Housing prices and tenure choice with asymmetric taxes and progressivity

This paper studies the effects of tax schedule changes on prices and tenure choice in the housing market. It is shown that, given the present asymmetric treatment of owner-occupants vs. renters, an increase in the degree of progressivity is likely to lead to an increasein the prices of both owner-occupied and rental housing. A numerical example indicates that the effects may be quite large. Equilibrium prices are calculated based on the actual Swedish income tax schedules for 1971 and 1979. According to these simulations the tax changes that took place between these years caused the price of owner-occupied houses to increase by around 30 percent, and the rent level to increase by 2 or 3 percent.     

Entrepreneurship as Recombinant Growth

The paper presents a model of the entrepreneur as an undertaker of new combinations of ideas. Technology is seen as a set of ideas in a metric technology space where new knowledge is created by the combination of older ideas in the spirit of Schumpeter (1934), Weitzman (1998) and Olsson (2000). Given some intuitive assumptions, we demonstrate that technological progress generated by the convex combination of ideas is constrained by five factors: First, the combinatory process eventually leads to the exhaustion of technological opportunity. Second, the cost of combining ideas increases with the technological distance between the originating ideas. Third, profits are maximized when ideas are combined that are technologically close. Fourth, the technology set is constrained by a social possibility set of socially acceptable ideas. Fifth, the boundaries implied by the ruling technological paradigm limit the scope for eternal recombinant growth.     

Revisiting a Social Constructionist Approach to Crisis Communication– Investigating Contemporary Crises in China

ABSTRACT

The current study provides a social constructionist approach to crisis communication in the Chinese context. Crisis communication is viewed as a form of strategic communication, involving multiple stakeholders in situations that are dependent on context, space and time. This approach provides a much-needed path for investigating and understanding crisis communication practices in contemporary China. The distinct Chinese context for crisis communication, with both an authoritarian government structure and a digital transformation of society, challenges theories originally developed in the Western countries. To address this issue, this study proposes a three-theme analytical framework to examine crisis communication practices in the Chinese context: (1) an audience (or stakeholder) orientation—focusing sense-making, (2) a proactive and interactive approach—focusing communication, and (3) a community—focused approach—focusing a long-range precrisis perspective.     

Trust and Brand Recovery Campaigns in Crisis: Findus Nordic and the Horsemeat Scandal

The aim of this study is to describe and analyze a transboundary crisis, focusing on crisis communication from the perspective of an involved major corporation. More concretely, the intent is to increase understanding of how Findus Nordic in Sweden managed the crisis communication response and repair of its trust and corporate brand during and after the horsemeat scandal in 2013. The case study is based on a theoretical framework that consists of three theories or concepts: transboundary crisis, image repair strategy, and rhetorical arena. Findus Nordic followed its corporate values and applied a consistent image repair strategy: denial and blame shifting towards the supplier Comigel in an extremely multivocal arena. This strategy was supplemented with responsibility evasion. Towards the end of the public crisis, Findus Nordic used the crisis as an opportunity to recover their position and started a campaign that had a positive impact on trust and the corporate brand. The launch of the campaign was very fast and might have been dangerous. However, according to the analysis, the success of the campaign may be explained as a consequence of its sensemaking and auto-communicative approach.     

The Neoliberalization of Municipal Land Policy in Sweden

In Sweden, local governments’ practice of the ‘municipal land instrument’—that is, the use of public land ownership as a tool for facilitating urban development—has a long tradition. In the post‐war era, public land ownership constituted an important component of state‐led housing production, which had both a productive and a redistributive purpose. Departing from a political economy perspective, this article demonstrates how the redistributive aspect of the municipal land instrument has been dissolved under neoliberalization, and discusses why the use of this instrument is problematic from both a democratic and ethical point of view. Based on a case study in Helsingborg, the article argues that, in using public land to leverage private investment in urban development, local decision makers adopt an interest in supporting rent extraction from tenants and housing owners, while subsidizing investment costs for developers. The dual role that municipalities assume as landowner‐developers and planning authorities enable them to facilitate urban development effectively, but it is also problematic because it transgresses the public–private law divide inherent to Swedish law. Assuming this dual role, municipalities place themselves in a biased position that risks undermining the legitimacy of governmental actions in general, and the planning system in particular.     

To be an independent thinker: an intellectual portrait of Staffan Burenstam Linder *

Abstract

The essay provides a portrait of the life and works of Staffan Burenstam Linder (1931–2000), one of Sweden's most renowned economists, the originator of the so-called Linder Thesis and of The Harried Leisure Class. It provides a critical account of all his major works and at the same time follows his career as an economist and a politician. The essay ends with an overall evaluation of his intellectual contribution.     

Squeezing the Last Drop Out of Your Suppliers: An Empirical Study of Market‐Based Purchasing Policies for Generic Pharmaceuticals

We study the effect of the degree of exclusivity for the lowest bidder on the average price of generic pharmaceuticals in the short and long terms. Our results indicate that a 1‐percentage‐point gain in market share of the lowest bidder reduces average costs by 0.2% in the short term and 0.8% in the long term, but also reduces the number of firms by 1%. We find that reducing the number of firms has a strong positive (and hence counteracting) effect on average prices, a 1% reduction raising prices by approximately 1%.     

Joint Production of Food and Wildlife: Uniform Measures or Nature Oases?

Intensive agriculture is often bad for wildlife. Does this imply that a goal to boost wildlife on agricultural land is best met through a general reduction in intensity? We argue that such an approach may not be optimal, since cost functions for provision of wildlife on agricultural land may be non-convex, due to fixed costs associated with such provision. This implies that, even when farms are identical, it may be preferable to split them into groups of high providers and low providers. We test our hypothesis in a study of the optimal management of mown grasslands in southern Sweden, where the two products are silage and successful reproduction of ground-nesting birds, and the variable controlled by the farmer is the date of the first mowing. We show that the optimal solution is likely to involve some farmers maintaining profit-maximizing practices while other—identical—farmers delay their first mowing significantly. The superiority of such split solutions may have major implications for agricultural policy.     

Attributional tendencies in cultural explanations of M&A performance

This paper focuses on managers' attributions of M&A performance. Our analysis indicates that there is a linear association between performance and attributions to cultural differences, which is moderated by prior experience. Furthermore, our results suggest that there is a curvilinear association between performance and attributions to managers' actions, but we found no support for the moderating effect of experience for this association. By substantiating these attributional tendencies, our results contribute to research on M&As and studies on attribution more generally. In particular, our study helps to put cultural differences in perspective and cautions researchers and practitioners alike to avoid simplistic explanations of M&A performance. Copyright © 2013 John Wiley & Sons, Ltd.