Research

This paper explores how social norms affect fertility decisions across generations. The observed positive intergenerational correlation in fertility suggests that people's fertility choices may be influenced by their childhood experiences and family or societal norms. Using outcomes of extended family members as a proxy of familial norms, I estimate the long-run persistence in fertility in Sweden and discuss reasons for heterogeneity among sub-samples. By incorporating a conceptual framework of cultural adaptation, I also use differential timing of moves among native-born Swedish to provide insights into how exposure to different region-specific norms may influence perspectives on family, ultimately affecting fertility choices. In light of the continuously shrinking fertility rate in major developed economies including Sweden, the findings of this paper provide a new perspective on individual fertility decisions and highlight the importance of recognizing cultural diversity among people of different backgrounds when developing population policies.

We provide a theoretical micro foundation for how much pollution (negative externalities) a firm will internalize based on its shareholders’ interests. Small shareholders, compared to large ones, want the firm to take higher costs to avoid pollution since they suffer less profit loss. If the share equals 1/N , where N is the population in society, the shareholder’s preferred pollution level equals the social-planner solution. Consequently, small shareholders will systematically vote for a greener corporate profile; firms with more small shareholders are predicted to pollute less; and countries with concentrated corporate wealth holdings will pollute more. Testing these predictions empirically yields either null results or results counter to the predictions thus not supporting the trivial logic.