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1 The Scandinavian Journal of Economics Vol No ± rd YEAR OF PUBLICATION Articles Jonathan Haskel and Holger Wolf, The Law of One PriceÐA Case Study Eva M. Meyersson Milgrom, Trond Petersen and Vemund Snartland, Equal Pay for Equal Work? Evidence from Sweden and a Comparison with Norway and the U.S. Erik Hernñs, Fewer in Number but Harder to Employ: Incidence and Duration of Unemployment in an Economic Upswing Sùren Bo Nielsen, A Simple Model of Commodity Taxation and Cross-border Shopping Claudio Thum and Marcel Thum, Repeated Interaction and the Public Provision of Private Goods Ian W. H. Parry and Antonio Bento, Revenue Recycling and the Welfare Effects of Road Pricing Alistair Ulph and Laura Valentini, Is Environmental Dumping Greater when Plants are Footloose? Michael P uè ger, Ecological Dumping under Monopolistic Competition Tore Leite, Optimal Financial Structure: An Incomplete Contracting Model Index of Contents
2 The Scandinavian Journal of Economics December 2001 Editors Steinar Holden, Christian Schultz, University of Copenhagen Editorial Secretary Julie Sundqvist Associate Editors Torben M. Andersen, University of Aarhus Geir B. Asheim, Harry Flam, Nils Gottfries, University of Uppsala Thorvaldur Gylfason, University of Iceland, Reykjavik Lennart Hjalmarsson, University of Gothenburg Michael Hoel, Bertil Holmlund, University of Uppsala Seppo Honkapohja, University of Helsinki Svend Hylleberg, University of Aarhus Henrik Jensen, University of Copenhagen Karl O. Moene, Mats Persson, Matti Pohjola, Helsinki School of Economics Agnar Sandmo, Norwegian School of Economics and Business Administration, Bergen Erling Steigum, Norwegian School of Management, Oslo Steinar Strùm, Fabrizio Zilibotti, Ansvarig utgivare Lennart Hjalmarsson The Scandinavian Journal of Economics is published four times a year, in March, June, September and December by Blackwell Publishers, 108 Cowley Road, Oxford OX4 1JF or 350 Main Street, Malden, MA 02148, USA. Information for subscribers: New orders and sample copy requests should be addressed to the Journals Marketing Manager at the publisher's address above (or by to jnlsamples@blackwellpublishers.co.uk. quoting the name of the journal). Renewals, claims and all other correspondence relating to subscriptions should be addressed to Blackwell Publishers Journals, PO Box 805, 108 Cowley Road, Oxford OX4 1FH, UK (tel: 44(0) , fax: 44(0) or jnlinfo@blackwell-publishers.co.uk). Cheques should be made payable to Blackwell Publishers Ltd. Internet: For access to Scandinavian Journal of Economics articles online, and for information on all Blackwell Publishers books, journals and services log onto URL: Subscription prices 2002 UK/Europe The Americas Rest of the World Institutions US$ Individuals US$ Canadian customers/residents please add 7% for GST. US Mailing. Periodicals postage paid at Rahway, NJ. Postmaster: send address corrections to The Scandinavian Journal of Economics, c/o Mercury Airfreight International Ltd Inc., 365 Blair Road, Avenel, NJ Back issues. Single issues from the current and previous two volumes are available from Blackwell Publishers Journals at the current single issue price. Earlier issues may be obtained from Swets & Zeitlinger, Back Sets, Heereweg 347, PO Box 801, 2160 SZ Lisse, The Netherlands. backsets@swets.nl Manuscripts and editorial correspondence. See inside back cover. Microform. The journal is available on micro lm (16 mm or 35 mm) or 105 mm micro che form the Serials Acquisitions Department, Bell & Howell Information and Learning, 300 North Zeeb Road, Ann Arbor, MI 48106, USA. The Scandinavian Journal of Economics is abstracted and indexed in Social Sciences Citation Index. Current Contents/Social Science and Behavioural Sciences, Automatic Subject Citation Alert, Journal of Economic Literature. Advertising. For details contact the Advertising Manager, Andy Patterson, Wheatsheaf House, Woolpit Heath, Bury St Edmunds, IP30 9RN. Tel Fax
3 The Scandinavian Journal of Economics Founded by David Davidson in 1899 ARTICLES The Law of One PriceÐA Case Study. By Jonathan Haskel and Holger Wolf Equal Pay for Equal Work? Evidence from Sweden and a Comparison with Norway and the U.S. By Eva M. Meyersson Milgrom, Trond Petersen and Vemund Snartland Fewer in Number but Harder to Employ: Incidence and Duration of Unemployment in an Economic Upswing. By Erik Hernñs A Simple Model of Commodity Taxation and Cross-border Shopping. By Sùren Bo Nielsen Repeated Interaction and the Public Provision of Private Goods. By Claudio Thum and Marcel Thum Revenue Recycling and the Welfare Effects of Road Pricing. By Ian W. H. Parry and Antonio Bento Is Environmental Dumping Greater when Plants are Footloose? By Alistair Ulph and Laura Valentini Ecological Dumping under Monopolistic Competition. By Michael P uè ger Optimal Financial Structure: An Incomplete Contracting Model. By Tore Leite Index of Contents 723
4 Instructions to Contributors The editorial policy of The Scandinavian Journal of Economics is to foster original economic research of high standard in the Nordic countries and make it known to an international readership. Manuscripts submitted to the Editor should be in English. Four copies are requested. Articles should be no longer than 15 printed pages (approximately 20 double-spaced typewritten pages, including references, gures and tables). An abstract not exceeding 100 words should also be enclosed. References to articles and books (including the rst names of all authors cited) should be listed at the end of the article; references in the text to this list should be made using the Harvard author-date system. Footnotes and formulas should be numbered consecutively throughout the text and acknowledgements denoted by an asterisk. Figures should be suitable for direct photographic reproduction and allowances should be made for necessary reduction. Tables should be clearly labeled. Supplemen-tary explanations of mathematical methods and statistical tests which, although not intended for publication, could facilitate the referees' work, should be enclosed. The authors of articles receive 25 offprints free of charge. An Offprint Order Form is provided for orders for additional copies. Manuscripts submitted to the editorial of ce should be accompanied by a submission fee of SEK 300, payable to The Scandinavian Journal of Economics. (i) Nordic submissions: Please remit in Swedish kronor only to Swedish postal giro account no ; (ii) Non-Nordic submissions: Please remit in Swedish currency by Eurogiro or SWIFT (PGSI SESS) to International Bank Account Number (IBAN) SE with PostGirot Bank (Stockholm), or by check, payable in SEK, drawn on a Swedish bank. Bank (but not personal) checks in the amount of USD 50 are also accepted. Manuscripts (4 copies), books for review and editorial correspondence should be addressed to: The Editor THE SCANDINAVIAN JOURNAL OF ECONOMICS Department of Economics SE Stockholm, Sweden Phone Fax scanjourneco@ne.su.se Copyright: All rights reserved. Apart from fair dealing for the purposes of research or private study, or criticism or review, as permitted under the UK Copyright, Design and Patents Act 1988, no part of this publication may be reproduced, stored or transmitted in any form or by any means without the prior permission in writing of the Publisher, or in accordance with the terms of photocopying licenses issued by organisations authorised by the Publisher to administer reprographic reproduction rights. Authorisation to photocopy items for educational classroom use is granted by the Publisher provided the appropriate fee is paid directly to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, USA (tel ), from whom clearance should be obtained in advance. For further information see CCC Online at ISSN Printed and bound in Great Britain by Page Bros, Norwich on acid-free paper. # The editors of the Scandinavian Journal of Economics 2001
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