We estimate long-run intergenerational persistence in human capital using information on outcomes for the extended family: dynasty. A dataset including entire Swedish population, linking four generations, allows us to identify parents’ siblings and cousins, their spouses, spouses’ siblings. Using various measures, we show that traditional parent-child estimates underestimate by at least one-thi...

Using the information content of surnames to measure social mobility, it is shown that the true intergenerational correlation of social status is in the order of 0.7-0.8, much higher than is estimated by conventional methods. This intergenerational correlation is similar across dramatically different societies: medieval England, modern England, pre-industrial Sweden, modern Sweden, the USA, Qui...

The introduction of the euro is expected to increase capital mobility in Euroland. While, as in the US, a common monetary policy is now performed, institutional structures are inherently more heterogenous. This paper argues that experience of the US with financial market integration can potentially serve as a benchmark for the integration effects. The paper finds that, despite the restrictions ...

Saving and investment are I(1) processes and generally do not cointegrate. This suggests the need for a nonstationary panel methodology to estimate the long run saving-investment association. We reconsider the Feldstein-Horioka puzzle using a mean group procedure which provides consistent estimates for nonstationary, heterogeneous panels. The resultant slope coe¢cient estimate for 12 OECD econo...

In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We allow for capital and firm mobility in a model where the government chooses the level of wage, source-based capital and profit taxation. The taxing choices of governments are analyzed in scenarios which differ with respect to the constraints imposed on the set of available taxes...