Researchers at the Knut Wicksell Centre receive 8 million in research funding

Published: 2019-05-27

Four research groups at the centre has received a total of almost 8 million sek in funding from the Jan Wallanders and Tom Hedelius foundation. The principal investigators of the projects are Amanda Sonnerfeldt “Tax reporting for a sustainable society”, Hossein Asgharian “Doing well by doing good? Sustainability and performance” Kaveh Majlesi “Labor Market Shocks, Household Saving Behavior and Wealth Inequality” and Petter Lundborg “On Intergenerational Wealth Mobility and Fertility”.

In the project “Tax reporting for a sustainable society” which is a collaboration between KWC researchers in financial economics, accounting and business law will investigate the research team will investigate the critical issue off how taxes can contribute more efficiently to the UN’s sustainability goals. Both companies and civil society feel that tax legislation regarding international transactions has shortcomings. Aggressive tax planning leads to a loss of tax revenue of around 50-70 billion euros in the EU each year. Increased transparency can contribute to reduced information asymmetry and thus to increased efficiency and legitimacy in international taxation.

“Doing well by doing good? Sustainability and performance” in collaboration with Stockholm University the team will exame how real economic and financial sectors are affected by corporate sustainability initiatives. They will answer how sustainability initiatives affect not only the company taking the initiative but also how the company's customers, competitors and suppliers are affected.

"Labor Market Shocks, Household Saving Behavior and Wealth Inequality” Recent work indicates that how much households save and how they allocate their savings across and within different asset categories have consequential effects on wealth accumulation at the household level and, as a result, the dynamics of wealth inequality in the economy. However, the causes behind differential saving behaviors and what triggers changes in that are very much understudied. There are reasons to conjecture that labor market shocks are among the most important drivers of changes in households' saving decisions. In a set of projects, I test how some of the most predominant sources of labor market shocks affect the saving behavior of households and how this might contribute to the evolution of wealth inequality. By investigating and comparing the causal effects of different shocks, I will try to paint a potentially complete picture of how labor market shocks in today’s economy could affect household saving and consumption decisions.

On Intergenerational Wealth Mobility and Fertility”. Wealth is strongly correlated across generations but we have limited knowledge about what determines the strength of the correlation. Economists like Thomas Picketty have emphasized fertility as an important factor and have argued that children in larger families to a lesser extent can rely on their parents’ wealth for their own wealth accumulation. In this project, we aim to examine how fertility affects wealth transmission across generations by using data from Swedish registers, such as the wealth register. By focusing on changes in fertility resulting from twin births, we aim to isolate the causal impact of fertility on wealth transmission.