This paper introduces a panel GMM framework for identifying and estimating demand elasticities via heteroscedasticity. While existing panel estimators address the simultaneity problem, the state-ofthe-art Feenstra/Soderbery (F/S) estimator suffers from inconsistency, inefficiency, and lacks a...

We analyse how fiscal policy affects both the macroeconomy and the industry structure, using a multi-sector macroeconomic model of the Norwegian economy with an inflation targeting monetary policy. Our simulations show that the government spending multiplier in the case of a permanent...

We reconcile two different strands of the literature: the literature on how new goods impact prices and the literature on productivity growth and firm turnover. To our knowledge, this is the first paper to provide a fully consistent decomposition of aggregate productivity growth that identifies...

This paper examines the substitution between pension wealth and household saving by studying Norway's 2011 pension reform. The analysis identifies the effect of reductions in social security pension generosity on household saving using cohort, time and sector variation in pension wealth induced...

Reducing the eligibility age for pension benefits is considered by many as a policy that will discourage labor supply by mature workers. This paper analyzes a recent Norwegian pension reform which effectively lowered the eligibility age of retirement from 67 to 62 for a group of workers. For the...

The weighted arithmetic mean is used in a wide variety of applications. An infinite number of possible decompositions of the weighted mean are available, and it is therefore an open question which of the possible decompositions should be applied. In this paper, we derive a decomposition of the...

We bridge mathematical number theory with that of optimal control and show that a generalised Fibonacci sequence enters the control function of finite horizon dynamic optimisation problems with one state and one control variable. In particular, we show that the recursive expression describing...

The standard cost-of-living index hinges on the assumption that there is free trade. Applying it to situations where trade barriers are present yields biased results with respect to a true cost-of-living index. Import price indices are particularly vulnerable to this bias since many of the goods...

The empirical literature studying the sector bias of technical change has only focused on skill-biased technical change. In this paper, I analyse the sector bias of both factor-neutral and factor-biased technical change. In Norwegian data from 1972 to 2007 the empirical evidence is not clear on...

The Norwegian productivity puzzle is rooted in three seemingly contradictory "facts": First, Norway is one of the most productive OECD countries. Second, Norway has experienced high growth in productivity. Third, Norway has a relatively low level of R&D intensity. In this article, I show that...