Browsing Discussion paper (CEBR) by Year Published
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Poutvaara, Panu; Siemers, Lars (København, 2007)[More information][Less information]
Abstract: We study the social interaction of non-smokers and smokers as a sequential game, incorporating insights from social psychology and experimental economics into an economic model. Social norms a®ect human behavior such that non-smokers do not ask smokers to stop smoking and stay with them, even though disutility from smoking exceeds utility from social interaction. Overall, smoking is unduly often accepted when accommodating smoking is the social norm. The introduction of smoking and non-smoking areas does not overcome this speci¯c ine±ciency. We conclude that smoking bans may represent a required (second-best) policy. smoking policy, health, social norms, guilt aversion, social interaction URI: http://hdl.handle.net/10398/7702 Files in this item: 1
artikel 14.pdf (283.5Kb) -
le Maire, Daniel; Schjerning, Bertel (København, 2007)[More information][Less information]
Abstract: This paper investigates the relationship between self-employment choice, expected earnings, and uncertainty. Several interesting results emerge from our analysis on Danish longitudinal register data: Firstly, self-employed (taxable) personal income bunch at kink points in the tax system since self-employed can retain earnings and thereby transfer income across tax-years. Secondly, expected income level and income variance are important determinants in choice of occupation. Thirdly, men put more emphasis on expected earnings level, while women appears more risk averse, which contribute to explain why fewer women are self-employed. Finally, our results suggest that non-western immigrants are marginalized into self-employment. Occupational choice, self-employment, wage-dierentials, income uncertainty, risk aversion, overcon dence, self-selection, gender dierences. URI: http://hdl.handle.net/10398/7701 Files in this item: 1
artikel 04.pdf (261.1Kb) -
Keuschnigg, Christian; Nielsen, Søren Bo (København, 2007)[More information][Less information]
Abstract: In financing start-up firms, venture capitalists carefully select among alternative projects, design incentive compatible financial contracts and support portfolio companies with value enhancing managerial advice. This paper considers how venture capitalists can induce self-selection among entrepreneurial firms with different qualities by designing appropriate contracts and offering commercial support. We study the efficiency of the competitive market equilibrium with respect to the level and quality of entrepreneurship and the level of effort by entrepreneurs and venture capitalists. We also provide comparative statics results with respect to basic preference and technology parameters. Venture capital, entrepreneurship, self-selection, moral hazard. URI: http://hdl.handle.net/10398/7707 Files in this item: 1
artikel 07.pdf (407.6Kb) -
Määttänen, Niku; Poutvaara, Panu (København, 2007)[More information][Less information]
Abstract: We study the welfare effects of earnings testing flat-rate old-age benefits in a quantitative overlapping generations model with idiosyncratic labor income risk. In our model economy, even a moderate earnings testing reduces individuals’ expected lifetime utility, whenever other taxes are taken into account. Moreover, it also lowers the realized lifetime utilities of those at the bottom of the lifetime utility distribution. Social security; Retirement; Means-testing URI: http://hdl.handle.net/10398/7705 Files in this item: 1
artikel 09.pdf (315.4Kb) -
Kanniainen, Vesa; Poutvaara, Panu (København, 2007)[More information][Less information]
Abstract: This paper identifies several distortions which create barriers to entrepreneurship. First, in addition to the innate entry cost, there are entry costs caused by regulation. Second, union wage policies raise the opportunity cost of entrepreneurship. Third, inefficiencies in the transmission of tacit knowledge between generations of entrepreneurs can arise: with access to within-family ownership transfer, the outside market for entrepreneurship operates as a lemon’s market. This problem becomes relevant when the economic life of a business idea exceeds the active life of an entrepreneur. barriers to entrepreneurship, tacit knowledge, occupational choice URI: http://hdl.handle.net/10398/7711 Files in this item: 1
artikel 18.pdf (210.7Kb) -
Munch, Jakob Roland; Rose Skaksen, Jan; Malchow-Møller, Nikolaj (København, 2007)[More information][Less information]
Abstract: While immigration is unlikely to affect the employment of native workers in the long run, employment of immigrants may be associated with significant short-run adjustment costs for native workers as they have to fi nd alternative employment or are temporarily pushed into unemployment. In this paper, we therefore study the impact of immigrants at the workplace on the employment of native co-workers using a rich matched worker-fi rm data set for Denmark. Estimation of a single risk duration model for job spells of native workers shows that job separation rates increase if more immigrants are hired, especially when it comes to immigrants from Eastern Europe and less developed countries (LDCs). Furthermore, in a competing risks duration model, we fi nd that while immigrants from LDCs increase the unemployment risk for native workers, immigrants from Eastern Europe instead increase the job change probability of native workers. Thus, adjustment costs for native workers are more likely in the case where LDC immigrants are hired. Finally, we fi nd that the results only apply for low-skilled native workers. URI: http://hdl.handle.net/10398/7510 Files in this item: 1
wp17-2007.pdf (729.2Kb) -
Could Prosperity Backfire?Priks, Mikael; Poutvaara, Panu (København, 2007)[More information][Less information]
Abstract: Empirical evidence reveals that unemployment tends to increase property crime but that it has no effect on violent crime. To explain these facts, we examine a model of criminal gangs and suggest that there is a substitution effect between property crime and violent crime at work. In the model, non-monetary valuation of gang membership is private knowledge. Thus the leaders face a trade-off between less crime per member in large gangs and more crime per member in small gangs. Unemployment increases the relative attractiveness of large and less violent gangs engaging more in property crime. Violence, Crime, Gangs, Unemployment, Identity URI: http://hdl.handle.net/10398/7692 Files in this item: 1
artikel 13.pdf (172.5Kb) -
Schneider, Cédric (København, 2007)[More information][Less information]
Abstract: The aim of this paper is to study the determinants of the outcomes of patent applications (withdrawal, refusal or grant). The application process at the European Patent O¢ ce is modelled in three stages, using a Trivariate Probit model with double selectivity correction in order to test whether the applicants patenting history has an eect on the outcome of the current application. I investigate the behavior of the applicant after the patent o¢ ce has established the "state of the art", a precondition to an invention being patentable. The main results are (i) rms with large patents portfolios act following a "trial and error" strategy, by applying for large numbers of patents and thereafter waiting for the patent o¢ ce s nal decision when the expected probability of grant is high, (ii) the technological importance of a patent is a crucial determinant of a successful application grant, (iii) a withdrawal is to be regarded as an expected refusal, since applicants tend to withdraw their applications when there is evidence that the inventions cannot be considered to be novel or to involve an inventive step. patents, intellectual property rights URI: http://hdl.handle.net/10398/7693 Files in this item: 1
artikel 12.pdf (278.2Kb) -
Poutvaara, Panu (København, 2007)[More information][Less information]
Abstract: This paper analyzes educational choices and political support for subsidies to higher education in the presence of a time-consistency problem in income redistribution. There may be political support for so generous subsidization that it motivates the median voter to obtain higher education. As a result of increasing own income, the median voter prefers in the future lower taxes than without higher education. Therefore, the expansion of participation in higher education during the second half of the 20th century may have partly been driven by the aim to limit the political support for overly generous income redistribution. education, time-consistency problem, voting, subsidies to education URI: http://hdl.handle.net/10398/7684 Files in this item: 1
artikel 17.pdf (191.4Kb) -
Fehr, Hans; Habermann, Christian (København, 2007)[More information][Less information]
Abstract: The present paper studies the growth and efficiency consequences of tax-favored individual retirement accounts in a general equilibrium overlapping generations model with idiosyncratic lifespan and labor income uncertainty. We distinguish between economies with rational and with hyperbolic consumers and compare the consequences of mandatory and voluntary retirement plans with and without annuitized benefits. While a full taxation of capital income yields the highest efficiency gains in the rational consumer model, annuitization and hyperbolic discounting substantially improve the economic efficiency of IRAs. We also show that annuitization alters the intergenerational welfare consequences of the reform substantially, since it reduces accidental bequests. Finally, even if mandatory saving programs have a clear cost advantage, they are only recommendable if consumers are myopic. individual retirement accounts, annuities, stochastic general equilibrium, hyperbolic consumers URI: http://hdl.handle.net/10398/7710 Files in this item: 1
artikel 11.pdf (258.2Kb) -
Munch, Jakob Roland; Rose Skaksen, Jan; Malchow-Møller, Nikolaj (København, 2007)[More information][Less information]
Abstract: We propose a complementary approach to analyze the impact of immigration on the wages of native workers. Using linked employer-employee data from Denmark for a relatively long time period (1993-2004), we study the consequences of an increased use of immigrants at the most disaggregate level – the workplace. We find that an increase in the share of workers from less developed countries at the workplace has a signifi cantly negative effect on the wages of natives – also when controlling for potential endogeneity using both fi xed effects and IV. The use of immigrants from more developed countries also appears to be correlated with wages. However, these correlations disappear when controlling for unobserved fi rm and worker characteristics and are thus likely to reflect selection rather than a causal effect of these immigrants. Finally, we find a positive impact on the wages of native workers from having Eastern European co-workers. URI: http://hdl.handle.net/10398/7638 Files in this item: 1
wp18-2007.pdf (697.2Kb) -
Kolm, Ann-Sofie; Nielsen, Søren Bo (København, 2007)[More information][Less information]
Abstract: To examine the effects on labor market performance of government tax and enforcement policies, this paper develops an equilibrium model featuring tax evasion, matching frictions, and worker-firm wage bargains. In the wage bargains, workers and firms can agree on the amount of remuneration that should not be reported to the tax authorities. We find that increased taxation actually reduces unemployment, whereas more zealous enforcement has the opposite effect. URI: http://hdl.handle.net/10398/7699 Files in this item: 1
artikel 10.pdf (464.6Kb) -
The Effect on Transitional GenerationsKoethenbuerger, Marko; Poutvaara, Panu (København, 2007)[More information][Less information]
Abstract: We show that taxation of rents may yield an intergenerational Pareto-improvement in a small open economy provided tax revenues are earmarked to reduce wage taxes. Previous literature has shown that rent taxation benefits current young and future generations, while we show that it also benefits the current old generation when the initially prevailing tax mix is sufficiently skewed towards wage taxation. Rent Taxes, Capitalization, Transitional Dynamics, Labor Supply, Asset Prices. URI: http://hdl.handle.net/10398/7685 Files in this item: 1
artikel 08.pdf (154.1Kb) -
Rosholm, Michael; Scheuer, Christian; Sørensen, Anders (København, 2007)[More information][Less information]
Abstract: This paper investigates the impact of globalization, in the sense of increasing international trade, on the demand for skills in Danish manufacturing companies. The study is based on a unique data set that enables us to develop rich measures of international outsourcing and import penetration. Moreover, the data also allows several strategies to strengthen the causal interpretation of our results. The main finding of the analysis is that it is of crucial importance to distinguish imports - both in the form of outsourcing and overall imports - by country-of-origin. We find that international trade with low-wage countries leads to skill-upgrading. This is especially pronounced for import penetration with a ceteris paribus contribution of around fifty percent to skill-upgrading. Moreover, we find that import penetration in goods originating from high-wage countries lead to skill-downgrading. This latter result suggests that Danish manufacturing has comparative advantage in skill intensive production when compared to low-wage countries, but in unskill-intensive production when compared to high-wage countries. Skill-upgrading, Low-wage country outsourcing, Low-wage country import penetration, Comparative advantage URI: http://hdl.handle.net/10398/7709 Files in this item: 1
artikel 20.pdf (389.3Kb) -
Country-of-Origin or End-Use of Products.Sørensen, Anders (København, 2007)[More information][Less information]
Abstract: This paper investigates the empirical consequences for the relationship between skill upgrading and internationalization by decomposing import after country-of-origin and after the end-use of products. I find that the break-down after country-of-origin is of crucial importance, implying that international trade with low-wage countries leads to comprehensive skill upgrading, whereas international trade with high-wage countries leads to skill downgrading in Danish Manufacturing. The empirical literature on skill-upgrading and internationalization has mainly focused on international outsourcing and has to a large extent disregarded import penetration. By splitting import after country-of-origin, this reintroduces import penetration as an important explanation for skill upgrading. skill upgrading, import, country-of-origin, end-use of products URI: http://hdl.handle.net/10398/7686 Files in this item: 1
artikel 19.pdf (143.0Kb) -
Omfang, udvikling og konsekvenserMalchow-Møller, Nikolaj; Rose Skaksen, Jan; Munch, Jakob Roland; Aastrup Jensen, Claus (København, 2007)[More information][Less information]
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Do Police Reduce Group Violence?Priks, Mikael; Poutvaara, Panu (København, 2007)[More information][Less information]
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Konsekvenserne for løn og beskæftigelseMunch, Jakob Roland; Rose Skaksen, Jan; Malchow-Møller, Nikolaj (København, 2007)[More information][Less information]
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Er Danskere Specielle?Munch, Jakob Roland; Rose Skaksen, Jan; Schroll, Sanne; Malchow-Møller, Nikolaj (København, 2006)[More information][Less information]
Abstract: Denne artikel belyser holdninger til immigration blandt borgere i Danmark og de øvrige EU-15 lande - herunder holdningerne til immigration, der følger af den seneste EU-udvidelse. Det analyseres, hvilke faktorer der ligger til frund for disse holdninger, samt i hvilken udstrækning danskere afviger fra EU-gennemsnittet. Den typiske dansker er lidt mere skeptisk overfor immigration end andre europæere. Danskerne afskiller sig desuden ved, at forholdsvis få forbinder øget immigration med negative konsekvenser for arbejdsmarkedet, men forholdsvis mange forbinder det med højere omkostninger for velfærdsstaten. Når der tages hensyn til opfattelserne af de økonomiske konsekvenser af immigration, kommer Danmark til at fremstå som et væsentligt mere immigrationsskeptisk land, end hvad der kommer til udtryk i de ukorrigerede holdninger. URI: http://hdl.handle.net/10398/7564 Files in this item: 1
ap_2006-01_001.pdf (411.2Kb) -
Fosfuri, Andrea; Rønde, Thomas (København, 2006)[More information][Less information]
Abstract: We study a situation in which an R&D department promotes the introduction of an innovation, which results in costly re-adjustments for production workers. In response, the production department tries to resist change by improving the existing technology. We show that firms balancing the strengths of the two departments perform better. This principle is employed to derive several implications concerning the hiring of talents, monetary incentives, and technology investment policies. As a negative effect, resistance to change might distort the R&D department’s effort away from radical innovations. The firm can solve this problem by implementing the so-called ”skunk works model” of innovation where the R&D department is isolated from the rest of the organization. Resistance to change, innovation, skunk works model, contest. URI: http://hdl.handle.net/10398/7691 Files in this item: 1
artikel 02.pdf (561.0Kb)