Stockholm School of Economics

Displaying 1-32 of 32 results

  • White Papers // Jan 2011

    Wireless Enterprise Innovations: Raising Issues Of Temporality And Activities

    The overall research question guiding the papers' studies of mobility-in-use in organizations is: How are different activities of temporality affected when organizations implement and use new wireless solutions in their intra- and inter-organizational work and how might these temporality dimensions be linked to each other and its further meaning in...

    Provided By Stockholm School of Economics

  • White Papers // Dec 2010

    Trade With R&D Costs To Entering Foreign Markets

    In this paper, the author presents a quality ladders endogenous growth model where firms differ in their productivities. The author studies the effect openness to trade has on firm productivity and firm turnover. Most theoretical papers in this literature assume an exogenous firm turnover rate. In this paper, the firm...

    Provided By Stockholm School of Economics

  • White Papers // Dec 2010

    Cross-Border Mergers And Greenfield Foreign Direct Investment

    The author presents a model of international trade and Foreign Direct Investment (FDI), where FDI is comprised of Greenfield FDI and Mergers and Acquisitions (M&A). Working in a monopolistically competitive environment, merging firms do not reduce competition. Mergers are motivated by efficiency gains and transfer of technology and expertise. The...

    Provided By Stockholm School of Economics

  • White Papers // Sep 2010

    Ownership And High-growth Firms

    Empirical studies demonstrate that most net job-growth originates from a small number of High-Growth Firms (HGFs). The purpose of this paper is to analyze whether firm ownership - family, or private non-family - matters for being a HGF, using data covering all firms in Sweden during 1993-2006. Firm growth is...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2010

    The Formation Of New Business Ventures In Networks The Formation Of New Intermediaries And Creation Of Value From The Exploitation Of Technology

    This paper analyzes new business formation connected to the use of established mobile technologies and associated services. The purpose of the paper is to describe how a set of alternative business network situations can emerge when established wireless application technologies are exploited and new value is created and new business...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2010

    Connecting Temporal And Spatial Dimensions In Business Practice - With Application To Globalization Of Markets

    The purpose of the paper is to develop a conceptual framework for analysis of time/space configurations in a business practice perspective on network dynamics. The authors regard business practice as performative in the shaping of networks. Thus they see markets as socially and materially constructed, stabilized and changed, in complex,...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2010

    Managing Multilayered Innovation Processes: Challenges Related To Embeddedness In Time And Space

    From organizational theory the authors know that firms tend to prioritize problems that are close in time and space. This paper develops a framework in order to understand how an innovation process is embedded into four different contexts that are drifting. These contexts are identified by introducing embeddedness in time...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2010

    Mental Accounting In The Housing Market

    The authors report evidence that salience may have economically significant effects on homeowners' borrowing behavior, through a bias in favor of less salient but more costly loans. They outline a simple model in which some consumers are biased. Under plausible assumptions, the bias may affect prices in equilibrium. Market data...

    Provided By Stockholm School of Economics

  • White Papers // Jun 2010

    Should Day Care Be Subsidized?

    In an economy with distortionary taxes on labor, can subsidies on day care, financed by an increase in taxes, raise welfare by encouraging women with small children to work? The authors show, within a heterogeneous-agent life-cycle framework, that the Ramsey optimal policy consists in equalizing consumption/leisure wedges over the life...

    Provided By Stockholm School of Economics

  • White Papers // May 2010

    Evolution Of Theories Of Mind

    This paper studies the evolution of peoples' models of how other people think - their theories of mind. First, this is formalized within the level-k model, which postulates a hierarchy of types, such that type k plays a k time's iterated best response to the uniform distribution. It is found...

    Provided By Stockholm School of Economics

  • White Papers // May 2010

    China's Growing Influence In Southeast Asia - Monetary Policy And Equity Markets

    The authors use structural VAR models with short-run restrictions to analyze the potential transmission of China's monetary policy shocks to equity markets in Southeast Asia. Their results show that several of the markets in the region are influenced by China's monetary policy, even though the effect is modest. The impact...

    Provided By Stockholm School of Economics

  • White Papers // Apr 2010

    Robustness To Strategic Uncertainty In Price Competition

    The authors model a player's uncertainty about other players' strategy choices as probability distributions over their strategy sets. They call a strategy profile robust to strategic uncertainty if it is the limit, as uncertainty vanishes, of some sequence of strategy profiles in each of which every player's strategy is optimal...

    Provided By Stockholm School of Economics

  • White Papers // Mar 2010

    Costly Renegotiation In Repeated Bertrand Games

    This paper extends the concept of Weak Renegotiation-Proof equilibrium (WRP) to allow for costly renegotiation and shows that even small renegotiation costs can have dramatic effects on the set of equilibrium. More specifically, the paper analyzes the infinitely repeated Bertrand game. It is shown that for every level of renegotiation...

    Provided By Stockholm School of Economics

  • White Papers // Mar 2010

    When Does The Price Affect The Taste? Results From A Wine Experiment

    The authors designed an experiment that examines how knowledge about the price of a good, and the time at which the information is received, affects how the good is experienced. The good in question was wine, and the price was either high or low. The results suggest that hosts offering...

    Provided By Stockholm School of Economics

  • White Papers // Dec 2009

    Finding All Minimal CURB Sets

    Sets closed under rational behavior were introduced by the authors as subsets of the strategy space that contain all best replies to all strategy profiles in the set. They here consider a more restrictive notion of closure under rational behavior: a subset of the strategy space is strongly closed under...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2009

    Identity And Redistribution

    This paper models the interaction between individuals' identity choices and redistribution. Both redistributive policies and identity choices are endogenous, and there might be multiple equilibrium. The model is applied to ethnicity and social class. In equilibrium with high taxes, the poor identify as poor and favor high taxes. In equilibrium...

    Provided By Stockholm School of Economics

  • White Papers // Jul 2009

    Optimal Categorization

    The importance of categorical reasoning in human cognition is well-established in psychology and cognitive science, and one of the most important functions of categorization is to facilitate prediction. This paper provides a model of optimal categorization. In the beginning of each period a subject observes a two-dimensional object in one...

    Provided By Stockholm School of Economics

  • White Papers // Jul 2009

    Uncovered Interest Parity In A Partially Dollarized Developing Country: Does UIP Hold In Bolivia? (And If Not, Why Not?)

    According to the Uncovered Interest Parity (UIP) condition, interest rate differentials compensate for expected exchange rate changes, equalizing the expected returns from holding assets which only differ in terms of currency denomination. In the previous literature, there are many tests of UIP for industrialized countries, and, more recently, some tests...

    Provided By Stockholm School of Economics

  • White Papers // Jul 2009

    The Effects Of Real Exchange Rate Depreciation In An Economy With Extreme Liability Dollarization

    This paper studies the effects of real exchange rate depreciation in an economy with extreme liability dollarization using Vector AutoRegression (VAR) methods. Bolivia's extreme liability dollarization makes it an interesting case for empirical testing of the contractionary-depreciations hypothesis. In contrast to the previous contractionary-depreciations literature, the paper uses identification assumptions...

    Provided By Stockholm School of Economics

  • White Papers // Apr 2009

    Automatic Fiscal Stabilizers In Sweden 1998-2009

    In this paper, the author examines how the responsiveness of the Swedish public budget to business-cycle conditions has developed between 1998 and 2009. The author documents substantial changes in three components behind the budget elasticity: the average level of personal income taxes has fallen substantially, the progressivity of personal income...

    Provided By Stockholm School of Economics

  • White Papers // Apr 2009

    Alma Mater Matters: The Value Of School Ties In The Venture Capital Industry

    This paper examines the role and estimates the economic value of social networks tied to academic institutions in the venture capital industry. The author shows that having a shared academic background increases the likelihood of matching between entrepreneurs and venture capitalists by 57%. Similarly, a shared academic background increases the...

    Provided By Stockholm School of Economics

  • White Papers // Mar 2009

    Epistemic Robustness Of Sets Closed Under Rational Behavior

    This paper provides two conditions of epistemic robustness, robustness to alternative best replies and robustness to non-best replies, and uses these to characterize variants of CURB sets in finite games, including the set of rationalizable strategies. A CURB set - mnemonic for 'Closed Under Rational Behavior' - is a Cartesian...

    Provided By Stockholm School of Economics

  • White Papers // Feb 2009

    The Impact Of U.S. Regional Business Cycles On Remittances To Latin America

    The current economic slowdown in the United States and the decline in remittance growth to some Latin American countries have intensified the interest in the relationship between these variables. The authors investigate whether host country conditions affect remittance outflows to Latin America, focusing on the roles of regional U.S. business...

    Provided By Stockholm School of Economics

  • White Papers // Jan 2009

    Genetic Variation In Preferences For Giving And Risk-Taking

    In this paper, the authors use the classical twin design to provide estimates of genetic and environmental influences on experimentally elicited preferences for risk and giving. Using standard methods from behavior genetics, they find strong prima facie evidence that these preferences are broadly heritable and the estimates suggest that genetic...

    Provided By Stockholm School of Economics

  • White Papers // Oct 2008

    How Exposure To Markets Can Favor Inequity-averse Preferences

    Outside the group selection framework, this paper shows how in the presence of general equilibrium effects non-individualistic preferences can be individual …fitness maximizing. The authors present the argument in the model, where individuals share among themselves an endowment and use the proceeds either for immediate consumption or for purchase of...

    Provided By Stockholm School of Economics

  • White Papers // Oct 2008

    Economic Growth And Growth Linkages In China 1994-2003

    This paper investigates to what degree neighboring Chinese provinces were linked to each other in terms of economic growth, income levels, and foreign direct investment during the period 1994-2003. When looking at mainland China, the authors find that both the level of income and the rate of income growth in...

    Provided By Stockholm School of Economics

  • White Papers // Oct 2008

    Gold Rush Dynamics Of Private Equity

    The authors develop a model with learning that likens private equity waves to gold rushes. Fund managers differ in talent, the stock of potential target firms is depletable, and investment profitability is inferred from past outcomes. The model produces waves with endogenous transitions from boom to bust. Supply and demand...

    Provided By Stockholm School of Economics

  • White Papers // Oct 2008

    Service-Sector Competition, Innovation And R&D

    The central prediction of the Aghion et al. (2005) model is an inverted U-shaped relation between innovation and competition. The model is built on the assumption of a product market and has not yet been empirically tested on service-sector firms. Using detailed firm-level data, the authors find the inverse U-shaped...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2008

    Boundarians That Shape Market Actors

    Business Associations operate in between markets and politics connecting these to each other through representation, rulemaking and information. In this paper it is demonstrated that there is a strong tendency in the literature to analyse business associations as part of either the political (eg. Doner & Schneider, 2000a; Greenwood, 2002;...

    Provided By Stockholm School of Economics

  • White Papers // Jul 2008

    Contracts And Promises - An Approach To Pre-Play Agreements

    In line with the widely applied principle of just deserts, the authors assume that the severity of the penalty on a contract offender increases in the harm on the other. When this principle holds, the influence of the efficiency of the agreement on the incentives to abide by it crucially...

    Provided By Stockholm School of Economics

  • White Papers // Jul 2008

    Accounting And Distributed Product Development

    This paper deals with the nature of product development and the impact of accounting practices on such developments. Through an in-depth case study at ABB Robotics the authors extend Dubois and Araujo's (2006) work on distributed product development. They find that distributed product development encompasses a mix of hierarchical and...

    Provided By Stockholm School of Economics

  • White Papers // Apr 2008

    Your Former Employees Matter: Private Equity Firms And Their Financial Advisors

    The author studies the impact of social networks on private equity firms' choice of financial advisors. In a unique dataset the author observes all individuals who have been involved in acquisitions and their changes of occupation from financial advisors to private equity professionals. The author finds that the social networks...

    Provided By Stockholm School of Economics

  • White Papers // Dec 2010

    Cross-Border Mergers And Greenfield Foreign Direct Investment

    The author presents a model of international trade and Foreign Direct Investment (FDI), where FDI is comprised of Greenfield FDI and Mergers and Acquisitions (M&A). Working in a monopolistically competitive environment, merging firms do not reduce competition. Mergers are motivated by efficiency gains and transfer of technology and expertise. The...

    Provided By Stockholm School of Economics

  • White Papers // Jun 2010

    Should Day Care Be Subsidized?

    In an economy with distortionary taxes on labor, can subsidies on day care, financed by an increase in taxes, raise welfare by encouraging women with small children to work? The authors show, within a heterogeneous-agent life-cycle framework, that the Ramsey optimal policy consists in equalizing consumption/leisure wedges over the life...

    Provided By Stockholm School of Economics

  • White Papers // May 2010

    Evolution Of Theories Of Mind

    This paper studies the evolution of peoples' models of how other people think - their theories of mind. First, this is formalized within the level-k model, which postulates a hierarchy of types, such that type k plays a k time's iterated best response to the uniform distribution. It is found...

    Provided By Stockholm School of Economics

  • White Papers // Dec 2010

    Trade With R&D Costs To Entering Foreign Markets

    In this paper, the author presents a quality ladders endogenous growth model where firms differ in their productivities. The author studies the effect openness to trade has on firm productivity and firm turnover. Most theoretical papers in this literature assume an exogenous firm turnover rate. In this paper, the firm...

    Provided By Stockholm School of Economics

  • White Papers // Apr 2010

    Robustness To Strategic Uncertainty In Price Competition

    The authors model a player's uncertainty about other players' strategy choices as probability distributions over their strategy sets. They call a strategy profile robust to strategic uncertainty if it is the limit, as uncertainty vanishes, of some sequence of strategy profiles in each of which every player's strategy is optimal...

    Provided By Stockholm School of Economics

  • White Papers // Mar 2010

    Costly Renegotiation In Repeated Bertrand Games

    This paper extends the concept of Weak Renegotiation-Proof equilibrium (WRP) to allow for costly renegotiation and shows that even small renegotiation costs can have dramatic effects on the set of equilibrium. More specifically, the paper analyzes the infinitely repeated Bertrand game. It is shown that for every level of renegotiation...

    Provided By Stockholm School of Economics

  • White Papers // Dec 2009

    Finding All Minimal CURB Sets

    Sets closed under rational behavior were introduced by the authors as subsets of the strategy space that contain all best replies to all strategy profiles in the set. They here consider a more restrictive notion of closure under rational behavior: a subset of the strategy space is strongly closed under...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2010

    Managing Multilayered Innovation Processes: Challenges Related To Embeddedness In Time And Space

    From organizational theory the authors know that firms tend to prioritize problems that are close in time and space. This paper develops a framework in order to understand how an innovation process is embedded into four different contexts that are drifting. These contexts are identified by introducing embeddedness in time...

    Provided By Stockholm School of Economics

  • White Papers // Oct 2008

    How Exposure To Markets Can Favor Inequity-averse Preferences

    Outside the group selection framework, this paper shows how in the presence of general equilibrium effects non-individualistic preferences can be individual …fitness maximizing. The authors present the argument in the model, where individuals share among themselves an endowment and use the proceeds either for immediate consumption or for purchase of...

    Provided By Stockholm School of Economics

  • White Papers // Sep 2010

    Ownership And High-growth Firms

    Empirical studies demonstrate that most net job-growth originates from a small number of High-Growth Firms (HGFs). The purpose of this paper is to analyze whether firm ownership - family, or private non-family - matters for being a HGF, using data covering all firms in Sweden during 1993-2006. Firm growth is...

    Provided By Stockholm School of Economics

  • White Papers // Oct 2008

    Economic Growth And Growth Linkages In China 1994-2003

    This paper investigates to what degree neighboring Chinese provinces were linked to each other in terms of economic growth, income levels, and foreign direct investment during the period 1994-2003. When looking at mainland China, the authors find that both the level of income and the rate of income growth in...

    Provided By Stockholm School of Economics

  • White Papers // May 2010

    China's Growing Influence In Southeast Asia - Monetary Policy And Equity Markets

    The authors use structural VAR models with short-run restrictions to analyze the potential transmission of China's monetary policy shocks to equity markets in Southeast Asia. Their results show that several of the markets in the region are influenced by China's monetary policy, even though the effect is modest. The impact...

    Provided By Stockholm School of Economics

  • White Papers // Apr 2008

    Your Former Employees Matter: Private Equity Firms And Their Financial Advisors

    The author studies the impact of social networks on private equity firms' choice of financial advisors. In a unique dataset the author observes all individuals who have been involved in acquisitions and their changes of occupation from financial advisors to private equity professionals. The author finds that the social networks...

    Provided By Stockholm School of Economics

  • White Papers // Oct 2008

    Gold Rush Dynamics Of Private Equity

    The authors develop a model with learning that likens private equity waves to gold rushes. Fund managers differ in talent, the stock of potential target firms is depletable, and investment profitability is inferred from past outcomes. The model produces waves with endogenous transitions from boom to bust. Supply and demand...

    Provided By Stockholm School of Economics

  • White Papers // Apr 2009

    Alma Mater Matters: The Value Of School Ties In The Venture Capital Industry

    This paper examines the role and estimates the economic value of social networks tied to academic institutions in the venture capital industry. The author shows that having a shared academic background increases the likelihood of matching between entrepreneurs and venture capitalists by 57%. Similarly, a shared academic background increases the...

    Provided By Stockholm School of Economics

  • White Papers // Jan 2011

    Wireless Enterprise Innovations: Raising Issues Of Temporality And Activities

    The overall research question guiding the papers' studies of mobility-in-use in organizations is: How are different activities of temporality affected when organizations implement and use new wireless solutions in their intra- and inter-organizational work and how might these temporality dimensions be linked to each other and its further meaning in...

    Provided By Stockholm School of Economics

  • White Papers // Jul 2009

    Optimal Categorization

    The importance of categorical reasoning in human cognition is well-established in psychology and cognitive science, and one of the most important functions of categorization is to facilitate prediction. This paper provides a model of optimal categorization. In the beginning of each period a subject observes a two-dimensional object in one...

    Provided By Stockholm School of Economics

  • White Papers // Apr 2009

    Automatic Fiscal Stabilizers In Sweden 1998-2009

    In this paper, the author examines how the responsiveness of the Swedish public budget to business-cycle conditions has developed between 1998 and 2009. The author documents substantial changes in three components behind the budget elasticity: the average level of personal income taxes has fallen substantially, the progressivity of personal income...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2010

    Mental Accounting In The Housing Market

    The authors report evidence that salience may have economically significant effects on homeowners' borrowing behavior, through a bias in favor of less salient but more costly loans. They outline a simple model in which some consumers are biased. Under plausible assumptions, the bias may affect prices in equilibrium. Market data...

    Provided By Stockholm School of Economics

  • White Papers // Mar 2010

    When Does The Price Affect The Taste? Results From A Wine Experiment

    The authors designed an experiment that examines how knowledge about the price of a good, and the time at which the information is received, affects how the good is experienced. The good in question was wine, and the price was either high or low. The results suggest that hosts offering...

    Provided By Stockholm School of Economics

  • White Papers // Jul 2009

    Uncovered Interest Parity In A Partially Dollarized Developing Country: Does UIP Hold In Bolivia? (And If Not, Why Not?)

    According to the Uncovered Interest Parity (UIP) condition, interest rate differentials compensate for expected exchange rate changes, equalizing the expected returns from holding assets which only differ in terms of currency denomination. In the previous literature, there are many tests of UIP for industrialized countries, and, more recently, some tests...

    Provided By Stockholm School of Economics

  • White Papers // Jul 2009

    The Effects Of Real Exchange Rate Depreciation In An Economy With Extreme Liability Dollarization

    This paper studies the effects of real exchange rate depreciation in an economy with extreme liability dollarization using Vector AutoRegression (VAR) methods. Bolivia's extreme liability dollarization makes it an interesting case for empirical testing of the contractionary-depreciations hypothesis. In contrast to the previous contractionary-depreciations literature, the paper uses identification assumptions...

    Provided By Stockholm School of Economics

  • White Papers // Mar 2009

    Epistemic Robustness Of Sets Closed Under Rational Behavior

    This paper provides two conditions of epistemic robustness, robustness to alternative best replies and robustness to non-best replies, and uses these to characterize variants of CURB sets in finite games, including the set of rationalizable strategies. A CURB set - mnemonic for 'Closed Under Rational Behavior' - is a Cartesian...

    Provided By Stockholm School of Economics

  • White Papers // Feb 2009

    The Impact Of U.S. Regional Business Cycles On Remittances To Latin America

    The current economic slowdown in the United States and the decline in remittance growth to some Latin American countries have intensified the interest in the relationship between these variables. The authors investigate whether host country conditions affect remittance outflows to Latin America, focusing on the roles of regional U.S. business...

    Provided By Stockholm School of Economics

  • White Papers // Jul 2008

    Contracts And Promises - An Approach To Pre-Play Agreements

    In line with the widely applied principle of just deserts, the authors assume that the severity of the penalty on a contract offender increases in the harm on the other. When this principle holds, the influence of the efficiency of the agreement on the incentives to abide by it crucially...

    Provided By Stockholm School of Economics

  • White Papers // Oct 2008

    Service-Sector Competition, Innovation And R&D

    The central prediction of the Aghion et al. (2005) model is an inverted U-shaped relation between innovation and competition. The model is built on the assumption of a product market and has not yet been empirically tested on service-sector firms. Using detailed firm-level data, the authors find the inverse U-shaped...

    Provided By Stockholm School of Economics

  • White Papers // Jan 2009

    Genetic Variation In Preferences For Giving And Risk-Taking

    In this paper, the authors use the classical twin design to provide estimates of genetic and environmental influences on experimentally elicited preferences for risk and giving. Using standard methods from behavior genetics, they find strong prima facie evidence that these preferences are broadly heritable and the estimates suggest that genetic...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2009

    Identity And Redistribution

    This paper models the interaction between individuals' identity choices and redistribution. Both redistributive policies and identity choices are endogenous, and there might be multiple equilibrium. The model is applied to ethnicity and social class. In equilibrium with high taxes, the poor identify as poor and favor high taxes. In equilibrium...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2008

    Boundarians That Shape Market Actors

    Business Associations operate in between markets and politics connecting these to each other through representation, rulemaking and information. In this paper it is demonstrated that there is a strong tendency in the literature to analyse business associations as part of either the political (eg. Doner & Schneider, 2000a; Greenwood, 2002;...

    Provided By Stockholm School of Economics

  • White Papers // Jul 2008

    Accounting And Distributed Product Development

    This paper deals with the nature of product development and the impact of accounting practices on such developments. Through an in-depth case study at ABB Robotics the authors extend Dubois and Araujo's (2006) work on distributed product development. They find that distributed product development encompasses a mix of hierarchical and...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2010

    The Formation Of New Business Ventures In Networks The Formation Of New Intermediaries And Creation Of Value From The Exploitation Of Technology

    This paper analyzes new business formation connected to the use of established mobile technologies and associated services. The purpose of the paper is to describe how a set of alternative business network situations can emerge when established wireless application technologies are exploited and new value is created and new business...

    Provided By Stockholm School of Economics

  • White Papers // Aug 2010

    Connecting Temporal And Spatial Dimensions In Business Practice - With Application To Globalization Of Markets

    The purpose of the paper is to develop a conceptual framework for analysis of time/space configurations in a business practice perspective on network dynamics. The authors regard business practice as performative in the shaping of networks. Thus they see markets as socially and materially constructed, stabilized and changed, in complex,...

    Provided By Stockholm School of Economics