Data Dependent Endogeneity Correction in Cointegrated Panels*

This paper examines the small‐sample performance of several information based criteria that can be employed to facilitate data dependent endogeneity correction in estimation of cointegrated panel regressions. The Monte Carlo evidence suggests that the criteria generally perform well but that there are differences of practical importance. In particular, the evidence suggests that, although the estimators of the cointegration vectors generally perform well, the criterion with best small‐sample performance also leads to the best performing estimator.     

Does the measurement of intra-industry trade matter?

Does the Measurement of Intra-Industry Trade Matter? — This paper discusses different methods of capturing the main aspects of the Chamberlin-Heckscher-Ohlin-Samuelson model. Of particular interest are the distinction between horizontal and vertical intra-industry trade, the adjustment of aggregation biases, and the definition of inter- and intra-industry specialization at product level. The main findings are that it is important to disentangle horizontal and vertical intra-industry trade, and to consider specialization patterns within refined product groups. Moreover, there is a nonlinear relationship between intra-industry trade and economies of scale that may explain contradictory results in the literature.     

The Disciplinary Effect of the Single Market on Swedish Firms

In the 1980s it became increasingly clear that the European Community market was still segmented by national borders because of non-tariff barriers to trade. A major objective of the Single Market Program in 1992 was to remove these barriers, thereby enforcing intra-union competition. In this paper, a panel of Swedish firm-level data is used to evaluate whether domestic market power has been curtailed as a consequence of the SMP and of the Swedish membership in the European Union in 1995. Evidence of increased competition emerges, as price-cost margins have declined in industries with high non-tariff barriers prior to 1992. JEL Classification Numbers: F15, L11, C33     

Efficient but getting wet feet: A not-entirely-frivolous note on the side-effects of growth-promoting institutions

Using data covering 38 countries across the 1965-2005 period, this paper shows that former British colonies tend to exhibit higher levels of carbon dioxide emission than other countries.     

Why and how to compete through sustainability: a review and outline of trends influencing firm and network-level transformation

International Entrepreneurship and Management Journal - This article reviews and discusses how to compete with sustainability by reviewing the literature about sustainability, business models,...     

Political Stock Markets and Unreliable Polls

A political stock market (PSM) clearly beat the polls in predicting the outcome of a Swedish referendum on whether or not Sweden should join the European Union. In fact, polls were unable to make such predictions since the number of undecided respondents always far exceeded the observed YES/NO margin. However, an obstacle to PSMs serving as a superior forecasting instrument is that they can be sensitive to price distortions - by interest groups that may wish to effectuate, and pay for, such distortions - or forecast competitions tied to PSM trade gains, the latter of which was tested here.     

Do uninformed crossed and internalized trades tap into unexpressed liquidity? The case of Nokia

Crossed and internalized upstairs trades are analysed in a dataset in which institutional investors can be identified. Earlier findings that upstairs trading is uninformed, taps into unexpressed liquidity, and does not affect market quality are revisited. The permanent price effect of crossings and internalized upstairs trades is significantly lower than that of limit order book trades due to the fact that the least informed institutional trades are routed upstairs. Crossed and internalized trades affect the depth and transaction costs in the limit order book and a greater reliance is placed on the upstairs market when liquidity is low and volatility is high.     

Processes in collaborative entrepreneurship: a longitudinal case study of how multiple actors exploit a radically new opportunity

In this longitudinal case study, the authors integrate the theory on social movement with the entrepreneurship literature on opportunity discovery, evaluation, and exploitation. They construct a model on collaborative entrepreneurial processes in which multiple partners are involved in identifying, forming, and exploiting an opportunity. Three interdependent subprocesses are identified: (1) the opportunity conceptualization dialogue, (2) resource mobilization and, (3) legitimacy building, which significantly contribute to our understanding of how individuals across different organizations become engaged in collaborative entrepreneurial processes. The model of collaborative entrepreneurial processes complements traditional models of the entrepreneurial process, which place the individual entrepreneur at the center of the process and does not consider group mobilization processes in which the actors aim to be creative and innovative in collaborating with actors from other organizations or firms.     

Revenues in discrete multi-unit, common value auctions: a study of three sealed-bid mechanisms

This paper proposes a discrete bidding model for both quantities and pricing. It has a two-unit demand environment where subjects bid for contracts with an unknown redemption value, common to all bidders. Prior to bidding, the bidders receive private signals of information on the (common) value. The relevant task is to compare the equilibrium strategies and the seller’s revenue of the three most common auction formats with two players. The result is that the Vickrey auction always gives the most revenue to the seller, the discriminatory auction follows closely and the uniform auction clearly is the worst due to demand reduction.