A survey of economic thought in Sweden, 1875–1950

Abstract

My subject is the economic debate in Sweden during the last seventy-five years. Though that must not be taken as being synonomous with the debate in the Stockholm Economic Society, what I have to say is largely based on a study of the Society's transactions. The printed proceedings cover all years except the first; those of the first year, that of the Society's foundation, have never been printed and, if ever recorded, that record must now be lost. Even without that year, however, the row of printed volumes makes an impressive and informative series.     

The quest for publicness: political conflict about the organisation of tramways and telecommunication in Sweden,c. 1900–1920

This article explores political conflicts about the organisation of public services in Sweden c. 1900–1920. The authors argue that political decisions play a vital role in shaping the political economy of public services. The case studies analysed are the political debates about the communalisation of the tramway system in Stockholm, and the nationalisation of Sweden’s last private telephone company. In both cases, the transfer of the service to public organisation was a lengthy process, ending in the late 1910s. This is explained using the concept of publicness. Drawing on three discursive chains, the argument is that the political development was affected by the politicians conception of the political community, the form of organisation and by perceptions of values such as equal access and modernity. In the case of the tramways, public organisation was seen as the best option to defend the public against corruption and self-interest. In the case of the telephones, free market competition was seen as a guarantee for an efficient and cost-effective service. The reason for this difference, is argued, was that the debate on the tramways articulated a clearer notion of publicness, where equal access and public opinion carried larger weight.     

Information,trust and the diffusion of smallpox vaccination: The Case of Scania in Sweden, 1802–1835

Abstract

This study deals with the diffusion of a new medical technology — vaccination against smallpox — in nineteenth-century Scania in Sweden. Using an aggregated sample of parishes as well as a micro-level dataset for four parishes, we investigate the socioeconomic as well as the geographical patterns of diffusion of vaccination in the province. We also relate the adoption of vaccination across geographical areas, as well as across social groups, to the availability of information, ability to acquire and process this information, and to levels of social capital and trust in society. Our results point to the conclusion that while vaccination spread very quickly geographically after its introduction, there were considerable differences between social groups. The better situated, betted educated, landholding peasants were more ready to adopt the new technology of smallpox vaccination. This had little to do with better access to economic resources as vaccination in general was provided free of charge. Instead we hypothesize that it was related to a higher ability to acquire and utilize the information available, and/or a higher level of trust in the authorities among these peasants.     

Economic transition and the determinants of self-employment in urban China: 2007–2013

Abstract

Why was there a large growth in self-employment in urban China during the economic transition period? There are two hypotheses proposed to answer this: the disguised unemployment hypothesis that there is no opportunity to access the formal sector to gain better work, and the business creation hypothesis that successful business owners create new jobs for others, new business opportunities, and many innovative new products for society, as pointed out in previous studies. Using CHIP2007 and CHIP2013, this paper tests the two hypotheses. The main conclusions are as follows: First, generally, utilizing the imputed wage premiums, which were used in previous studies, the business creation hypothesis is rejected; the disguised unemployment hypothesis is supported for both the local urban resident and the migrant groups in 2007 and 2013. Second, the results that utilized the new wage premiums based on the imputed employee wages in the private sector show that the business creation hypothesis is supported when a worker chose to become an employer for both the migrant group and the local urban resident group in 2013. Third, the business creation hypothesis is relevant for the older generation group of local urban residents in 2013.     

Technological change and the decline of the traditional pulp and paper industry in Norway, 1950–1980

Abstract

With its breakthrough around 1870, the Norwegian pulp and paper industry came to be a principal driving force in the industrialization of the country, retaining a leading position in the national economy until the mid-1950s. From that time onwards, however, the industry has experienced a relative as well as an absolute decline. Of great importance in this decline has been the fact that new technology made possible the use of all kinds of wood, which, internationally, led to a major relocation and restructuring of the industry. Technological change is, however, not sufficient to explain the decline of the Norwegian industry. National social characteristics as well as certain structural features of the industry also deserve attention.     

The banks and the financing of industry in Sweden,c. 1900–1927

Abstract

In the recently published third volume of Fagerstabrukens Historic, Professor E. F. Söderlund has given a detailed and penetrating account of the formation in 1927 of the Fagersta concern, resulting from the amalgamation of five leading Swedish iron works. ¹ Cf. Professor B. Boëthius' article above. pp. 174. His analysis offers a most useful background for a discussion of certain general problems of industrial finance and ownership, and of banking, in Sweden during the First World War and the 1920s. To provide such a discussion is the purpose of this article, and to that end it will be necessary to summarise Professor Söderlund's narrative. As, however, the story is in all essential respects the same for each of the works, a brief resume of the main facts in the history of one of them, Fagersta Bruk, will suffice.     

Between Malthus and the industrial take-off: regional inequality in Sweden, 1571–1850

The causes and extent of regional inequality in the process of economic growth are at the core of historical economic research. So far, much attention has been devoted to studying the role of industrialization in driving regional divergence. However, empirical studies on relatively unequal countries such as Italy and Spain show that inequality was already high at the outset of modern industrialization. Using new estimates of Swedish regional GDP, this article looks for the first time at regional inequality in a pre-industrial European economy. Its findings show that inequality increased dramatically between 1571 and 1750 and stayed high until the mid-nineteenth century. This result refutes the classical view that the industrial take-off was the main driver of regional divergence. Decomposing the Theil index for GDP per worker, we find that the bulk of inequality from 1750 onwards was driven by structural differences across sectors rather than different regional productivity within sectors. We show that counties with higher agricultural productivity followed a classic Malthusian pattern when experiencing technological advancement, while those with higher industrial productivity did not. We suggest that institutional factors, such as the creation of the Swedish Empire, Stockholm's trading rights, and a protective industrial policy, amplified this exceptional pattern.     

The role of the engineer in Danish modernisation, 1850–1920

Abstract

The article attempts to assess the role of engineers in the modernisation of Denmark in the period 1850 to 1920. Using both quantitative and qualitative evidence, it argues that though it is hardly possible in absolute terms to measure the influence of the engineers, it is possible to reach some indicative conclusions.

By looking at the position before 1850 and the periods 1850–1890 and 1890–1920 and using statistics on the employment of the engineers graduating from Polyteknisk Lareanstalt in Copenhagen, it is clear that these professional engineers affected society in a number of ways. The influence of engineers on the growing Danish industry has hitherto been presumed to be only minor. but this view needs some correction. As early as the 1870s and 1880s professional engineers played an important part in the largest Danish industrial firms, and prior to that held important positions in the new, technologically-pioneering, Danish industries. Danish engineers also influenced the State s telegraph service, the railways, gas- and water works, and town planning.

That, too, a considerable number of the early graduates from Polyteknisk: Lcereanstalt worked as teachers had no small importance, as, until some time after the mid nineteenth century, the teaching of the natural sciences in Denmark was sporadic and of uneven quality.     

Capital Flows and Economic Growth in the Era of Financial Integration and Crisis, 1990–2010

We investigate the relationship between economic growth and lagged international capital flows, disaggregated into FDI, portfolio investment, equity investment, and short-term debt. We follow about 100 countries during 1990–2010 when emerging markets became more integrated into the international financial system. We look at the relationship both before and after the global crisis. Our study reveals a complex and mixed picture. The relationship between growth and lagged capital flows depends on the type of flows, economic structure, and global growth patterns. We find a large and robust relationship between FDI – both inflows and outflows – and growth. The relationship between growth and equity flows is smaller and less stable. Finally, the relationship between growth and short-term debt is nil before the crisis, and negative during the crisis.     

Stadiums and Scheduling: Measuring Deadweight Losses in the Victorian Football League, 1920–70

Over a 50 year period, Australian Rules football's major league, the Victorian Football League, did not always use its largest and best-equipped stadium for regular season games between its most popular teams or schedule those teams to play twice in a regular season. We calculate deadweight losses from the use of capital goods (stadiums) and effects of match scheduling in this professional sports league. Such analysis has not been attempted previously because of the absence of a counterfactual. The welfare losses were significant but not sufficient to threaten the survival of a distance-protected cartel.     

Railways and the Exploitation of Victoria's Forests, 1880s–1920s

Railways made a large contribution to the expansion of Victoria's economy, and in the process enabled and drove environmental change. This article focuses on one industry, forestry. It first examines railway demand for timber in construction and maintenance, particularly for sleepers. This demand caused tensions – a bitter dispute in the 1890s between the Railways Department and the Conservator of Forests, George Perrin, over timber cut on state land led to uneasy co-existence after the turn of the century. Railways not only required timber but also carried commercial quantities in bulk, providing forest industries with access to profitable markets – in particular firewood, the significance of which has been underappreciated previously. Forest products contributed substantially to railway revenue, representing a more stable source of income than other major categories of freight such as wheat, wool, and coal.     

Innovation and industrial renewal in Sweden, 1970–2007

This study explores the question of whether the Swedish innovation output of the 1970s and 1980s (and the following decades) indicates structural lock-in or renewal. It is motivated by inconsistent explanations in the current literature about the relation between the economic slowdown and subsequent industrial renewal, as well as a lack of research focusing, in this context, on the primary driver of economic growth and structural change: innovation. By observing the number and type of innovations as they hit the market, the data in this paper tell a real time story about micro level innovation activity during the time that the economic crisis unfolds. The analysis considers Swedish innovation output between 1970 and 2007, characterising the number of significant innovations, their novelty, and their origin (including size of firm and industry sector). Three central findings emerge, defined by both the time period and the character of innovations. First, the magnitude of innovation activity peaks in the late 1970s to early 1980s. Second, starting in the late 1970s, small firms begin to outperform large firms in terms of both innovation quantity and quality (i.e. world market novelties). Third, the 1980s saw a distinct shift in the industrial origin of innovations, with software and telecom becoming the leaders in innovation output. The findings suggest that the observed industrial renewal is more nuanced than what has emerged from previous research.     

Migration,marriage and social mobility: Women in Sweden 1880–1900

We study the intergenerational social mobility of women by looking at how migration was associated with socioeconomic marriage mobility using complete-count census data for Sweden. The censuses 1880–1900 have been linked at the individual level, enabling us to follow almost 100,000 women from their parental home to their new marital household. Marriage market imbalances were not an important push factor for migration but we find a strong association between migration distance and marriage outcomes, both in terms of overall marriage probabilities and in terms of partner selection by SES. These results highlight the importance of migration for women's intergenerational social mobility during industrialization.