• The impact of dividend taxation on dividends and investment: New evidence based on a natural experiment 

      Kari, Seppo; Karikallio, Hanna; Pirttilä, Jukka
      VATT Working Papers : 9 (Valtion taloudellinen tutkimuskeskus VATT, 08.09.2009)
      There is a lack of clear evidence of the ways in which dividend taxation affects dividend distributions and investment and the evidence is based mainly on the behaviour of large listed companies. This paper utilises a large ...
    • The impact of school closures on student achievement - evidence from rural Finland 

      Izadi, Ramin
      VATT Working Papers : 63 (Valtion taloudellinen tutkimuskeskus VATT, 05.06.2015)
      Over the last two decades, many municipalities in Finland have attempted to cut costs by closing small schools. In particular, rural schools with low enrolment have been the target of these savings. This continuing tendency ...
    • The impact of tax incentives on the economic activity of entrepreneurs 

      Kosonen, Tuomas; Harju, Jarkko
      VATT Working Papers : 42 (Valtion taloudellinen tutkimuskeskus VATT, 10.01.2013)
      Based on existing evidence, we know little about how the taxation of small business owners affects their economic activity. This paper studies the effect of two Finnish tax reforms, in 1997 and 1998, on the effort decisions ...
    • Informational Efficiency of the EU ETS market – a study of price predictability and profitable trading 

      Aatola, Piia; Ollikka, Kimmo; Ollikainen, Markku
      VATT Working Papers : 28 (Valtion taloudellinen tutkimuskeskus VATT, 22.03.2012)
      We study the informational efficiency of the European Emissions Trading Scheme, EU ETS market by simulating the trading in this emerging market. If the market is efficient, profitable trading should only exist locally in ...
    • Innovation, Competition and Technical Efficiency 

      Berghäll, Elina
      VATT Working Papers : 77 (Valtion taloudellinen tutkimuskeskus VATT, 12.10.2016)
      Contradictory empirical and theoretical evidence on the relationship between innovation and competition has been reconciled in a model that yields an inverted U-shaped curve. I test whether the predictions of the model are ...
    • Institutional rules, labour demand and retirement through disability programme participation 

      Kyyrä, Tomi; Korkeamäki, Ossi
      VATT Working Papers : 16 (Valtion taloudellinen tutkimuskeskus VATT, 27.09.2010)
      We use matched employer-employee data from Finland to model transitions out of work into sick leave and disability retirement. To identify the role of institutional factors we exploit reforms that changed medical requirements ...
    • Investment Incentives and Tax Competition under the Allowance for Growth and Investment (AGI) 

      Kari, Seppo; Laitila, Jussi; Ropponen, Olli
      VATT Working Papers : 110 (Valtion taloudellinen tutkimuskeskus, 24.10.2018)
      We employ a dynamic investment model to study the investment incentives of the Allowance for Growth and Investment (AGI) proposed by the European Commission in its two-step approach towards the Common Consolidated Corporate ...
    • The labour market impacts of a youth guarantee: lessons for Europe? 

      Tuomala, Juha; Hämäläinen, Kari; Hämäläinen, Ulla
      VATT Working Papers : 60 (Valtion taloudellinen tutkimuskeskus VATT, 18.12.2014)
      This paper examines the youth guarantee programme introduced in Finland 2005. The reform consisted of early intervention, monitoring and individualized job search plans that guarantee activation measures for unemployed ...
    • Local Representation and Strategic Voting: Evidence from Electoral Boundary Reforms 

      Tukiainen, Janne; Saarimaa, Tuukka
      VATT Working Papers : 64 (Valtion taloudellinen tutkimuskeskus VATT, 11.09.2015)
      We analyze whether voters value local political representation by exploiting municipal mergers, which increase the number of candidates available to voters and intensify political competition. In the Finnish open-list ...
    • Long-term effects of extended unemployment benefits for older workers 

      Kyyrä, Tomi; Pesola, Hanna
      VATT Working Papers : 89 (Valtion taloudellinen tutkimuskeskus, 31.05.2017)
      This paper examines the long-term effects of extended unemployment benefits that older unemployed can collect until retirement in Finland. We consider a reform that increased the age threshold of this scheme from 55 to 57 ...
    • The Loss of Production Work: Identification of Demand Shifts Based on Local Soviet Trade Shocks 

      Einiö, Elias
      VATT Working Papers : 61 (Valtion taloudellinen tutkimuskeskus VATT, 25.03.2015)
      This paper examines changes in the structure of labor demand in panel data on Finnish manufacturing plants. I exploit general equilibrium effects on unit labor costs in local labor markets induced by the 1990 collapse of ...
    • Lost Boys: Access to Secondary Education and Crime 

      Huttunen, Kristiina; Pekkarinen, Tuomas; Uusitalo, Roope; Virtanen, Hanna
      VATT Working Papers : 114 (Valtion taloudellinen tutkimuskeskus, 31.12.2018)
      We study the effect of post-compulsory education on crime by exploiting a regression discontinuity design generated by admission cut-offs to upper secondary schools in Finland. We combine data on school applications with ...
    • "Love Thy Neighbour"? The Effect of Income and Language Differences on Votes for Municipal Secessions 

      Lapointe, Simon
      VATT Working Papers : 107 (Valtion taloudellinen tutkimuskeskus, 16.04.2018)
      This paper studies voters' preferences on municipal borders in a setting with cohabiting linguistic communities. It takes advantage of unique data from referendum results in the Canadian province of Quebec in 2004, which ...
    • Matching inefficiencies, regional disparities and unemployment 

      Hynninen, Sanna-Mari; Kangasharju, Aki; Pehkonen, Jaakko
      VATT Working Papers : 4 (Valtion taloudellinen tutkimuskeskus VATT, 28.05.2009)
      In this paper we apply a stochastic frontier approach to examine how matching efficiency and regional differences in structural factors contribute to regional and aggregate unemployment. Our results suggest that there would ...
    • Modelling state dependence and feedback effects between poverty, employment and parental home emancipation among European youth 

      Ayllón, Sara
      VATT Working Papers : 10 (Valtion taloudellinen tutkimuskeskus VATT, 30.10.2009)
      Youth is one of the phases in the life-cycle when some of the most decisive life transitions take place. Entering the labour market or leaving parental home are events with important consequences for the economic well-being ...
    • More haircut after VAT cut? On the efficiency of service sector consumption taxes 

      Kosonen, Tuomas
      VATT Working Papers : 49 (Valtion taloudellinen tutkimuskeskus VATT, 26.09.2013)
      Consumption tax rates targeted at specific sectors are often reformed without empirical knowledge about the efficiency of these policies. This paper sheds light on the efficiency issue, the potential for welfare improving ...
    • Multinational firms and job tasks 

      Nilsson Hakkala, Katariina; Heyman, Fredrik; Sjöholm, Fredrik
      VATT Working Papers : 8 (Valtion taloudellinen tutkimuskeskus VATT, 22.07.2009)
      We analyze the impact of multinational and foreign ownership on the demand for job tasks and educational skills. By using Swedish matched employer-employee data, we find that both foreign and domestic multinational firms ...
    • Multinationals, Competition and Productivity Spillovers through Worker Mobility 

      Nilsson Hakkala, Katariina; Sembenelli, Alessandro
      VATT Working Papers : 54 (Valtion taloudellinen tutkimuskeskus VATT, 13.01.2014)
      Spillovers can arise when multinational firms (MNEs) train local employees who later join domestic firms, bringing with them part of the technological, marketing and managerial knowledge they have acquired. Fosfuri et al. ...
    • Non-linear dividend tax and dynamics of the firm 

      Kari, Seppo; Laitila, Jussi
      VATT Working Papers : 41 (Valtion taloudellinen tutkimuskeskus VATT, 07.12.2012)
      This paper analyses the implications of a non-linear dividend tax in a life-cycle model of the firm. In the model new firms first enter markets, then grow, financing from retained earnings and finally distribute their ...
    • A Note on the Effects of Income-Splitting under Dual Income Tax 

      Kari, Seppo; Ropponen, Olli
      VATT Working Papers : 81 (Valtion taloudellinen tutkimuskeskus VATT, 14.10.2016)
      This paper reconsiders the income-splitting rules of the Nordic dual income tax system, introduced to address the incentives to shift income between labor and capital income tax bases. These rules impute a return on equity, ...