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  • 1.
    Almås, Ingvild
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. Norwegian School of Economics, Norway.
    Cappelen, Alexander W.
    Salvanes, Kjell G.
    Sørensen, Erik Ø.
    Tungodden, Bertil
    Fairness and family background2017In: Politics, Philosophy and Economics, ISSN 1470-594X, E-ISSN 1741-3060, Vol. 16, no 2, p. 117-131Article in journal (Refereed)
    Abstract [en]

    Fairness preferences fundamentally affect individual behavior and play an important role in shaping social and political institutions. However, people differ both with respect to what they view as fair and with respect to how much weight they attach to fairness considerations. In this article, we study the role of family background in explaining these heterogeneities in fairness preferences. In particular, we examine how socioeconomic background relates to fairness views and to how people make trade-offs between fairness and self-interest. To study this, we conducted an economic experiment with a representative sample of 14- to 15-year-old and matched the experimental data to administrative data on parental income and education. The participants made two distributive choices in the experiment. The first choice was to distribute money between themselves and another participant in a situation where there was no difference in merit. The second choice was to distribute money between two other participants with unequal merits. Our main finding is that there is a systematic difference in fairness view between children from low-socioceconomic status (SES) families and the rest of the participants; more than 50 percent of the participants from low-SES families are egalitarians, whereas only about 20 percent in the rest of the sample hold this fairness view. In contrast, we find no significant difference in the weight attached to fairness between children from different socioeconomic groups.

  • 2.
    Almås, Ingvild
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. NHH, Norwegian School of Economics, Norway.
    Grewal, Mandeep
    Hvide, Marielle
    Ugurlu, Serhat
    The PPP approach revisited: A study of RMB valuation against the USD2017In: Journal of International Money and Finance, ISSN 0261-5606, E-ISSN 1873-0639, Vol. 77, p. 18-38Article in journal (Refereed)
    Abstract [en]

    We analyze the alleged undervaluation of the Chinese renminbi against the US dollar through an application of the relative PPP hypothesis, the PPP approach. The PPP approach measures the relative misalignment of a currency by estimating the relationship between log price levels and log per capita real incomes from a cross section of countries. We estimate this relationship by using ICP 2011 and incorporating model selection tests. Our results confirm that price level-real income relationship is best approximated by a quadratic functional form. We show that, using this functional form, the PPP approach does not reveal any evidence of renminbi undervaluation as of 2011, and this result is robust to various sensitivity tests.

  • 3.
    Almås, Ingvild
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. Norwegian School of Economics, Norway.
    Kjelsrud, Anders
    Rags and Riches: Relative Prices, Non-Homothetic Preferences, and Inequality in India2017In: World Development, ISSN 0305-750X, E-ISSN 1873-5991, Vol. 97, p. 102-121Article in journal (Refereed)
    Abstract [en]

    It is well known that consumption patterns change with income. Relative price changes would therefore affect rich and poor consumers differently. Yet, the standard price indices are not income-specific, and hence, they cannot account for such differences. In this paper, we study consumption inequality in India, while fully allowing for non-homotheticity. We show that the relative price changes during most of the period from 1993 to 2012 were pro-poor, in the sense that they favored the poor relative to the rich. As a result, we also find that conventional measures significantly overstate the rise in real consumption inequality during this period. The main lesson from our study is the importance of accounting for non-homotheticity when measuring inequality. The price index literature has, as of yet, paid relatively little attention to this. In our application, however, it turns out that the allowance for nonhomotheticity is quantitatively much more important than much discussed adjustments, such as those for substitution in consumption.

  • 4. Besley, Timothy
    et al.
    Folke, Olle
    Persson, Torsten
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. Canadian Institute for Advanced Research (CIFAR), Canada.
    Rickne, Johanna
    Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI). Research Institute of Industrial Economics, Sweden; Uppsala Center for Labor Studies (UCLS), Sweden.
    Gender Quotas and the Crisis of the Mediocre Man: Theory and Evidence from Sweden2017In: The American Economic Review, ISSN 0002-8282, E-ISSN 1944-7981, Vol. 107, no 8, p. 2204-2242Article in journal (Refereed)
    Abstract [en]

    We develop a model where party leaders choose the competence of politicians on the ballot to trade off electoral success against their own survival. The predicted correlation between the competence of party leaders and followers is strongly supported in Swedish data. We use a novel approach, based on register data for the earnings of the whole population, to measure the competence of all politicians in 7 parties, 290 municipalities, and 10 elections (for the period 1982-2014). We ask how competence was affected by a zipper quota, requiring local parties to alternate men and women on the ballot, implemented by the Social Democratic Party in 1993. Far from being at odds with meritocracy, this quota raised the competence of male politicians where it raised female representation the most. We argue that resignation of mediocre male leaders was a key driver of this effect.

  • 5. Björkman Nyqvist, Martina
    et al.
    de Walque, Damien
    Svensson, Jakob
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Experimental Evidence on the Long-Run Impact of Community-Based Monitoring2017In: American Economic Journal: Applied Economics, ISSN 1945-7782, E-ISSN 1945-7790, Vol. 9, no 1, p. 33-69Article in journal (Refereed)
    Abstract [en]

    We evaluate the longer run impact of a local accountability intervention in primary health care provision in Uganda. Short-run improvements in health care delivery and health outcomes remained in the longer run despite minimal follow-up. We find no impact on the quality of care or health. outcomes of a lower cost intervention that focused on encouraging participation but did not provide information on staff performance. We provide suggestive evidence that informed beneficiaries are more likely to identify and challenge (mis)behavior by providers and, as a result, turn their focus to issues that they can manage locally.

  • 6.
    Bold, Tessa
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Filmer, Deon
    Martin, Gayle
    Molina, Ezequiel
    Stacy, Brian
    Rockmore, Christophe
    Svensson, Jakob
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Wane, Waly
    Enrollment without Learning: Teacher Effort, Knowledge, and Skill in Primary Schools in Africa2017In: Journal of Economic Perspectives, ISSN 0895-3309, E-ISSN 1944-7965, Vol. 31, no 4, p. 185-204Article in journal (Refereed)
    Abstract [en]

    School enrollment has universally increased over the last 25 years in low-income countries. Enrolling in school, however, does not assure that children learn. A large share of children in low-income countries complete their primary education lacking even basic reading, writing, and arithmetic skills. Teacher quality is a key determinant of student learning, but not much is known about teacher quality in low-income countries. This paper discusses an ongoing research program intended to help fill this void. We use data collected through direct observations, unannounced visits, and tests from primary schools in seven sub-Saharan African countries to answer three questions: How much do teachers teach? What do teachers know? How well do teachers teach?

  • 7.
    Bold, Tessa
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Kaizzi, Kayuki C.
    Svensson, Jakob
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Yanagizawa-Drott, David
    LEMON TECHNOLOGIES AND ADOPTION: MEASUREMENT, THEORY, AND EVIDENCE FROM AGRICULTURAL MARKETS IN UGANDA2017In: Quarterly Journal of Economics, ISSN 0033-5533, E-ISSN 1531-4650, Vol. 132, no 3, p. 1055-1100Article in journal (Refereed)
    Abstract [en]

    To reduce poverty and food insecurity in Africa requires raising productivity in agriculture. Systematic use of fertilizer and hybrid seed is a pathway to increased productivity, but adoption of these technologies remains low. We investigate whether the quality of agricultural inputs can help explain low take-up. Testing modern products purchased in local markets, we find that 30% of nutrient is missing in fertilizer, and hybrid maize seed is estimated to contain less than 50% authentic seeds. We document that such low quality results in low average returns. If authentic technologies replaced these low-quality products, however, average returns are high. To rationalize the findings, we calibrate a learning model using data from our agricultural trials. Because agricultural yields are noisy, farmers' ability to learn about quality is limited and this can help explain the low quality equilibrium we observe, but also why the market has not fully collapsed.

  • 8.
    Broer, Tobias
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    The home bias of the poor: Foreign asset portfolios across the wealth distribution2017In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 92, p. 74-91Article in journal (Refereed)
    Abstract [en]

    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.

  • 9.
    Broer, Tobias
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. CEPR, United Kingdom.
    Kapicka, Marek
    Klein, Paul
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Consumption risk sharing with private information and limited enforcement2017In: Review of economic dynamics (Print), ISSN 1094-2025, E-ISSN 1096-6099, Vol. 23, p. 170-190Article in journal (Refereed)
    Abstract [en]

    We study consumption risk sharing when individual income shocks are persistent and not publicly observable, and individuals can default on contracts at the price of financial autarky. We find that, in contrast to a model where the only friction is limited enforcement, our model has observable implications that are similar to those of an Aiyagari (1994) self-insurance model and therefore broadly consistent with empirical observations. However, some of the implied effects of changes in policy or the economic environment are noticeably different in our model compared to self-insurance.

  • 10. Cesarini, David
    et al.
    Lindqvist, Erik
    Notowidigdo, Matthew J.
    Östling, Robert
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    The Effect of Wealth on Individual and Household Labor Supply: Evidence from Swedish Lotteries2017In: The American Economic Review, ISSN 0002-8282, E-ISSN 1944-7981, Vol. 107, no 12, p. 3917-3946Article in journal (Refereed)
    Abstract [en]

    We study the effect of wealth on labor supply using the randomized assignment of monetary prizes in a large sample of Swedish lottery players. Winning a lottery prize modestly reduces earnings, with the reduction being immediate, persistent, and quite similar by age, education, and sex. A calibrated dynamic model implies lifetime marginal propensities to earn out of unearned income from -0.17 at age 20 to -0.04 at age 60, and labor supply elasticities in the lower range of previously reported estimates. The earnings response is stronger for winners than their spouses, which is inconsistent with unitary household labor supply models.

  • 11. Dal Bó, Ernesto
    et al.
    Finan, Frederico
    Folke, Olle
    Persson, Torsten
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Rickne, Johanna
    Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI). Uppsala University, Sweden; Research Institute of Industrial Economics (IFN), Sweden.
    Who Becomes A Politician?2017In: Quarterly Journal of Economics, ISSN 0033-5533, E-ISSN 1531-4650, Vol. 132, no 4, p. 1877-1914Article in journal (Refereed)
    Abstract [en]

    Can a democracy attract competent leaders, while attaining broad representation? Economicmodels suggest that free-riding incentives and lower opportunity costs give the less competent a comparative advantage at entering political life. Moreover, if elites have more human capital, selecting on competence may lead to uneven representation. This article examines patterns of political selection among the universe of municipal politicians and national legislators in Sweden, using extraordinarily rich data on competence traits and social background for the entire population. We document four new facts that together characterize an inclusive meritocracy. First, politicians are on average significantly smarter and better leaders than the population they represent. Second, this positive selection is present even when conditioning on family (and hence social) background, suggesting that individual competence is key for selection. Third, the representation of social background, whether measured by parental earnings or occupational social class, is remarkably even. Fourth, there is at best a weak trade-off in selection between competence and social representation, mainly due to strong positive selection of politicians of low (parental) socioeconomic status. A broad implication of these facts is that it is possible for democracy to generate competent and socially representative leadership.

  • 12.
    de Quidt, Jonathan
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. CESifo, Germany.
    Fallucchi, Francesco
    Kölle, Felix
    Nosenzo, Daniele
    Quercia, Simone
    Bonus versus penalty: How robust are the effects of contract framing?2017In: Journal of the Economic Science Association, ISSN 2199-6784, Vol. 3, no 2, p. 174-182Article in journal (Refereed)
    Abstract [en]

    We study the relative effectiveness of contracts that are framed either in terms of bonuses or penalties. In one set of treatments, subjects know at the time of effort provision whether they have achieved the bonus/avoided the penalty. In another set of treatments, subjects only learn the success of their performance at the end of the task. We fail to observe a contract framing effect in either condition: effort provision is statistically indistinguishable under bonus and penalty contracts.

  • 13. Engström, Kerstin
    et al.
    Lindeskog, Mats
    Olin, Stefan
    Hassler, John
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Smith, Benjamin
    Impacts of climate mitigation strategies in the energy sector on global land use and carbon balance2017In: Earth System Dynamics, ISSN 2190-4979, E-ISSN 2190-4987, Vol. 8, no 3, p. 773-799Article in journal (Refereed)
    Abstract [en]

    Reducing greenhouse gas emissions to limit damage to the global economy climate-change-induced and secure the livelihoods of future generations requires ambitious mitigation strategies. The introduction of a global carbon tax on fossil fuels is tested here as a mitigation strategy to reduce atmospheric CO2 concentrations and radiative forcing. Taxation of fossil fuels potentially leads to changed composition of energy sources, including a larger relative contribution from bioenergy. Further, the introduction of a mitigation strategy reduces climate-change-induced damage to the global economy, and thus can indirectly affect consumption patterns and investments in agricultural technologies and yield enhancement. Here we assess the implications of changes in bioenergy demand as well as the indirectly caused changes in consumption and crop yields for global and national cropland area and terrestrial biosphere carbon balance. We apply a novel integrated assessment modelling framework, combining three previously published models (a climate-economy model, a socio-economic land use model and an ecosystem model). We develop reference and mitigation scenarios based on the narratives and key elements of the shared socio-economic pathways (SSPs). Taking emissions from the land use sector into account, we find that the introduction of a global carbon tax on the fossil fuel sector is an effective mitigation strategy only for scenarios with low population development and strong sustainability criteria (SSP1 Taking the green road). For scenarios with high population growth, low technological development and bioenergy production the high demand for cropland causes the terrestrial biosphere to switch from being a carbon sink to a source by the end of the 21st century.

  • 14. Folke, Olle
    et al.
    Persson, Torsten
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. CIFAR, Canada.
    Rickne, Johanna
    Research Institute of Industrial Economics (IFN), Sweden.
    Dynastic Political Rents? Economic Rents to Relatives of Top Politicians2017In: Economic Journal, ISSN 0013-0133, E-ISSN 1468-0297, Vol. 127, p. F495-F517Article in journal (Refereed)
    Abstract [en]

    We exploit close elections in Swedish municipalities to test whether relatives of politicians who become mayors obtain economic benefits. We find no benefits for the siblings of new mayors, but the average earnings of children of newly appointed mayors rise by about 15%. Administrative information on occupational and residence status show that the higher earnings are unlikely reflect an illegitimate allocation of jobs. But the evidence suggests that children of election-winning mayors are more likely to postpone tertiary education and remain in their parents' municipality to work.

  • 15. Folke, Olle
    et al.
    Persson, Torsten
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Rickne, Johanna
    Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI). Institutet för Näringslivsforskning, Sverige.
    Könskvotering, kompetens och karriär2017Report (Other academic)
  • 16. Gärtner, Manja
    et al.
    Sandberg, Anna
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Is there an omission effect in prosocial behavior? A laboratory experiment on passive vs. active generosity2017In: PLoS ONE, ISSN 1932-6203, E-ISSN 1932-6203, Vol. 12, no 3, article id e0172496Article in journal (Refereed)
    Abstract [en]

    We investigate whether individuals are more prone to act selfishly if they can passively allow for an outcome to be implemented (omission) rather than having to make an active choice (commission). In most settings, active and passive choice alternatives differ in terms of factors such as the presence of a suggested option, costs of taking an action, and awareness. We isolate the omission effect from confounding factors in three experiments, and find no evidence that the distinction between active and passive choices has an independent effect on the propensity to implement selfish outcomes. This suggests that increased selfishness through omission, as observed in various economic choice situations, is driven by other factors than a preference for selfish omissions.

  • 17.
    Hassler, John
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Krusell, Per
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Shifa, Abdulaziz B.
    Spiro, Daniel
    Should Developing Countries Constrain Resource-Income Spending? A Quantitative Analysis of Oil Income in Uganda2017In: Energy Journal, ISSN 0195-6574, E-ISSN 1944-9089, Vol. 38, no 1, p. 103-131Article in journal (Refereed)
    Abstract [en]

    A large increase in government spending following resource discoveries often entails political risks, inefficient investments and increased volatility. Setting up a sovereign wealth fund with a clear spending constraint may decrease these risks. On the other hand, in a capital scarce developing economy with limited access to international borrowing, such a spending constraint may lower welfare by reducing domestic capital accumulation and hindering consumption increases for the currently poor. These two contradicting considerations pose a dilemma for policy makers in deciding whether to set up a sovereign wealth fund with a spending constraint. Using Uganda's recent oil discovery as a case study, this paper presents a quantitative macroeconomic analysis and examines the potential loss of constraining spending through a sovereign wealth fund with a simple spending rule. We find that the loss is relatively low and unlikely to dominate the political risks associated with increased oil spending. Thus, such a spending constraint appears well warranted.

  • 18.
    Krusell, Per
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. University of Göteborg, Sweden.
    Mukoyama, Toshihiko
    Rogerson, Richard
    Sahin, Aysegul
    Gross Worker Flows over the Business Cycle2017In: The American Economic Review, ISSN 0002-8282, E-ISSN 1944-7981, Vol. 107, no 11, p. 3447-3476Article in journal (Refereed)
    Abstract [en]

    We build a hybrid model of the aggregate labor market that features both standard labor supply forces and frictions in order to study the cyclical properties of gross worker flows across the three labor market states: employment, unemployment, and nonparticipation. Our parsimonious model is able to capture the key features of the cyclical movements in gross worker flows. Despite the fact that the wage per efficiency unit is constant over time, intertemporal substitution plays an important role in shaping fluctuations in the participation rate.

  • 19.
    Nekoei, Arash
    et al.
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Weber, Andrea
    Does Extending Unemployment Benefits Improve Job Quality?2017In: The American Economic Review, ISSN 0002-8282, E-ISSN 1944-7981, Vol. 107, no 2, p. 527-561Article in journal (Refereed)
    Abstract [en]

    Contrary to standard search models predictions, past studies have not found a positive effect of unemployment insurance (UI) on reemployment wages. We estimate a positive UI wage effect exploiting an age-based regression discontinuity design in Austria. A search model incorporating duration dependence predicts two countervailing forces: UI induces workers to seek higher-wage jobs, but reduces wages by lengthening unemployment. Matching-function heterogeneity plausibly generates a negative relationship between the UI unemployment-duration and wage effects, which holds empirically in our sample and across studies, reconciling disparate wage-effect estimates. Empirically, UI raises wages by improving reemployment firm quality and attenuating wage drops.

  • 20.
    Nilsson, J. Peter
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. Uppsala University, Sweden; Institute for Evaluation of Labour Market and Education Policy, Sweden.
    Alcohol Availability, Prenatal Conditions, and Long-Term Economic Outcomes2017In: Journal of Political Economy, ISSN 0022-3808, E-ISSN 1537-534X, Vol. 125, no 4, p. 1149-1207Article in journal (Refereed)
    Abstract [en]

    This study examines how a policy that sharply increased alcohol availability during 8.5 months affected the labor productivity of those exposed to it in utero. Compared to the surrounding cohorts, the prenatally exposed children have substantially worse labor market and educational outcomes and lower cognitive and noncognitive ability. Effects on earnings are found throughout the distribution but are largest below the median. Males are more affected than females, consistent with growing evidence that boys are less resilient to early environmental insults. The long-term effects seem primarily driven by changes in prenatal health rather than changes in the childhood environment.

  • 21. Qin, Bei
    et al.
    Strömberg, David
    Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
    Wu, Yanhui
    Why Does China Allow Freer Social Media? Protests versus Surveillance and Propaganda2017In: Journal of Economic Perspectives, ISSN 0895-3309, E-ISSN 1944-7965, Vol. 31, no 1, p. 117-140Article in journal (Refereed)
1 - 21 of 21
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