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The article "The right look," by Niclas Berggren, Henrik Jordahl (IFN) and Panu Poutvaara, was during the last 90 days the most downloaded text of all published by the Journal of Public Economics. The researche shows that conservative politicians are better looking and that this might create an overall advantage for conservative parties. "We are both happy for and surprised by the great interest in our research on the role of beauty in politics – in particular, we find that beauty can be found to characterize and benefit politicians on the right," said Niclas Berggren.

On March 22, the 20th edition of the European Perspective, entitled The trust in the EU at a crossroads, was presented in Malmö Börshus. Almost 200 participants had come to listen to panel discussions with the authors of the anthology. Lars Oxelheim, who is affiliated to the IFN, organized the event – which was sponsored by the EU Representation in Stockholm. One of the authors, IFN-researcher Andreas Bergh, asked whether confidence in Europe is threatened by the increased migration. He presented the answers given in his chapter in the book.

On Wednesday Margarita Tsoutsoura, University of Chicago, presented a study – “Firm Growth and Labor Reallocation after Exposure of Corrupt Practices”– during an academic seminar at IFN. Coming from Greece, she explained, "I certainly can see the value in good government and fighting corruption". Adding that she wants to better understand how corruption affects the economy in general and firms in particular. Margarita Tsoutsoura's research also include studies of tax evasion and corporate governance.

At a seminar in Swedish Parliament Mikael Stenkula, IFN, commented a new report, Marginalskatter och Sveriges konkurrenskraft (Almega) by Anders Ydstedt, Scantech. The author noted that Sweden has the world's highest marginal tax rates. One of the entrepreneurs interviewed for the report said that two thirds of the doctors employed at the medical centers owned by his company, are working part-time because it does not pay to work more. Mikael Stenkula commented that the report is well written but that he would have liked more of an entrepreneurial perspective. He also explained that it is difficult and thus gives uncertain result to estimate the impact in absolute terms by changes in the tax system.

Hernando de Soto is the 2017 winner of the Global Award for Entrepreneurship Research. Mr de Soto received the Award "for developing a new under-standing of the institutions that underpin the informal economy as well as the role of property rights and entrepreneurship in converting the informal economy into the formal sector."

Some 20 Norwegian business executives, who participate in the Executive MBA program at the Business School in Kristiansand, visited IFN on Tuesday. Professor Magnus Henrekson, managing director of IFN, presented the book Understanding Entrepreneurship – Definition, Function, and Policy. Magnus Henrekson defined entrepreneurship as "an individual's ability and willingness to independently or within organizations discover and create new economic opportunities," etcetera.

In Sweden, in contrast to other countries, the wealth is more evenly distributed thanks to inheritance. This is the gist of an article by Mikael Elinder, Oscar Erixson and Daniel Waldenström, IFN, in the latest issue of Ekonomisk Debatt. "Somewhat surprisingly, we find that inheritance tax increased wealth inequality" the researchers write. In the same issue of Ekonomisk Debatt Johanna Rickne, affiliated to IFN, and Olle Folke, Uppsala University, show that promotion to a top job often lead to divorce for women but not for men. "Our results indicate that promotions trigger divorce when it is contrary to earlier expectations, and social norms, relative to certain levels of paid and unpaid household work," the researchers write.

The Swedish welfare state is step-by-step heading towards a much worse crisis than in the 1990s, explains Mårten Blix, IFN, in his new book Digitalization, Immigration and the Welfare State (Edward Elgar Publishing). He writes that digital technologies are set to strengthen already existing trends towards job and wage polarization. He points out that the automation in the work place makes it increasingly difficult to maintain high income taxes and payroll taxes.

Magnus Henrekson, IFN, and Åsa Hansson, Lund University and affiliated to IFN, spoke on Wednesday at a seminar in Swedish Parliament. The Tax Committee had gathered Swedish tax experts to discuss "tax reform 25 years – its history and future." Two former ministers opened the seminar: Erik Åsbrink and Bo Lundgren. Followed by Magnus Henrekson who explained how taxation is linked to entrepreneurship and growth. Åsa Hansson sorted out the concepts of uniform and optimal taxation.

On Thursday January 19, Henrik Jordahl, IFN, presented a report he authored in collaboration with David Sundén: ”Vinstbegränsningar i välfärden” (“Profit caps in the welfare sector”, published by the Confederation of Swedish Enterprise). The report shows the socio-economic impact of introducing the kind of profit caps suggested by Illmar Reepalu in a report to the government. Jordahl explained that the bases for the Reepalu report are false. For example, there is no big money to be made from the so-called leakage of tax revenue from for-profit firms in the welfare sector. "We are talking about 6 per mille of the costs for these services," he said.

Thursday January 12, Magnus Henrekson was part of a panel discussing how the Swedish education system might move onward following the disclosure of PISA and TIMSS (international assessments of the performance of Swedish students). He explained that competition in the education market requires tests (resulting in grades) being verified by the State or a third party, measuring the knowledge of students. He compared, in this respect, schools with pharmaceutical companies: "When teachers determine the grades of the students they are teaching it is as if the pharmaceutical companies themselves would determine that different drugs should be approved. The seminar was organized by the Expert Group on Public Economics (ESO).

Research questions and focus is constantly changing. But basically the research at IFN is carried out within the framework of five research programs: Economics of Entrepreneurship, Globalization and Corporate Restructuring, Economics of the Service Sector, Economics of Electricity Markets and  Economics of Institutions and Culture."IFN is one of Sweden’s leading research environments within the field of economics," said Professor Magnus Henrekson, Managins Director of the Institute. "We undertake research relevant to policy without sacrificing scientific quality, which is the only way to win the confidence of researchers, experts, and decision-makers."

IFN's research results are published in different channels. All research is first presented in a working paper. In 2016 some 40 such papers were published at IFN. The next step is publication in a peer reviewed scientific journal. The topics of the most recent articles accepted for publication in such journals range from the attraction of consumption to social networks and the gap in the labor market between domestic and foreign-born.
 

30 years after James Buchanan was awarded the Nobel Prize in Economic Sciences Niclas Berggren, IFN, and Karin Svanborg-Sjövall, Timbro, discussed the legacy of Buchanan in a podcast turned into a stage talk. One of the issues discussed was the legal policy framework needed, in the event that a politician is driven by self-interest. Donald Trump was mentioned. Niclas Berggren explained that Buchanan's idea was to set limits to what politicians can do. "When a person of a certain nature take power it is very important that we have institutions in place that can balance the power."

IFN researchers write opinion pieces, including columns, based on research. In 2016, about 80 such articles were published, mainly in Swedish media, on topics including school, integration of immigrants and the labor market. The researchers also wrote about stock options for employees, health care, currency wars etcetera.

If you have a quiet moment during the holidays, we encourage you to explore our archives and read one or more of the articles. Most of the topics are as relevant today as when they were published.

Erik Lundin, researchers at IFN, has studied what transpired when parts of the Swedish electricity distribution sector was privatized. He explains in a short film how economies of scale resulted in: "The acquired networks increased labor efficiency by on average 18 percent, while no effect is found on the price." Since the purchases included several neighboring power grids, previously run by separate municipalities, the study shows that the entire effect can be explained by increased economies of scale, questioning the causal effect of privatization per se.

Ola Andersson’s research is about risk taking, and also about automated school choice. He talks about both of these fields in a new podcast and also about a new research project that will be launched next year. "We can to place 8500 students in a minute" he says of automated school choice. Which is a substantiel reducion in time – so far it has taken several months. In regards to risk-taking Ola Andersson’s research shows that with the "wrong" contract, we can all become too risk averse with other people's money.

Without entrepreneurship and leadership Sweden can not evolve, explained Professor Magnus Henrekson, IFN, at a seminar organized by the trade organization Almega. "People must acquire the right skills. But generally speaking, we tend yo have to much confidence in formal education." He explained that people with motivation, persistence and capacity are needed to work with the structures. "But more and more tasks can be learned on the job."

Mats Hilding, Managing Director Axelent, visited IFN on Tuesday to present his firm, its expansion and challenges. All in a vivid dialogue with researchers. He explained how Axelent, which manufactures protective equipment for e.g. industrial robots, has grown and now has subsidiaries in 10 countries. Mats Hilding told how the structure of categories of employees has changed over the years. Something that also Fredrik Heyman, IFN, talked about when he presented his research in this field.