fi

    nd that both increased political competition and increased

    local media coverage substantially reduce direct measures of legal political rents among local

    governments in a non-corrupt democracy (Sweden).

1 - 20 of 20
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