Browsing by Author "Tengstam, Sven"

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Debt Relief and Adjustment Effort in a Multi-Period Model
(2005) Tengstam, Sven; Department of Economics
This paper shows that if the period following the granting of debt relief is taken into account, debt relief increases adjustment effort (investment), irrespective of whether there is an initial debt overhang or not.
Disability and Marginal Utility of Income
(2007-11-21T12:13:55Z) Tengstam, Sven
It is often assumed that disability lowers the marginal utility of income. In this article individuals’ marginal utility of income in two states, (1) paralyzed in both legs from birth and (2) not mobility impaired at all, are measured through experimental choices between imagined lotteries behind a so-called “veil of ignorance”. The outcomes of the lotteries include both income and disability status. It is found that most people have higher marginal utility when paralyzed than when not mobility impaired at all. The median ratio of the two marginal utilities is estimated at between 1.16 and 1.92. The two marginal utilities are evaluated at the same levels of income. Quite little of the heterogeneity in this ratio can be explained by socio-economic background, but having personal experience of mobility impairment and supporting the Left party, the Social democratic party, the Green party or the Liberal party are associated with having a high ratio. The results suggest, in contrast to e.g. Finkelstein et al. (2008) and Viscusi and Evans (1990) that more than full insurance of income losses connected to being disabled is optimal. The results further suggests, in contrast to e.g. Sen (1997) and Roemer (1985, 1996, 2001), that given a utilitarian social welfare function resources should be transferred to, rather than from, disabled people. Finally, if the transfers are not large enough to smooth out the marginal utilities of the disabled and the non-disabled, distributional weights based on disability status (in opposite to income) should be used in cost-benefit analysis.
Do the land-poor gain from agricultural investments? Empirical evidence from Zambia using panel data
(2015-08) Ahlerup, Pelle; Tengstam, Sven; Dept. of Economics, University of Gothenburg
In the context of the global land rush, some portray large-scale land acquisitions as a potent threat to the livelihoods of already marginalized rural farming households in Africa. In order to avoid the potential pitfall of studying a particular project that may well have atypical effects, this paper systematically investigates the impact on commercial farm wage incomes for rural smallholder households of all pledged investments in the agricultural sector in Zambia between 1994 and 2007. The results suggest that agricultural investments are associated with a robust moderate positive effect, but only for households with a relative shortage of land.
Does immigration affect welfare state generosity? Quasi-experimental evidence
(2014-06) Jakobsson, Niklas; Tengstam, Sven; Dept. of Economics, University of Gothenburg
This note studies the impact of immigration on welfare state generosity in 12 Western European countries. In estimations not coping with the possible endogeneity problem, there are indications of a negative relationship between immigration and welfare state generosity. However, when the distance to the Balkan wars are used as a source of exogenous variation in the immigrant share, as to overcome potential endogeneity in mobility across countries, our findings suggest that an increase in the immigrant share does not decrease welfare state generosity.
Essays on Smallholder Diversification, Industry Location, Debt Relief and Disability and Utility
(2008-12-09T12:44:01Z) Tengstam, Sven
Renewed Growth and Poverty Reduction in Zambia
(2009-12-21T09:05:16Z) Bigsten, Arne; Tengstam, Sven
The Zambian economy has grown relatively fast over the last decade up to the current global financial crisis. This paper discusses the challenge of using these growing resources effectively to improve the welfare of the population and to reduce poverty. The poverty head count index is found to have declined from 1998 to 2004 by about 5.4 percentage points. This change can be decomposed into a 6.6 percentage point reduction due to growth and a 1.2 percentage point increase due to inequality change. Since poverty is most severe in the rural areas it is important to make agriculture more efficient by improving roads and electricity, extension services and education. Our discussion further highlights the need to improve tax revenue collection and efficiency in realising budget expenditure plans. An important reform to undertake would be to change the budget cycle. The private sector development strategy should make the country a more attractive destination for private investors by creating a better business environment and infrastructure. The country also needs a new trading arrangement with the EU. Poverty relevant social services such as health and education remain vital. The health sector needs to be strengthened both because it has an immediate effect on welfare and because it helps build and protect human capital that is essential for long-term growth. Also social protection might have a role to play. It might be possible to use schools for channelling resources to the poor. Finally, improved governance helps all other measures to become more efficient.
The Changing Structure of Swedish Foreign Aid
(2016-03) Bigsten, Arne; Isaksson, Ann-Sofie; Tengstam, Sven; Dept. of Economics, University of Gothenburg
The study investigates how the composition and character of aid of Swedish aid has changed over time, and what effects these changes have had for the potential to realize key aspects of the Paris agenda such as ownership, alignment, harmonisation, and accountability and the ability to deliver aid efficiently. We analyse the changes in Swedish aid flows since 1990 and compare with changes in the global pattern in terms of purpose, country allocation, channels, and modalities. We discuss how these changes are likely to have affected the efficiency of Sweden as a donor. We conclude with a discussion about the future direction of Swedish aid.
What Explains the International Location of Industry? -The Case of Clothing
(2009-12-21T08:54:59Z) Tengstam, Sven
The clothing sector has been a driver of diversification and growth for countries that have graduated into middle income. Using a partial adjustment panel data model for 61 countries 1975-2000, we investigate the global international location of clothing production by using a combination of variables suggested by the Heckscher-Ohlin theory and the New Economic Geography (NEG) theory. Our Blundell-Bond system estimator results confirm that the NEG variables do help explain the location of the clothing industry, and point to that convergence is not as inevitable as sometimes assumed. We find that closeness to various intermediates such as low-cost labor and textile production has strong effects on output. Factor endowments and closeness to the world market have inverted U-shaped effects. This is expected since above a certain level several other sectors benefit even more from closeness and factor endowments, driving resources away from the clothing industry.
What Explains the International Location of the Clothing Industry?
(2008-02-21T10:23:14Z) Tengstam, Sven
The clothing sector has been a driver of diversification and growth for countries that have graduated into middle income. Using a partial adjustment panel data model, this study tries to explain the international location of clothing production based on a combination of variables suggested by the Heckscher-Ohlin theory and by New Economic Geography theory. Our Blundell-Bond system estimator results show that closeness to intermediates such as low-cost labor and textile production has a positive effect on clothing production. Factor endowment and closeness to the world market have inversed U-shaped effects. This is expected, because above a certain level several other sectors benefit even more from closeness and factor endowments, driving resources away from the clothing industry.