Framtidens arbetsmarknad och den svenska modellens utmaningar - Ratio

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Working Paper No. 383 Insider activism in the forest industry: An empirical public choice analysis

Jonas Grafström & Nils Karlson

Publication year

2025

Published in

Ratio Working Paper Series

Abstract

Insider activism—where bureaucrats use discretionary power to advance own ideological goals—has significant implications for regulatory stability and property rights security. Using the Swedish forestry industry as a case study, the purpose of this study is to investigate if insider activism affects the Swedish forestry sector and how such possible regulatory uncertainty influences economic decision-making. Assembled survey data suggest that forest owners perceive regulatory enforcement as unpredictable, leading to defensive actions such as premature harvesting to preempt restrictive future regulations. To explain these patterns, we apply public choice theory and a game-theoretic approach, demonstrating how bureaucratic drift, regulatory ratcheting, and time-inconsistency problems contribute to persistent distortions in forestry policies. Policy wise, the findings emphasize the need for judicial review, regulatory impact assessments, and clearer legislative mandates to reduce enforcement uncertainty and improve institutional trust. This research advances discussions on bureaucratic incentives, regulatory capture, and legal certainty in environmental policy.

Reviving Classical Liberalism Against Populism

Karlson, N. (2024). Reviving Classical Liberalism Against Populism. Palgrave Macmillan Cham.

Publication year

2024

Published in

Palgrave Macmillan Cham.

Abstract

How can we fight back against the populist threat to liberty, free markets, and the open society?

This open access book by Nils Karlson explores the strategies used by left- and right-wing populists to make populism intelligible, recognizable, and contestable. Karlson argues that to fight back requires the revival of liberalism itself by defending and developing the liberal institutions, the liberal spirit, liberal narratives, and liberal statecraft. The book presents a synthesized explanatory model for how populists promote autocratization through the deliberate polarization of society and traces the ideational roots of the core populist ideas that form a collectivistic identity politics. Written within the tradition of political theory and institutional economics, this book uses a wide variety of sources, including results and analyses from social psychology, ethics, law, and history.

The book is open source and can be downloaded through the link below.

Article (with peer review)

Managers on balancing employment protection and what’s good for the company: Intended and unintended consequences of a semi-coercive institution

Stern, C., & Weidenstedt, L.

Publication year

2022

Published in

Economic and Industrial Democracy.

Abstract

Sweden’s institutionalized employment protection legislation, ‘LAS’, is interesting theoretically because parts of it are semi-coercive. The semi-coerciveness makes it possible for firms and unions under collective agreements to negotiate departures from the law. Thus, the law is more flexible than the legal text suggests. The present study explores intended and unintended consequences of LAS as experienced by managers of smaller manufacturing companies. The results suggest that managers support the idea of employment protection in principle but face a difficult balancing act in dealing with LAS. From their point of view, the legislation’s institutional legitimacy is low, producing local cultures of hypocrisy and pretense. The article gives insights into how institutions aimed at specific, intended behavior sometimes end up producing unintended consequences fostering the opposite.

The article in total can be read here.