Faculty Profile

Tom-Reiel Heggedal

Associate Professor - Department of Economics

Biography

Research areas
Applied Theory, Environmental Econ., Experimental Econ., Labor Econ, and Political Econ.

Teaching areas
Economic Growth, Environmental Economics, Microeconomics, and Strategy (Game Theory).

For further information, please see my academic homepage.

Publications

Geys, Benny; Heggedal, Tom-Reiel & Sørensen, Rune Jørgen (2019)

Popular support for environmental protection: A life-cycle perspective

British Journal of Political Science

Support for environmental protection is generally perceived as driven by cohort or generational effects. We argue and empirically illustrate that such attitudes also fluctuate over the life cycle. Using rotating panels of the Norwegian Election Studies (1989-2013), our analysis is able to identify such life-cycle effects while controlling for cohort and period effects through a methodological innovation exploiting the first-derivative properties of the environmental concern function. Our main findings provide strong evidence of an inverted U-shape over the life cycle, which implies that substantial population aging in advanced economies may partially offset any generational shift towards a greater emphasis on protecting the environment.

Andersen, Jørgen Juel & Heggedal, Tom-Reiel (2019)

Political Rents and Voter Information in Search Equilibrium

Games and Economic Behavior, 114, s. 146- 168. Doi: 10.1016/j.geb.2019.01.006

Political parties commited to grab rents may run for election, and even win, if citizens are uninformed. But, how is the political equilibrium affected if citizens can mitigate this information problem through costly information search? We propose a political equilibrium theory with endogenous information search and turnout. We show that: (i) the political equilibrium generates political uncertainty characterized by a distribution of rent policies; (ii) the expectation of this rent distribution is inversely U-shaped in the information search cost; (iii) turnout is lower and rents are higher the more proportional is the electoral system.

Bjertnæs, GH; Heggedal, Tom-Reiel & Jacobsen, Karl (2018)

Knowledge Spillovers and the Timing of Environmental R&D Subsidies

Sasson, Amir (red.). At the Forefront, Looking Ahead: Research-Based Answers to Contemporary Uncertainties of Management

Heggedal, Tom-Reiel; Helland, Leif & Joslin, Knut-Eric Neset (2018)

Should I stay or should I go? Bandwagons in the lab

Journal of Economic Behavior and Organization, 150(June), s. 86- 97. Doi: 10.1016/j.jebo.2018.03.019

We experimentally investigate the impact of strategic uncertainty and complementarity on leader and follower behavior using the model of Farrell and Saloner (1985). At the core of the model are endogenous timing, irreversible actions and private valuations. We find that strategic complementarity strongly determines follower behavior. Once a subject decides to abandon the status quo the probability that other players jump on the bandwagon increases sharply. However, there is a reluctance to lead when leading is a conditional best response. We explain this deviation from the neo-classical equilibrium by injecting some noise in the equilibrium concept. We also find that cheap talk improves efficiency.

Greaker, Mads; Heggedal, Tom-Reiel & Rosendahl, Knut Einar (2018)

Environmental Policy and the Direction of Technical Change

The Scandinavian Journal of Economics, 120(4), s. 1100- 1138. Doi: 10.1111/sjoe.12254 - Full text in research archive

Should governments direct R&D from "dirty" into "clean" technologies? How im-portant is this compared to carbon pricing? We inquire into this, introducing twonovelties compared to recent literature. We introduce decreasing returns to R&D, andallow future carbon taxes to in‡uence current R&D decisions. Our results suggest thatgovernments should prioritize clean R&D. Dealing with major environmental problemsrequires R&D to shift to clean technology. However, with most researchers workingwith clean technology, both productivity spillovers and future risks of being replacedincrease. Consequently, the wedge between private and social value of an innovation islargest for clean technologies.

Geys, Benny; Heggedal, Tom-Reiel & Sørensen, Rune Jørgen (2017)

Are Bureaucrats Paid like CEOs? Performance Compensation and Turnover of Top Civil Servants

Journal of Public Economics, 152, s. 47- 54. Doi: 10.1016/j.jpubeco.2017.05.006

Recent research explores the effect of financial and career incentives on public-sector hiring processes and subsequent performance. The reverse relation between performance and bureaucrats’ compensation and turnover has received only limited attention. Due to the distinct features of public-sector organizations, bureaucrats are traditionally argued to require either permanent positions and fixed wages, or low-powered performance incentives. This article studies how the performance of top civil servants in Norwegian local governments affects their compensation and turnover. We thereby build on a unique new dataset over the period 1991-2014. Our results indicate that better performing top civil servants obtain a higher compensation and are less likely to be replaced. Nonetheless, these incentives remain low-powered in line with agency theory prescriptions.

Heggedal, Tom-Reiel; Moen, Espen Rasmus & Preugschat, Edgar (2017)

Productivity spillovers through labor mobility in search equilibrium

Journal of Economic Theory, 169, s. 551- 602. Doi: 10.1016/j.jet.2017.03.003

This paper proposes an explicit model of spillovers through labor flows in a framework with search frictions. Firms can choose to innovate or to imitate by hiring a worker from a firm that has already innovated. We show that if innovating firms can commit to long-term wage contracts with their workers, productivity spillovers are fully internalized. If firms cannot commit to long-term wage contracts, there is too little innovation and too much imitation in equilibrium. Our model is tractable and allows us to analyze welfare effects of various policies in the limited commitment case. We find that subsidizing innovation and taxing imitation improves welfare. Moreover, allowing innovating firms to charge different forms of fees or rent out workers to imitating firms may also improve welfare. By contrast, non-pecuniary measures that reduce the efficiency of the search process, always reduce welfare.

Heggedal, Tom-Reiel & Rosendahl, Knut Einar (2015)

Norsk klimapolitikk i et globalt perspektiv

Magma - Tidsskrift for økonomi og ledelse, 18(5), s. 65- 77. - Full text in research archive

Heggedal, Tom-Reiel (2015)

Knowledge Spillovers and R&D Subsidies to New, Emerging Technologies

Economics of Innovation and New Technology, 24, s. 710- 733. Doi: 10.1080/10438599.2014.983691

Heggedal, Tom-Reiel & Helland, Leif (2014)

Platform selection in the lab

Journal of Economic Behavior and Organization, 99, s. 168- 177. Doi: 10.1016/j.jebo.2013.12.004

Heggedal, Tom-Reiel & Jacobsen, Karl (2011)

Timing of innovation policies when carbon emissions are restricted: An applied general equilibrium analysis

Resource and Energy Economics, 33(4), s. 913- 937. Doi: 10.1016/j.reseneeco.2010.12.002

Greaker, Mads & Heggedal, Tom-Reiel (2010)

Lock-In and the Transition to Hydrogen Cars: Should Governments Intervene?

The B.E. Journals in Economic Analysis & Policy, 10(1)

Heggedal, Tom-Reiel; Bye, Brita & Fæhn, Taran (2009)

Welfare and growth impacts of innovation policies in a small, open economy: An applied general equilibrium analysis

Economic Modelling, 26, s. 1075- 1088.

Heggedal, Tom-Reiel & Kverndokk, Snorre (2007)

The Cost of Greenhouse Gas Mitigation in Europe - Kyoto and Beyond

International Association for Energy Economics Newsletter

Helland, Leif; Alice, Ciccone, Kjell Arne, Brekke & Heggedal, Tom-Reiel (2018)

Reference points in sequential bargaining: Theory and experiment

[Academic lecture]. Department seminar; division of social sciences, NYU AD.

Heggedal, Tom-Reiel; Moen, Espen Rasmus & Riis, Christian (2015)

Agglomerasjonsmodell

[Report]. BI CENTER FOR RESEARCH IN ECONOMICS AND MANAGEMENT.

Heggedal, Tom-Reiel; Espen R, Moen & Riis, Christian (2015)

Arbeidstilbudsmodell

[Report]. BI CENTER FOR RESEARCH IN ECONOMICS AND MANAGEMENT.

Andersen, Jørgen Juel & Heggedal, Tom-Reiel (2015)

Political Rents and Voter Information in Search Equilibrium

[Academic lecture]. Invited seminar at VATT, Helsinki.

Heggedal, Tom-Reiel; Moen, Espen R & Edgar, Preugschat (2014)

Productivity spillovers through labor mobility

[Report]. CEPR.

Heggedal, Tom-Reiel; Moen, Espen R & Riis, Christian (2014)

Samfunnsøkonomiske virkninger av fergefri E-39 Stavanger-Bergen

[Report]. CREAM.

Heggedal, Tom-Reiel; Greaker, Mads & Rosendahl, Knut Einar (2013)

The Environment and Redirection of Technical Change

[Academic lecture]. European Economic Association, Gothenburg, 2013.

Heggedal, Tom-Reiel; Rosendahl, Knut Einar & Greaker, Mads (2013)

The Environment and Redirection of Technical Change

[Academic lecture]. European Association for Environmental and Resource Economics, Toulouse, 2013.

Heggedal, Tom-Reiel & Andersen, Jørgen Juel (2013)

Political Rents and Search for Information

[Academic lecture]. International Institute of Public Finance, Sicily, 2013.

Andersen, Jørgen Juel & Heggedal, Tom-Reiel (2013)

Political Search

[Academic lecture]. ESOP/Oxcarre Meeting 2013.

Andersen, Jørgen Juel & Heggedal, Tom-Reiel (2013)

Political Search

[Academic lecture]. Journées Louis-André Gérard-Varet 2013.

Heggedal, Tom-Reiel (2012)

Productivity Spillovers Through Labor Mobility

[Academic lecture]. European Economic Association, 2012.

Heggedal, Tom-Reiel (2012)

Productivity Spillovers Through Labor Mobility

[Academic lecture]. Durham Business School.

Heggedal, Tom-Reiel (2012)

Productivity Spillovers Through Labor Mobility

[Academic lecture]. Society of Economc Dynamics.

Helland, Leif & Heggedal, Tom-Reiel (2012)

Coordination in two sided experimental markets

[Academic lecture]. Konferanse i regi av Economic Science Association (ESA).

Helland, Leif & Heggedal, Tom-Reiel (2012)

Ongoing quest for QWERTY

[Report]. Handelshøyskolen BI.

Heggedal, Tom-Reiel; Espen R, Moen & Edgar, Preugschat (2011)

Knowledge Spillovers in Competetive Search Equilibrium

[Academic lecture]. Forskningsseminar UiO.

Heggedal, Tom-Reiel & Espen R., Moen (2011)

Knowledge Spillovers in Competitive Search Equilibrium

[Academic lecture]. Oslo-Aarhus labor conference.

Heggedal, Tom-Reiel; Espen R, Moen & Edgar, Preugschat (2011)

Knowledge Spillovers in Competitive Search Equilibrium

[Academic lecture]. Search and Matching inaugural conference.

Bye, Brita; Heggedal, Tom-Reiel & Fæhn, Taran (2009)

Teknologiutvikling, klima og virkemiddelbruk

[Popular scientific article]. Rapporter - Statistics Norway

Bye, Brita; Fæhn, Taran & Heggedal, Tom-Reiel (2009)

Er teknologipolitikk et egnet virkemiddel i den norske klimapolitikken?

[Popular scientific article]. Samfunnsøkonomen

Bye, Brita; Heggedal, Tom-Reiel & Jacobsen, Karl (2009)

Er særskilt støtte til "månelandingen" på Mongstad effektiv politikk?

[Article in business/trade/industry journal]. Økonomiske analyser, s. 42- 48.

Regjeringens ”månelandingsprosjekt” innebærer at norske myndigheter gir særskilt støtte til forskning og utvikling av teknologier for karbonfangst og -lagring. I denne artikkelen drøfter vi om en slik selektiv virkemiddelbruk er effektiv forsknings- og utviklingspolitikk. Imperfeksjoner knyttet til markedene for forskning og utvikling av nye teknologier kan variere mellom forskjellige teknologiområder, og dermed gi grunnlag for ulik virkemiddelbruk. Både modenheten til et teknologiområde og forventning om fremtidig prisutvikling for en teknologi kan påvirke de ufullkommenhetene som er til stede i markedene. Imidlertid er det usikkert om disse effektene tilsier at forskning på teknologier for karbonfangst og -lagring bør støttes mer enn forskning på andre teknologier. Resultater fra simuleringsmodeller av norsk økonomi tyder på at det ikke bør drives selektiv støtte til forskning på teknologier for karbonfangst og -lagring på bekostning av annen teknologiutvikling

Bye, Brita; Fæhn, Taran, Heggedal, Tom-Reiel, Jacobsen, Karl & Strøm, Birger (2008)

An innovation and climate policy model with factor-biased technological change: A small, open economy approach.

[Report]. Statistisk sentralbyrå..

This report documents the model structure and empirical implementation procedures of a dynamic computable general equilibrium (CGE) model that includes induced technological change (ITC). The model is developed for analyses of economy-wide welfare and growth impacts of innovation and greenhouse gas abatement policy. It accounts for macroeconomic productivity and productivity growth effects in an realistic economic and political setting, where several simultaneous reallocations take place and interact with each other.

Academic Degrees
Year Academic Department Degree
2009 University of Oslo Ph.D.
2004 University of Oslo Master Cand. Polit.
Work Experience
Year Employer Job Title
2013 - Present BI Norwegian Business School Associate professor
2010 - 2013 Statistics Norway Research Fellow (Adjunct)
2009 - 2013 BI Norwegian Business School Assistant Professor
2004 - 2009 Statistics Norway Analyst
2007 - 2007 Resources for the Future Visiting Scholar
2006 - 2006 Center for Advanced Study Visiting Scholar
1993 - 1999 Norwegian Special Forces (Hærens Jegerkommando/Forsvarets Spesialkommando): Operative