New business start-up and subsequent entry into self-employment

The present research focuses upon new businesses which are started from scratch. The theories of reasoned action and planned behavior are used to formulate hypotheses concerning self-employment intentions and subsequent entry into self-employment. The hypotheses are tested using longitudinal data from 297 Norwegian business founders. The results suggest that salient beliefs concerning self-employment determine attitudes toward self-employment, that attitude and subjective norm determine intentions to become self-employed, and that intentions to become self-employed determine actual entry into self-employment. The findings strongly support the theory of reasoned action, but provide no support for the extension of the theory represented by the theory of planned behavior.     

Intergenerational Earnings Mobility in Norway: Levels and Trends*

Using longitudinal data for Norwegian children born in 1950, 1955, 1960 and 1965, we find a relatively high degree of earnings mobility. There is no tendency toward decreasing mobility over the cohorts. Conditioning on the position in the earnings distribution, the analysis indicates quite high mobility in the middle of the distribution and somewhat more persistence at the top and bottom. This approach also reveals increased mobility over time for sons, but a less clear picture for daughters.     

Derived Demand and Relationships between Prices at Different Levels in the Value Chain: A Note

In this paper we note that when there is only one variable factor in the intermediaries' production technology, prices at different levels in the value chain will move proportionally to each other over time. This is also the only general condition under which the elasticity of price transmission is equal to one, so that retail price signals are perfectly transmitted to primary product producers and vice versa. This allows a test of whether derived demand elasticities contain information about consumer elasticities using only prices. An empirical illustration is provided using data from the Norwegian cod sector.     

Do good workers hurt bad workers—or is it the other way around?*

I study the effect of worker heterogeneities on wages and unemployment in a directed search model. A worker's productivity in a given firm depends both on his type and on a worker–firm specific component. Firms advertise unconditional wage offers only. The resulting equilibrium is inefficient, with a too high wage premium for high‐type workers, and too few high‐type jobs. This reduces the welfare of high‐type workers. My findings contrast with the findings in the literature on labor market segmentation, where it is argued that the existence of high‐type workers forces down wages and reduces welfare for low‐type workers.     

Endogenous money,inflation, and welfare

This paper addresses the classic question: what are the welfare costs of inflation. We employ a model in which the ratios of currency to deposits and currency to reserves are endogenously determined. The model distinguishes quantitatively between three sources of welfare cost of inflation, and provides further estimates for potential welfare gains from improvements in transaction technologies. Estimates of the marginal cost of public funds associated with the inflation tax are compared both with that of labor taxation within the model and with those reported in the public finance and macro literature. We conclude that not only is inflation an inefficient source of government revenue, but also that, in the absence of lump-sum taxation, deflationary policies may be highly inefficient.     

The non-globalisation of modern food retailing: the case of the failed Coop Norden merger

ABSTRACT

By discussing the creation and subsequent failure of Coop Norden, set up by the Scandinavian consumer co-operatives in 2002 as a common wholesale and food retail enterprise, this article provides insights into the nature of the Scandinavian food retail sector and co-operative enterprises in an era of globalisation. The article combines recent research on the globalisation of retailing with the academic literature on the economic position and development of consumer co-operative enterprises. The article concludes that the failure of Coop Norden can be seen as the natural consequence of two inherent problems: 1. A flawed vision among co-operative managers on how globalisation would impact retailing and 2. A misalignment between Danish, Norwegian and Swedish co-operative agendas. The article is based on comprehensive studies of the internal co-operative archives in Denmark and Norway.     

Bidding strategies and takeover premiums: A review

I review recent empirical research documenting offer premiums and bidding strategies in corporate takeovers. The discussion ranges from optimal auction bidding to the choice of deal payment form and premium effects of poison pills. The evidence describes the takeover process at a detailed level, from initial premiums to bid jumps, entry of rival bidders, and toehold strategies. Cross-sectional tests illuminate whether bidders properly adjust for winner's curse, whether target stock price runups force offer price markups, and whether auctions of bankrupt firms result in fire-sale discounts. The evidence is suggestive of rational strategic bidding behavior in specific contexts.