Mats LUndahl | Stockholm School of Economics (original) (raw)
Papers by Mats LUndahl
Palgrave Macmillan UK eBooks, Nov 18, 2016
The Economics of the Frontier, 2016
This chapter surveys a number of frontier episodes (historical examples which bring out the impor... more This chapter surveys a number of frontier episodes (historical examples which bring out the importance of our approach).
Iberoamericana: Nordic Journal of Latin American and Caribbean Studies, 1994
Palgrave Macmillan UK eBooks, 2002
An old truth, but still one of the cornerstones in the theory of international trade, is that fre... more An old truth, but still one of the cornerstones in the theory of international trade, is that free trade under laissez-faire constitutes the optimal trade policy, provided that prices are flexible, production factors domestically mobile, the country cannot influence its terms-of-trade and all markets operate under conditions of perfect competition. However, free trade under laissez-faire is not the best policy in situations where some kind of distortions exist in the commodity or factor markets. (We will provide examples in next chapter.) In such cases better results are obtained with the aid of policy interventions of different kinds. Before we examine how these interventions work, we will investigate the condition that must be met if we are to achieve the highest possible welfare level in the open economy.
Palgrave Studies in Economic History, 2019
This chapter contrasts Timor’s record with the agricultural dynamism evident in much of Southeast... more This chapter contrasts Timor’s record with the agricultural dynamism evident in much of Southeast Asia. The agricultural sector is low in production, and it is not competitive internationally. Imports have to be resorted to in order to ensure food security. Production rests on shifting cultivation, bush fallow rotation, and simple hand tools. The main crops—rice and maize—both display considerable fluctuations, and their absolute yields are among the lowest in the region. The production of coffee, the most important export crop, is decreasing. The quality of the land is low and possibly declining, capital inputs are sparsely used, and credit is difficult to obtain. Most of the time, unimproved seed is used, but introduction of high-yielding varieties has proved successful for several crops. The low educational level and the lack of an effective extension service make the introduction of innovations difficult.
The Creation of the East Timorese Economy, 2019
This chapter covers the United Nations rule of East Timor, 1999–2002. The mission was charged wit... more This chapter covers the United Nations rule of East Timor, 1999–2002. The mission was charged with building an entirely new state, from scratch. This was a period with emphasis on peacekeeping and reconstruction activities instead of on institutional development. The contact between the UN personnel and the local population was minimal. It may be argued that some of the decisions taken then negatively affected future outcomes, but the UN necessarily had to tread lightly, given fractured Timorese community and the concern that Indonesia might destabilize the situation. By and large, however, the mission failed to prepare a domestic administration that could take over in a seamless fashion when the international personnel left the country.
The Distorted Economy, 2002
In the preceding chapter we outlined a theory for how individuals (or firms) organize themselves ... more In the preceding chapter we outlined a theory for how individuals (or firms) organize themselves into interest groups when there are public goods for the group which may be produced as a result of putting pressure on the government and the legislators. We will now take one more step in our analysis and see what the economic consequences of this behaviour may be. The activities of the interest groups towards securing favours for the members are known as rent seeking or directly unproductive profit-seeking (DUP) activities.
The Distorted Economy, 2002
The best example of ethnically based systematic discrimination can be found in the recent history... more The best example of ethnically based systematic discrimination can be found in the recent history of South Africa. Discrimination had been applied, in various forms, in the country since the beginning of the European colonization in the mid-seventeenth century until the early 1990s, when the system was officially abolished.
The Distorted Economy, 2002
WORLD SCIENTIFIC eBooks, Dec 1, 2008
AbstractThe following sections are included:Diminishing Returns and Technological PessimismOverpo... more AbstractThe following sections are included:Diminishing Returns and Technological PessimismOverpopulationTrade and EmigrationTowards the Optimum PopulationA Formalization of the Wicksellian SystemThe Effects of Population Growth in the Old WorldTechnological ProgressProblems of Foreign TradeMigration from the Old to the New WorldConclusionsReferences
In all economic reasoning the fundamental questions are, on the one hand, how the allocation of r... more In all economic reasoning the fundamental questions are, on the one hand, how the allocation of resources is made — how the factors of production of the economy are employed in different activities — and, on the other hand, how the resulting output is distributed among the citizens and what the welfare consequences of a given allocation are. As far as the resource allocation is concerned, there are in principle two possibilities: either the allocation is handled impersonally by the ‘market forces’, or administrative processes are used. In the latter case resources are allocated with the aid of more or less central planning. In practice the economic system virtually always represents a mix of the two ways of organizing an economy. In a market economy the public sector usually plays a reallocating role, and in addition resources are usually allocated inside both firms and the public sector by administrative processes, not by markets. The branch of economics that deals with how well the allocation of resources functions is welfare economics. When you pass judgements with respect to the impact of different characteristics of markets or of policy interventions you are after the welfare effects.
Routledge eBooks, Apr 24, 2019
This chapter argues that, in order to understand the comparative performance of economies, both h... more This chapter argues that, in order to understand the comparative performance of economies, both how they were created and how they interact in an international context needs to be taken into account.
The need for a social security system can in different ways be derived from the failure of some i... more The need for a social security system can in different ways be derived from the failure of some individuals to command enough commodities (including services) to meet the standard of living conventionally defined as the ‘acceptable’ or ‘satisfactory’ minimum. Such a failure may occur for different reasons. Using the concepts of Amartya Sen,1 two parameters will be of fundamental importance in deciding whether an individual will fall short of the minimum acceptable standard; his endowment, that is his original ownership bundle (commodities and labour), and his exchange entitlement, i.e. the alternative commodity bundles that he can acquire, given his endowment, through trade or through production.
Haiti’s economic plight is well-known. The country is the poorest one in the Western Hemisphere, ... more Haiti’s economic plight is well-known. The country is the poorest one in the Western Hemisphere, with a per capita income which by the time President Aristide returned in 1994 was estimated at US$250–260 per annum, perhaps even lower — certainly so in the countryside which is home to the majority of the population.1 In addition, urban income is heavily concentrated in very few hands.2 As a result, half, if not more than half, of the inhabitants of nation’s capital are ultra-poor and have to spend at least 75 percent of their income to secure a daily intake of 1500 calories.3
Routledge eBooks, Dec 7, 2018
Part 1 Theories of international trade: the Rybczynski theorem under decreasing returns to scale ... more Part 1 Theories of international trade: the Rybczynski theorem under decreasing returns to scale staples trade and economic development natural resources, "vent-for-surplus" and the staples theory. Part 2 Trade and development: Spain and the conquest of America - profits, religion and forced labour in the 15th and 16th centuries the external sector in the economic development of Chile - 1850-1955 export-led growth as a determinant of social development in Costa Rica some experiences from regional cooperation between Third World countries. Part 3 Protectionism: emergency considerateness in Swedish agriculture - a retrospective look emergency policies for Swedish agriculture. Part 4 Factor movements and structural adjustment: international migration, remittances and real incomes - effects on the source country brain drain, illegal migration and capital exports from less developed economies - a neoclassical approach microeconomic aid and macroeconomic problems an evaluation of Swedish development cooperation with Nicaragua some experiences of structural adjustment in Africa.
Palgrave Studies in Economic History, 2019
This chapter provides a comprehensive survey of the oil sector, including the detailed boundary n... more This chapter provides a comprehensive survey of the oil sector, including the detailed boundary negotiations with Australia, the Petroleum Fund established in 2004, the relevance of Dutch Disease theories, corruption and the struggles to contain it, and the general issue of spending effectiveness. The revenues derived from oil and gas have accounted for around 80 percent of GDP during independence. The original intention was not to spend more than the yield from the oil fund every year so as to maintain its real value constant over time. However, excess withdrawals from the fund have been the rule since 2006. Oil and gas reserves that are currently exploited risk to be depleted in the near future. What all this means is that the oil and gas bonanza may soon come to an end, which will, in turn, reduce the ability to fund development projects, unless alternative, domestic, revenue sources can be developed.
Palgrave Macmillan UK eBooks, Nov 18, 2016
The Economics of the Frontier, 2016
This chapter surveys a number of frontier episodes (historical examples which bring out the impor... more This chapter surveys a number of frontier episodes (historical examples which bring out the importance of our approach).
Iberoamericana: Nordic Journal of Latin American and Caribbean Studies, 1994
Palgrave Macmillan UK eBooks, 2002
An old truth, but still one of the cornerstones in the theory of international trade, is that fre... more An old truth, but still one of the cornerstones in the theory of international trade, is that free trade under laissez-faire constitutes the optimal trade policy, provided that prices are flexible, production factors domestically mobile, the country cannot influence its terms-of-trade and all markets operate under conditions of perfect competition. However, free trade under laissez-faire is not the best policy in situations where some kind of distortions exist in the commodity or factor markets. (We will provide examples in next chapter.) In such cases better results are obtained with the aid of policy interventions of different kinds. Before we examine how these interventions work, we will investigate the condition that must be met if we are to achieve the highest possible welfare level in the open economy.
Palgrave Studies in Economic History, 2019
This chapter contrasts Timor’s record with the agricultural dynamism evident in much of Southeast... more This chapter contrasts Timor’s record with the agricultural dynamism evident in much of Southeast Asia. The agricultural sector is low in production, and it is not competitive internationally. Imports have to be resorted to in order to ensure food security. Production rests on shifting cultivation, bush fallow rotation, and simple hand tools. The main crops—rice and maize—both display considerable fluctuations, and their absolute yields are among the lowest in the region. The production of coffee, the most important export crop, is decreasing. The quality of the land is low and possibly declining, capital inputs are sparsely used, and credit is difficult to obtain. Most of the time, unimproved seed is used, but introduction of high-yielding varieties has proved successful for several crops. The low educational level and the lack of an effective extension service make the introduction of innovations difficult.
The Creation of the East Timorese Economy, 2019
This chapter covers the United Nations rule of East Timor, 1999–2002. The mission was charged wit... more This chapter covers the United Nations rule of East Timor, 1999–2002. The mission was charged with building an entirely new state, from scratch. This was a period with emphasis on peacekeeping and reconstruction activities instead of on institutional development. The contact between the UN personnel and the local population was minimal. It may be argued that some of the decisions taken then negatively affected future outcomes, but the UN necessarily had to tread lightly, given fractured Timorese community and the concern that Indonesia might destabilize the situation. By and large, however, the mission failed to prepare a domestic administration that could take over in a seamless fashion when the international personnel left the country.
The Distorted Economy, 2002
In the preceding chapter we outlined a theory for how individuals (or firms) organize themselves ... more In the preceding chapter we outlined a theory for how individuals (or firms) organize themselves into interest groups when there are public goods for the group which may be produced as a result of putting pressure on the government and the legislators. We will now take one more step in our analysis and see what the economic consequences of this behaviour may be. The activities of the interest groups towards securing favours for the members are known as rent seeking or directly unproductive profit-seeking (DUP) activities.
The Distorted Economy, 2002
The best example of ethnically based systematic discrimination can be found in the recent history... more The best example of ethnically based systematic discrimination can be found in the recent history of South Africa. Discrimination had been applied, in various forms, in the country since the beginning of the European colonization in the mid-seventeenth century until the early 1990s, when the system was officially abolished.
The Distorted Economy, 2002
WORLD SCIENTIFIC eBooks, Dec 1, 2008
AbstractThe following sections are included:Diminishing Returns and Technological PessimismOverpo... more AbstractThe following sections are included:Diminishing Returns and Technological PessimismOverpopulationTrade and EmigrationTowards the Optimum PopulationA Formalization of the Wicksellian SystemThe Effects of Population Growth in the Old WorldTechnological ProgressProblems of Foreign TradeMigration from the Old to the New WorldConclusionsReferences
In all economic reasoning the fundamental questions are, on the one hand, how the allocation of r... more In all economic reasoning the fundamental questions are, on the one hand, how the allocation of resources is made — how the factors of production of the economy are employed in different activities — and, on the other hand, how the resulting output is distributed among the citizens and what the welfare consequences of a given allocation are. As far as the resource allocation is concerned, there are in principle two possibilities: either the allocation is handled impersonally by the ‘market forces’, or administrative processes are used. In the latter case resources are allocated with the aid of more or less central planning. In practice the economic system virtually always represents a mix of the two ways of organizing an economy. In a market economy the public sector usually plays a reallocating role, and in addition resources are usually allocated inside both firms and the public sector by administrative processes, not by markets. The branch of economics that deals with how well the allocation of resources functions is welfare economics. When you pass judgements with respect to the impact of different characteristics of markets or of policy interventions you are after the welfare effects.
Routledge eBooks, Apr 24, 2019
This chapter argues that, in order to understand the comparative performance of economies, both h... more This chapter argues that, in order to understand the comparative performance of economies, both how they were created and how they interact in an international context needs to be taken into account.
The need for a social security system can in different ways be derived from the failure of some i... more The need for a social security system can in different ways be derived from the failure of some individuals to command enough commodities (including services) to meet the standard of living conventionally defined as the ‘acceptable’ or ‘satisfactory’ minimum. Such a failure may occur for different reasons. Using the concepts of Amartya Sen,1 two parameters will be of fundamental importance in deciding whether an individual will fall short of the minimum acceptable standard; his endowment, that is his original ownership bundle (commodities and labour), and his exchange entitlement, i.e. the alternative commodity bundles that he can acquire, given his endowment, through trade or through production.
Haiti’s economic plight is well-known. The country is the poorest one in the Western Hemisphere, ... more Haiti’s economic plight is well-known. The country is the poorest one in the Western Hemisphere, with a per capita income which by the time President Aristide returned in 1994 was estimated at US$250–260 per annum, perhaps even lower — certainly so in the countryside which is home to the majority of the population.1 In addition, urban income is heavily concentrated in very few hands.2 As a result, half, if not more than half, of the inhabitants of nation’s capital are ultra-poor and have to spend at least 75 percent of their income to secure a daily intake of 1500 calories.3
Routledge eBooks, Dec 7, 2018
Part 1 Theories of international trade: the Rybczynski theorem under decreasing returns to scale ... more Part 1 Theories of international trade: the Rybczynski theorem under decreasing returns to scale staples trade and economic development natural resources, "vent-for-surplus" and the staples theory. Part 2 Trade and development: Spain and the conquest of America - profits, religion and forced labour in the 15th and 16th centuries the external sector in the economic development of Chile - 1850-1955 export-led growth as a determinant of social development in Costa Rica some experiences from regional cooperation between Third World countries. Part 3 Protectionism: emergency considerateness in Swedish agriculture - a retrospective look emergency policies for Swedish agriculture. Part 4 Factor movements and structural adjustment: international migration, remittances and real incomes - effects on the source country brain drain, illegal migration and capital exports from less developed economies - a neoclassical approach microeconomic aid and macroeconomic problems an evaluation of Swedish development cooperation with Nicaragua some experiences of structural adjustment in Africa.
Palgrave Studies in Economic History, 2019
This chapter provides a comprehensive survey of the oil sector, including the detailed boundary n... more This chapter provides a comprehensive survey of the oil sector, including the detailed boundary negotiations with Australia, the Petroleum Fund established in 2004, the relevance of Dutch Disease theories, corruption and the struggles to contain it, and the general issue of spending effectiveness. The revenues derived from oil and gas have accounted for around 80 percent of GDP during independence. The original intention was not to spend more than the yield from the oil fund every year so as to maintain its real value constant over time. However, excess withdrawals from the fund have been the rule since 2006. Oil and gas reserves that are currently exploited risk to be depleted in the near future. What all this means is that the oil and gas bonanza may soon come to an end, which will, in turn, reduce the ability to fund development projects, unless alternative, domestic, revenue sources can be developed.