• Political Representation and Effects of Municipal Mergers 

      Harjunen, Oskari; Saarimaa, Tuukka; Tukiainen, Janne
      VATT Working Papers : 98 (Valtion taloudellinen tutkimuskeskus, 18.10.2017)
      We study the effects of municipal mergers using novel geocoded data on public sector jobs, housing transactions and local politicians’ place of residence. We find that total municipal expenditures evolve in the same way ...
    • Primary Effect in Open-List Elections 

      Meriläinen, Jaakko; Tukiainen, Janne
      VATT Working Papers : 79 (Valtion taloudellinen tutkimuskeskus VATT, 07.09.2016)
      We study how political parties select political leaders. Using regression discontinuity design and data from Finnish local elections, we find that parties use vote ranks to decide upon promotions. Moreover, we show that ...
    • Public Employees as Politicians: Evidence from Close Elections 

      Hyytinen, Ari; Meriläinen, Jaakko; Saarimaa, Tuukka; Toivanen, Otto; Tukiainen, Janne
      VATT Working Papers : 78 (Valtion taloudellinen tutkimuskeskus VATT, 27.09.2016)
      We analyze the effect of municipal employees' political representation in municipal councils on local public spending. To quantify the effect, we use within-party, as-good-as random variation in close elections in the ...
    • Public Procurement versus Laissez-Faire: Evidence from Household Waste Collection 

      Meriläinen, Jaakko; Tukiainen, Janne
      VATT Working Papers : 113 (Valtion taloudellinen tutkimuskeskus, 20.12.2018)
      We document that switching from laissez-faire production to public procurement in residential waste collection in Finland reduces the number of firms active in the local market, but induces a statistically significant and ...
    • RD, investment and structural change in Finland: Is low investment a problem? 

      Berghäll, Elina
      VATT Working Papers : 6 (Valtion taloudellinen tutkimuskeskus VATT, 10.06.2009)
      Low aggregate investment in Finland has been argued to merely reflect structural change to an innovation economy, with high R&D levels adequately compensating for reduced physical investment. This paper briefly reviews the ...
    • Reconciling the evidence of Card and Krueger (1994) and Neumark and Wascher (2000) 

      Ropponen, Olli
      VATT Working Papers : 24 (Valtion taloudellinen tutkimuskeskus VATT, 29.04.2011)
      We employ the original Card and Krueger (1994) and Neumark and Wascher (2000) data together with the changes-in-changes (CIC) estimator to re-examine the evidence of the effect of minimum wages on employment. Our study ...
    • Regionalization and its effects in Finland – a regional AGE modelling analysis 

      Honkatukia, Juha; Kinnunen, Jouko; Ahokas, Jussi; Simola, Antti; Tamminen, Saara
      VATT Working Papers : 45 (VATT Institute for Economic ResearchValtion taloudellinen tutkimuskeskus VATT, 10.04.2013)
      Regional structural change is currently among the greatest challenges facing the public sector in many EU countries. In countries like Finland, where the public sectors have a large role in providing educational, health ...
    • Restaurant VAT cut: Cheaper meal and more service? 

      Kosonen, Tuomas; Harju, Jarkko
      VATT Working Papers : 52 (Valtion taloudellinen tutkimuskeskus VATT, 09.10.2013)
      This paper provides causally plausible estimates of the effects of consumption taxes in a service sector on prices and demand for restaurant services. We utilize a large VAT reform affecting restaurant meals, where the VAT ...
    • The role of information in tax compliance: Evidence from a natural field experiment 

      Kosonen, Tuomas; Ropponen, Olli
      VATT Working Papers : 48 (Valtion taloudellinen tutkimuskeskus VATT, 16.09.2013)
      It is challenging to distinguish the role of information in tax compliance from other factors affecting it. This paper utilizes a novel natural field experiment design to study the issue. In the experiment firms reporting ...
    • School tracking and development of cognitive skills 

      Pekkarinen, Tuomas; Uusitalo, Roope; Kerr, Sari
      VATT Working Papers : 2 (Valtion taloudellinen tutkimuskeskus VATT, 30.03.2009)
      The Finnish comprehensive school reform replaced the old two-track school system with a uniform nine-year comprehensive school and significantly reduced the degree of heterogeneity in the Finnish primary and secondary ...
    • Screening through Activation? Differential Effects of a Youth Activation Programme 

      Hall, Caroline; Kotakorpi, Kaisa; Liljeberg, Linus; Pirttilä, Jukka
      VATT Working Papers : 101 (Valtion taloudellinen tutkimuskeskus, 19.12.2017)
      We study the dual role of active labour market policies: First, ALMP may perform a screening role by increasing the incentives for job search especially among individuals with good labour market prospects, already prior ...
    • Seat competitiveness and redistricting: Evidence from voting on municipal mergers 

      Tukiainen, Janne; Saarimaa, Tuukka; Hyytinen, Ari
      VATT Working Papers : 38 (Valtion taloudellinen tutkimuskeskus VATT, 24.03.2013)
      We analyze how (anticipated) changes in the competitiveness of the seats of municipal councilors affect their voting behavior over municipal mergers. The competitiveness of the seats changes because the merger changes the ...
    • Self-Selection of Emigrants: Theory and Evidence on Stochastic Dominance in Observable and Unobservable Characteristics 

      Borjas, George J.; Kauppinen, Ilpo; Poutvaara, Panu
      VATT Working Papers : 67 (Valtion taloudellinen tutkimuskeskus VATT, 19.04.2016)
      We show that the Roy model has more precise predictions about the self-selection of migrants than previously realized. The same conditions that have been shown to result in positive or negative selection in terms of expected ...
    • Short-run and long-run food import elasticities with persistent trading habits 

      Niemi, Janne
      VATT Working Papers : 111 (Valtion taloudellinen tutkimuskeskus, 17.12.2018)
      This paper provides estimates and explores the role of own price import demand (Armington) elasticities between different source countries for five agricultural commodities in a framework that incorporates temporal dimension ...
    • Slipping through the Cracks of a Welfare State: Children of Immigrants in Finland 

      Sarvimäki, Matti; Ansala, Laura; Hämäläinen, Ulla
      VATT Working Papers : 72 (Valtion taloudellinen tutkimuskeskus VATT, 22.03.2016)
      We document large differences in educational attainment, criminal sentences and use of psychotropic medication between the children of immigrants and natives living in Finland. Among the offspring of immigrants from the ...
    • Subsidy Bidding Wars and the Structure of Multi-Plant Firms 

      Lapointe, Simon; Morand, Pierre-Henri
      VATT Working Papers : 115 (Valtion taloudellinen tutkimuskeskus, 22.01.2019)
      Governments spend large amounts of money to attract firms to their territory, often resulting from bidding wars against other regions. Previous papers show that such bidding wars can improve social welfare by allocating ...
    • Targeted Funding, Immigrant Background, and Educational Outcomes: Evidence from Helsinki's “Positive Discrimination” Policy 

      Silliman, Mikko
      VATT Working Papers : 91 (Valtion taloudellinen tutkimuskeskus, 18.08.2017)
      I estimate the impact of a targeted funding policy that provides disadvantaged schools in Helsinki with extra resources for hiring additional staff. Using a differences-in-differences strategy, I identify significant ...
    • Tax competition among local governments: evidence from a property tax reform in Finland 

      Lyytikäinen, Teemu
      VATT Working Papers : 26 (Valtion taloudellinen tutkimuskeskus VATT, 31.08.2011)
      This paper uses a Finnish policy intervention to study tax competition among local governments. Changes in the statutory lower limits to the property tax rates are used as a source of exogenous variation to estimate the ...
    • Taxable Income Elasticity and the Anatomy of Behavioral Response: Evidence from Finland 

      Matikka, Tuomas
      VATT Working Papers : 55 (Valtion taloudellinen tutkimuskeskus VATT, 11.02.2014)
      This paper uses extensive Finnish panel data from 1995–2007 to analyze the elasticity of taxable income (ETI). I use individual changes in flat municipal income tax rates as an instrument for the overall changes in marginal ...
    • Technological changes, wage inequality and skill premiums: Evidence over three centuries 

      Ojala, Jari; Pehkonen, Jaakko
      VATT Working Papers : 5 (Valtion taloudellinen tutkimuskeskus VATT, 10.06.2009)
      This study analyses the evolution of wages and occupational composition of labour over three centuries, from 1755 to 1914, using worker-workplace data. The data from one industry offers a unique view on long-term trends ...