News

On Tuesday, Liberalerna (the Liberals) organized a seminar in Parliament: "Stock options - the possibility for co-workers to become co-owner?" Magnus Henrekson, IFN, was part of a panel that discussed ideas about the business climate in general and stock options in particular. The Incentives commission's (Incitamentsutredningen) proposal for stock option rules was criticized by all four speakers. The panel also included Annika Linde, SUP 46, Elisabeth Thand Ringqvist, Swedish Venture Capital Association and Knut Frängsmyr, Klarna.

In the latest issue of Ekonomisk Debatt (published by Nationalekonomiska Föreningen; the Swedish Economic Association), Andreas Bergh, IFN, writes about three books by Roland Paulsen, all concerned with working life. In addition, Johanna Rickne, Stockholm University, and affiliated with IFN, is one of the authors of an article on "meritocratic government". Niclas Berggren, IFN and Editor of Ekonomisk Debatt, writes in an editorial piece about the global "elite" which is increasingly criticized for pursuing a policy that has provoked populism.

Arbetsmarknadsekonomiska rådet (Labor Economic Council) with Lars Calmfors, IFN, as chairman, unveiled on Thursday a report: "The German Labor Market Miracle: An Assessment". In the report Professor Michael C. Burda of Humboldt University in Berlin, analyzes how labor market reforms and changes in wage formation in Germany have affected employment.

Like in all of the Western countires, growth is low in France and, among other things, automation poses challenges for the economy, said Daniel Waldentröm in Ekonomiekot Lördag (Swedish Public Radio). He explained that there are three presidential candidates that have presented more or less serious economic programs in the presidential campaign: Emmanuel Macron, Francois Fillon and Benoit Hamon.

The link between air travel and economic activity is very strong, explained Shon Ferguson, IFN, and Richard Forslid, Stockholm University, in the SNS report "Flyget och företagen” (Aviation and business) which was presented on Tuesday. They show that a municipality with half as much distance to the airport has 50 percent higher production. The study also shows that knowledge-intensive industries (such as IT and finance) are most dependent on aviation.

David Cesarini, IFN and New York University, has been awarded over SEK 6 million from the Ragnar Söderberg Foundation to study how millions of genetic markers related to various economic and social behaviors and attitudes. Sven Oskarsson, Uppsala University, is coapplicant. Studies led by the two researchers have begun to identify genetic associations with behavioral outcomes such as educational attainment, personality and subjective well-being.

Within the framework of the EU project FIRES a first IFN-working paper has been published by Niklas Elert, IFN, and Selin Dilli, Utrecht University. In their study they have examined how 21 European countries and the United States cluster in entrepreneurial and institutional dimensions. The results reveal six country clusters, or entrepreneurial regimes. The main implication is that different reform strategies are appropriate to promote entrepreneurship and economic growth in European countries in different clusters.

The 2016 Global Award for Entrepreneurship Research is awarded to Professor Philippe Aghion, Collège de France and previously at Harvard University. Global Award is the most prominent international award in entrepreneurship research with a prize sum of € 100 000. Professor Aghion, who has been one of the World’s most influential scholars in economics during the last two decades, is awarded for his analyses of the importance of innovation for business development.

On Wednesday Johan Wiklund, Syracuse University, presented the study "ADHD, Impulsivity and Entrepreneurship" at IFN in Stockholm. "Johan Wiklund is one of the world's most successful entrepreneurship scholars", said Niclas Berggren, IFN, when introducing Wiklund who is currently studying if individuals diagnosed with ADHD are less or more prone to become entrepreneurs.

On Tuesday Harold James, Professor of History and International Affairs, Princeton University, presented the 2016 EEAG Report and a chapter about intergenerational fairness in today’s Europe. Mats Persson, Professor of Economics at Stockholm University, commented on the report. This was followed by a discussion moderaterad by journalist Paulina Neuding. The topics veered from the many asylum seeking immigrants and unemployment among European youth to retirement benefits, and what these developments will mean to the society of tomorrow.

Researchers Matilda Orth, IFN, and Florin Maican, Gothenburg University and affiliated to IFN, have developed methods and tools for enhancing strategic decision making in retail. The research report is published by the Swedish Retail and Wholesale Council (Handelsrådet). The study shows, among other things, how competition is working between stores with different concept and location. This knowledge can be used to evaluate introduction of new store formats in new markets.

 

Matti Keloharju, Professor of Finance at Aalto University in Finland, Samuli Knüpfer, Professor of Finance at BI Norwegian Business School in Oslo, and Joacim Tåg,  Ph.D. and Program Director at IFN, has published a study about gender gaps in CEO appointments and pay. Both gaps are sizeable: 18% for CEO appointments and 27% for pay. At most one-eight of the gaps can be attributed to observable gender differences in executives’ and their firms’ characteristics.

In the Columbia Law School's Blog Alexander Ljungqvist, NYU and affiliated to IFN, Lars Persson, IFN, and Joacim Tåg, IFN, writes about long term consequences of buyouts. The study focuses on public-to-private buyouts which in the US account for an estimated 45% of PE transactions by value. As a consequence, the size of the U.S. stock market has fallen dramatically in recent years, Lungqvist, Persson and Tåg write.

"Entrepreneurs create growth, but who creates entrepreneurs?" was the title of a seminar that IFN, in cooperation with the publisher Studentlitteratur, arranged on January 19. A renowned panel discussed what needs to be done for more people to become entrepreneurs.

The interaction of favorable tax treatment and inherent advantages has led to near universal use of stock options in American venture capital deals, while this remains less common in Europe. Magnus Henrekson, IFN, and Tino Sanandaji asked the tax consultancy firm PwC to calculate the effective tax rate for a standardized entrepreneurial case in 22 countries, finding that countries with favorable tax treatment have more VC activity. One advantage of this tax policy is that it narrowly targets entrepreneurial startups without requiring broad tax cuts.

Steven Davis, University of Chicago Booth School of Business, visited Sweden and IFN in December. He participated in a public seminar and was interviewed by Pär Ivarsson, Ekonomiekot, Swedish Radio. Davis is co-founder of the Economic Policy Uncertainty Index, which measures economic uncertainty and its impact on production, investment and employment. The interview will be broadcasted in channel P1 tomorrow Saturday, January 9^th at 11:40 am.

In 2015, the Research Institute of Industrial Economics, IFN, has produced three podcasts in English. The topics range from GDP to immigration. If you have a quiet moment during the holidays, we suggest that you download and listen to an IFN podcast.

Does policy uncertainty curb economic growth? Yes, said Professor Steven Davis, University of Chicago Booth School of Business, at a seminar organized by IFN in Stockholm on December 16. A Swedish example of uncertainty created by the politicians is the government's announcement that distribution of profits in the service sector will be restricted. Steven Davis pointed to the refugee flows that create uncertainty in European societies. Davis is co-founder of the Economic Policy Uncertainty Index, which measures economic uncertainty and its impact on production, investment and employment. A panel discussed Davis’ finding: Max Elger, State Secretary in the Ministry of Finance, Ulf Kristersson, Economic Policy Spokesperson for the Moderate Party and Professor John Hassler, Chairman of the Swedish Fiscal Policy Council.

Joacim Tåg, IFN, participated on Wednesday in a panel discussion hosted by the Swedish Venture Capital Association (SVCA). A report on the impact of ownership on value creation and job creation in Sweden was presented. It shows that 50% of all capital is foreign owned. A panel discussed the report's conclusions in general and equity/ownership in Sweden in particular. The participants agreed that the active owners are an asset to companies, but also for the economy at large.

On December 7, Özge Öner, IFN, participated in a seminar about dynamics of the city and surrounding regions. The seminar was organized by Entrepreneurship Forum. Geoffrey Hewings, professor at the University of Illinois, opened with a presentation of research on the degree of interdependence between the city and its metropolitan area. “It is very large but often unmeasured and therefore under-appreciated,” said Hewings.