We develop a stochastic dynamic model of bank value maximization under limited liability and in which bankruptcy can occur. Main issues are banks’ optimal responses to regulation and credit-losses. We show that risk-neutral banks behave as if they were risk-averse when they are...

The centrality of an agent in a network has been shown to be crucial in explaining different behaviors and outcomes. In this paper, we propose an axiomatic approach to characterize a class of centrality measures for which the centrality of an agent is recursively related to the centralities of...

In 2007, the Swedish employer-paid payroll tax was cut on a large scale for young workers, substantially reducing labor costs for this group. Using Difference-in-Differences paired with exact matching, we estimate a small impact, both on employment and on wages, implying a labor demand...

We test whether people's tendency to stick with the default option can help save resources. In a natural field experiment we switch printers' default settings, from simplex to duplex printing, at a large Swedish university. The results confirm that roughly one third of all printing is determined...

We examine how an education policy intervention - the introduction of a comprehensive school in Sweden that increased the number of compulsory years of schooling, affected cognitive and non-cognitive skills and long-term health. We use administrative and survey data including background...

When the interbank market risk premium soared during the finnancial crisis, it created a wedge between interest rates actually paid by private agents and the rapidly falling policy rates. Many central banks attempted to improve the situation by supplying liquidity to the domestic interbank...

This paper analyzes if privatization of vocational rehabilitation can improve labor market opportunities for individuals on long-term sickness absence. We use a field experiment performed by the Employment Service and the Social Insurance Agency in Sweden during 2008 to 2010, in which over 4,000...

We explore gender differences in preferences related to altruism, fairness, cooperation, trust, coordination, risk and competitiveness in an experiment with a large random sample of the Swedish population. In addition to a baseline treatment, we have treatments where participants are primed with...

In this brief comment, we return to the question raised in Dahlberg, Edmark and Lundqvist (2012) concerning a causal relationship between ethnic diversity and preferences for redistribution. A re-analysis of their study indicates that the results are based on a severe sample selection bias and...

This paper analyzes the effect of two age-targeted policy initiatives to delay retirement that were simultaneously implemented in Sweden in 2007: an earned income tax credit and a payroll tax credit. Both policies were targeted at workers aged 65 or above at the beginning of the tax year. The...