Helsinki GSE Discussion Papers

The Helsinki GSE Discussion Paper series is available on EconStor. EconStor is an open access server that provides a platform for the free distribution of academic literature in economics.

Helsinki GSE Discussion Papers

  • Planning for Family Succession

    Ciprian Domnisoru and Robert A. Miller

    Sons succeed their exiting CEO parents more often than daughters. How do entrepreneurial families reach this gender imbalance, and how does it affect the prospects of their firms and their offspring? …

    Discussion paper

  • Gradual Learning from Incremental Actions

    Tuomas Laiho, Pauli Murto, and Julia Salmi

    We introduce a collective experimentation problem where a continuum of agents choose the timing of irreversible actions under uncertainty and where public feedback from the actions arrives gradually …

    Discussion paper

  • Affiliated Common Value Auctions with Costly Entry

    Pauli Murto and Juuso Välimäki

    Many auctions and procurement contests entail nontrivial bidding costs, which makes the bidders’ participation decisions endogenous to the auction design. We analyze the effect of different auction …

    Discussion paper

  • Teacher Selection in Finland

    Ramin Izadi

    Finland’s success in international student comparisons is often attributed to the quality of its teachers. In this paper I examine the teacher selection process in Finland and highlight three key new …

    Discussion paper

  • Who Benefits from Faster Public Transit?

    Prottoy Akbar

    Lower income commuters are more likely to ride and reside near public transit within cities, but do they also benefit more from faster transit travel? Combining survey data on travel behavior with …

    Discussion paper

  • Sovereign Risk under Diagnostic Expectations

    Stefan Niemann and Timm M. Prein

    This paper studies the effects of overreaction to recent news for macroeconomic outcomes in the context of a quantitative model of sovereign debt and default. Overreaction is formalized in terms of …

    Discussion paper

  • Jurisdictional Fragmentation and Sprawl

    Oskari Harjunen, Eetu Kauria, Tuukka Saarimaa, Janne Tukiainen: Jurisdictional Fragmentation and Sprawl

    This paper explores the connection between jurisdictional fragmentation and sprawl. We utilize Finnish municipal mergers as a quasi-experiment which induces exogenous variation in the number of local …

    Discussion paper

  • Furlough unemployment

    Heikki Korpela

    I examine the long-established scheme of furloughs in Finland, using detailed data on unemployment spells from 1999 to 2021. Furloughs allow employers in financial difficulty to suspend wages and …

    Discussion paper

  • Name-Based Estimators of Intergenerational Mobility

    Torsten Santavirta and Jan Stuhler

    Recent studies use names—first and surnames—to estimate intergenerational mobility in sources that lack direct family links. While generating novel evidence on intergenerational transmission …

    Discussion paper

  • Welfare Effects of R&D Support Policies

    Tuomas Takalo, Tanja Tanayama, and Otto Toivanen

    We conduct a welfare analysis of R&D subsidies and tax credits using a model of innovation policy incorporating externalities, limited R&D participation and financial market imperfections. We …

    Discussion paper

  • Commitment and Conflict in Multilateral Bargaining

    Topi Miettinen and Christoph Vanberg

    We theoretically investigate the effects of strategic pre-commitment in multilateral dynamic bargaining. Each round features a commitment stage in which players can declare that they will reject any …

    Discussion paper

  • Effect of Secondary Education on Cognitive and Non-cognitive Skills

    Jani-Petteri Ollikainen, Tuomas Pekkarinen, Roope Uusitalo, and Hanna Virtanen

    We exploit admission cutoffs to secondary schools to study the effects of general academically oriented, versus vocational secondary schooling on cognitive and non-cognitive skills using a regression …

    Discussion paper

  • Heterogeneous price commitments

    Saara Hämäläinen

    We provide a theory of dynamic oligopoly pricing with heterogeneous price technologies, captured by the presence of trackers (on the firm-side) and shoppers (on the consumer-side) who can costlessly …

    Discussion paper

  • Socially responsible lobbying

    Saara Hämäläinen and Sara Yi Zheng

    Lobbyists are nowadays increasingly involved in promoting businesses through societal investment, producing what has been paraphrased as “corporate beauty contests” due to the uncertain winning …

    Discussion paper

  • Parental Education and Invention: The Finnish Enigma

    Philippe Aghion, Ufuk Akcigit, Ari Hyytinen, and Otto Toivanen

    Why is invention strongly positively correlated with parental income not only in the US but also in Finland which displays low income inequality and high social mobility? Using data on 1.45M Finnish …

    Discussion paper

  • On Robustness of Average Inflation Targeting

    Seppo Honkapohja, Nigel McClung

    This paper considers average inflation targeting (AIT) policy in a New Keynesian model with adaptive learning agents. Our analysis raises concerns regarding robustness of AIT when agents have …

    Discussion paper