Publications

This volume is a tribute to Erik Dahmén on the occasion of his 75th birthday. Professor Dahmén's innovative and influential contributions to the study of economic development began more than 50 years…

Multinational Investment in Developing Countries explores the struggle for gains from direct investment between multinationals and developing countries. The author explains differences in taxation and…

Bengt-Christer Ysander has had a varied career in many locations. The largest share by far of his academic writing took place during his eight years (1978-1985) at IUI. We-a current and a former presi…

ROBERT M. SOLOW received the prize in economics in memory of Alfred Nobel in 1987. The award was given in recognition of Professor Solow's influential studies on the factors behind macroeconomic growt…

Governments now widely recognize that long-term economic growth hinges on a country's ability to adopt and develop new technology. To stimulate technological capability most countries therefore mainta…

This paper presents the need of a European agenda for East Asia. The root of East Asian dynamism lies in an actively pursued export-oriented development strategy. The consequences embrace new opportun…

This paper analyses the behaviour of competing governments in the EC with respect to inflows of direct investment. Solving a non-cooperative sequential bargaining game in which host countries gain fro…

Pollution and polluters can move across national boundaries, but governments which seek to maximize social welfare should coordinate optimal environmental protection through transfer payments or commi…

Norrlandsutredningen intar en särställning i lUIs historia. Redan dess omfattning och varaktighet ger den en förstarangsplats bland institutets tidigaste utredningar. Tidvis svarade den för mer än häl…

It is shown that when the effects of an increase in unemployment subsidies are studied in a general equilibrium framework, unemployment increases far less than in a "partial-partial" model. In fact, t…

In a world with multinational companies (MNC's) changes such as those implied by the realization of EC's internal market will affect the locational choice made by geographically mobile MNC's outside t…

The paper provides a means of estimating, with a given parameter of conjectural variation, international trade barriers under imperfect competition from data on market shares of different countries an…

This paper discusses the impact of the completion of the EC internal market on the competitive position of EFTA firms (and, hence, also on economic growth in EFTA countries). The discussion falls in t…

The paper examines the constraint import competition imposes on the price-cost margins in Swedish manufacturing industries. It addresses two questions. Has the free trade agreement between the EC and…

The paper presents a first attempt at assessing general equilibrium effects of 1992. Two kinds of general equilibrium effects are relevant: one (dampening) effect stemming from the common resource con…

The aim of this study is to discuss and to quantify the macroeconomic effects of further European integration on the countries outside the European Community. We use Finnish economy as an example in o…

Productive factors such as human and physical capital are accumulated and trade can affect the steady-state levels of such factors. Consequently, trade liberalization will have dynamic effects on outp…

This paper examines the problem of nonexistence of equilibrium in a simple search model with asymmetric information. A pure-strategy, symmetric Nash equilibrium fails to exist because adverse selectio…

The firm is defined in terms of its financial objectives, achieved through human-based organizational competence, conferring scale economies on all other factors. Competence is developed through organ…

The importance of free innovative entry (deregulation) for diversity of structure and competition is studied. I demonstrate quantitatively that even with a narrow definition of entry (firms), and give…

This paper deals with the physical location of firms although other interpretations are also possible. It is a well-known fact that firms in certain industries tend to cluster. However, since you woul…

Working Paper No. 256 is published as "The Knowledge Based Information Economy" (authors: Gunnar Eliasson, Stefan Fölster, Thomas Lindberg, Tomas Pousette and Erol Taymaz). Stockholm: Industrial Insti…

This paper describes how large, typically multi-technology corporations build up and exploit their technological capability by purchasing small, technology-based firms in order to acquire their techno…

International Financial Integration discusses the importance and the implications of this particular type of integration and then looks at the most important problems connected with measuring it. Diff…

This book is an outcome of a joint project by The Nordic Perspective Group, formed by four Nordic research institutions: ETLA in Helsinki, IFF in Copenhagen, IUI in Stockholm and NØI in Bergen. The N…

The implications of the knowledge-based information economy are studied conceptually and statistically. Innovation, economic coordination, and diffusion of knowledge are found to be dominant resource-…

It was early noted that the Phillips Curve explanation of wage dynamics lacks a solid microeconomic basis. As the explanatory unemployment variable in the Phillips relation is intuitively to be regard…

Firms having significant shareholdings in one another is not an unusual phenomenon in countries where the law admits such ownership arrangements, like Sweden and Japan. In this paper the role of cross…

This paper studies the relative importance of tax incentives as merger motives in the Swedish industry during the period 1983-1987. Several econometric models are estimated and statistical tests perfo…

A general method is described which allows a production activity to be analyzed by means of input data only. According to duality theory, the input cost shares can be completely specified without any…

State subsidies to R & D or innovative investments in firms are organized in many different ways. Examples from the plethora of extant subsidy instruments are tax incentives, grants to researchers…

Over the course of the last 10 or 15 years there appears to be taking place a fundamental shift in the "industrial paradigm" governing the nature of competition in advanced industrial markets. Among t…

This paper reviews a growing literature investigating how economic agents may learn rational expectations. Fully rational learning requires implausible initial information assumptions, therefore some…

In a market with information costs, i.e., a search market, the equilibrium formation of prices and outputs will differ significantly from that of a purely competitive market. The equilibrium will be e…

To efficiently realize a specified goal in a distributive fashion, there needs to be an appropriate "division of labor." This is true for distributive algorithms that take advantage of the concurrent…

This paper studies the effects of the Swedish investment funds system (IF) on the cost of capital. It is shown that the incentive effects critically depend on which "regime" the firm is in when the fu…

State subsidies to R & D or innovative investments in firms are organized in many different ways. Examples from the plethora of extant subsidy instruments are tax incentives, grants to researchers…

Sweden has for a long time spent large resources on labor market policies targeted to the unemployed. In the Anglo-Saxon labor economics literature new methods have been developed for the purpose of e…

Stylized facts indicate that small firms are responsible for a disproportionate share of innovative research. There are many possible explanations for this facto The paper seeks to understand this phe…

This paper utilizes data from a Swedish household survey for 1984 (The HUS data) in combination with data on public daycare fees and spaces per child by community. We argue that the subsidy rate and a…

To assess the merits of the market for corporate control, this paper examines two processes which standard analysis does not study: the allocation of economic competence and the evolution of organizat…

The lead theme of this essay asserts that a model of economic growth has to be explicit about the market dynamics of firm behavior. Firm dynamics originates in innovative behavior and in the price and…