This paper investigates the causal link between the ethnic diversity in a society and its inhabitants’ preferences for redistribution. We exploit exogenous variation in immigrant shares stemming from a nationwide program placing refugees in municipalities throughout Sweden during 1985–94 and...

This paper uses data on Swedish local governments to test for strategic interaction in local tax setting. We make use of a number of indirect predictions from the theories of tax competition and yardstick competition in order to test for the presence of strategic interaction in these forms....

This article makes use of individual data from 2004 to 2008 on owners of closely held businesses in Sweden to estimate the role of both tax and non-tax determinants in the choice to be a closely held corporation (CHC) versus a proprietorship. Although lower-income individuals face relatively...

This study analyses whether the Swedish school choice reform, enacted in 1992, had differential effects for students from different socio-economic backgrounds. We use detailed geographical data on students' and schools' locations to construct measures of the degree of potential choice. This...

In this paper we investigate whether local governments react on the welfare benefit levels in neighboring jurisdictions when setting their own benefit levels. We solve the simultaneity problem arising from the welfare game by utilizing a policy intervention; more specifically, we use a centrally...