In 2002/2003, the Nordic hydro-dominated power market faced a short-term supply shock. In autumn, precipitation and inflow were unusually low. As a result, there were record high prices in the following winter. Questions were raised whether the deregulated market creates sufficient incentives to...

The Multiplicative Ergodic Theorem provides a novel general methodology to analyze rational expectations models with stochastically varying coefficients. The approach is applied for the first time to economics and analyzes the canonical New Keynesian model with a Taylor rule which switches...

While rational expectations models with time-varying (random) coefficients have gained some esteem, the understanding of their dynamic properties is still in its infancy. The paper adapts results from the theory of random dynamical systems to solve and analyze the stability of rational...

Using Dutch data on pupils in elementary school this paper is the first empirical study that analyzes whether assigning homework has an heterogeneous impact on pupil achievement. Addressing potential biases that arise from unobserved school quality, pupil selection by exploiting different...

This paper analyzes the effect of assigning homework on student achievement using data from 16 OECD countries that participated in TIMSS 2007. The model exploits withinstudent variation in homework across subjects in a sample of primary school students who have the same teacher in two related...

Good teachers are the backbone of a successful education system. Yet, in developing countries, teachers' content knowledge is often inadequate. This study documents that primary school math teachers in the department of Moraz'an in El Salvador only master 47 percent of the curriculum they teach....

In this paper, we describe the approach to, and experience of, the deregulation and liberalisation of the Norwegian electricity sector from 1991. The Norwegian electricity market was subsequently integrated with the Swedish, Finnish and Danish markets to become the Nordic electricity market: the...

This paper describes an individual choice experiment that can be used to teach students how to correctly account for opportunity costs in production decisions. Students play the role of producers who require a fuel input and an emissions permit for production. Given fixed market prices, they...

We study the effects of various environmental regulations on environmental performance measured as emission intensity. Moreover, we aim to test whether any such effects are persistent or only temporary. Conventional theory predicts that indirect regulations as opposed to direct regulations...

We evaluate how nonresponse affects conclusions drawn from survey data and consider how researchers can reliably test and correct for nonresponse bias. To do so, we examine a survey on labor market conditions during the COVID-19 pandemic that used randomly assigned financial incentives to...