Abstract  Course: NAA305 Bachelor Thesis in Economics 15 ECTS  University: Mälardalen University, School of Business, Society and Engineering, Västerås  Title: The effects of immigration on the income of native-born workers:  Evidence from Sweden Author: Arnold Schanzer-Larsen  Supervisor: Johan Lindén  Problem: Sweden has experienced a lot of immigration, and the phenomenon has received a great deal of attention in the public and political debate. There is, among other things, fear that immigration could be harmful for the labor market outcome of the receiving country. Researchers from a variety of countries have tried to address this issue by estimating the effect of immigration on the native wage of the receiving country. The results have varied strongly and no universal conclusion can be drawn. For what can be said about Sweden, there is no paper (of our knowledge) that has done any similar estimates. For that reason, it is of great importance that there is some research which could bring empirical evidence and shed light on the debate.  Purpose of the Research: The aim of the thesis is to quantitatively measure immigrations effect on the wage of native workers in Sweden. Methodology:  Conducting a panel study, observation of the average native income from 290 municipalities over 2011-2019 was collected. The effect was estimated using OLS regression technique and a fixed effect model.  Conclusion: From a 10% increase in the share of foreign-born within a municipality, led on average to a 2.89% increase in the native average income in that municipality.  Keywords: Immigration, Income, Wage, Unemployment rate, Panel study, Fixed effect model, Native, Labor market, The equilibrium model, Human capital, Skill-composition

Sweden was one of the few countries in the EU that in most cases decided to keep their elementary schools open during the COVID-19 pandemic. The purpose of this study was to investigate potential outcomes COVID-19 has had on students´ average merit scores as well as group-specific effects across genders and school types. To further estimate which factors might have also influenced students´ success, we decided to consider the share of higher educated parents and the municipality income for compulsory schools in our research. Using the fixed effects method, a few models were constructed to analyze the different effects. We found that in general, COVID-19 had a significant and positive effect on the average merit score of students across all elementary schools in Sweden, suggesting that there have been other factors influencing their academic performance. Furthermore, it was found that gender disparities and the share of higher educated parents have affected the average academic performance, whereas the municipality income for compulsory schools did not. Lastly, private schools were found to perform less positively compared to public schools.

自一九七七年Ainger,Lovell,and Schmidt 發表隨機性邊界生產函數估計方法一文以 後，這項方法便廣泛地應用於廠商生產技術效率的估計。然而， Ainger，et al的方 法係利用單一年度橫斷面資料，方法中有一些缺失，例如：技術無效率部份的統計分 配假設、技術無效率部份與生產投入可能存在某些相關，以及技術無效率可能會隨廠 商經營期間而變化。本文的目的，即嚐試利用橫斷面與時間數列混合資料來修正上述 缺點，分析對象為台灣地區的外人投資廠商，包含電子電器、基本金屬、橡塑膠製品 、化學等產業，時間由民國64年至71年共八年。 台灣地區自一九五二年引進直接外人投資，外資在我國的經濟發展過程扮演重要角色 。過去有關台灣地區外人投資的文獻甚多，然而有關外資廠商生產效率的研究卻不多 見，直至目前僅 Chen and Tang(1987)，劉錦添與蔡偉德(1989)兩篇，且均偏重於橫 斷面的分析。本文將利用近年來發展的Panel Data生產技術效率測定方法來進行，文 中主要參考Schmidt and Sickles(1984) 與Cornwell，Schmidt and Sickles (1988) 兩篇著作。在實證中，假設廠商生產函數為Cobb-Douglas函數，分別利用「固定效果 」(fixed effect)及「隨機效果」(random effect) 二種模型。固定效果模型認為廠 商生產技術效率差異為一固定係數，反映於迴歸式截距項的差異；而隨機效果模型假 設生產術效率項目為隨機變數，效率的差異反映於迴歸式中殘差項的差異。此外，由 於生產因素投入與效率可能存在相關，為得到具有一致性的估計值，本文將利用工具 變數方法來修正。最後，本文分析不同年度廠商效率之變化，並探討造成效率變化之 原因。

1978年中國大陸在經濟上採取改革開放政策後，中國大陸克服資金不足、技術落後等問題，經濟快速成長、人民生活水準和人均生產總值皆大幅提升。但中國大陸內部卻面臨各地區經濟發展的程度有極大落差的困局。為此，中國大陸政府提出多項區域發展政策，期能撫平區域發展不均衡的差距，「西部大開發」即為其中之一，希望能藉此一舉改善西部目前發展上的弱勢。但是西部地區要脫離落後狀態朝向發展所需要之條件究竟為何?西部大開發政策所切入之角度是否正中西部所需?本文將由影響外商投資西部的決定性因素，來評估西部大開發政策之成效。透過1997至2005年外商對中國西部地區投資的追蹤資料，搭配固定效果模型的估計，分析影響外商至西部進行投資的趨勢及決定性因素為何，並以估計之結果檢視「西部大開發」政策是否切中西部發展所需，確實改善西部投資環境。 根據實證結果顯示，吸引外商至西部進行投資的決定性因素有四，分別為相對工資率、基礎建設、礦產資源，以及外資開放程度。其他的變數如市場大小、勞動力素質、國營企業比重、中央移轉性支付比例以及優惠政策等，皆未有顯著影響。 關鍵詞：西部大開發、外來直接投資、固定效果模型、決定因素 分類號：B23、C33、F21、R58 / Since China has adopted the so-called “open door policy” in 1978, it has overcame its shortage of economic investment and lagged technology by accepting foreign direct investment（FDI） and the “east-tilted” policy. Two decades later, while China enjoys its high economic growth rate, it has to solve the dilemma of keeping economy growing or balancing the regional disparity. Hence the China government has proposed the “Western Region Development” policy to facilitate the slow-growing economy in west China. Since FDI has played an important role in China economical development, the purpose of this study is to investigate the foreign direct investment in West China, and the flowing issue is using the results to evaluate the efficiency of Western Region Development policy, to see if the policy meet the need of western regional development. This study has based upon the panel data for western region during the period of 1997-2005 and fixed-effect model to investigate the determinants of FDI in West China. The result shows relative wage rate, infrastructure, mine resource, and openness to the rest of the world. Finally, in order to reduce the mistakes occurred in models and enable the study more rigorous, uses more methods to test the models and the result. Keywords: Western Region Development, Fixed-Effect Model, Foreign Direct Investment, Determinants JEL Classification: B23、C33、F21、R58

This thesis consists of three chapters on economic and econometric applications of Bayesian parameter estimation and model comparison. The first two chapters study the incidental parameter problem mainly under a linear autoregressive (AR) panel data model with fixed effect. The first chapter investigates the problem from a model comparison perspective. The major finding in the first chapter is that consistency in parameter estimation and model selection are interrelated. The reparameterization of the fixed effect parameter proposed by Lancaster (2002) may not provide a valid solution to the incidental parameter problem if the wrong set of exogenous regressors are included. To estimate the model consistently and to measure its goodness of fit, the Bayes factor is found to be more preferable for model comparson than the Bayesian information criterion based on the biased maximum likelihood estimates. When the model uncertainty is substantial, Bayesian model averaging is recommended. The method is applied to study the relationship between financial development and economic growth. The second chapter proposes a correction function approach to solve the incidental parameter problem. It is discovered that the correction function exists for the linear AR panel model of order p when the model is stationary with strictly exogenous regressors. MCMC algorithms are developed for parameter estimation and to calculate the Bayes factor for model comparison. The last chapter studies how stock return's predictability and model uncertainty affect a rational buy-and-hold investor's decision to allocate her wealth for different lengths of investment horizons in the UK market. The FTSE All-Share Index is treated as the risky asset, and the UK Treasury bill as the riskless asset in forming the investor's portfolio. Bayesian methods are employed to identify the most powerful predictors by accounting for model uncertainty. It is found that though stock return predictability is weak, it can still affect the investor's optimal portfolio decisions over different investment horizons.

Income inequalities have become a matter of major concern following reports that the working class and lower middle class of developed economies have income levels that are falling behind. Few studies have been conducted on the regional level even though this perspective might better capture the development of income inequalities, since national averages might hide local differences. This study uses panel data for 286 Swedish municipalities in between 1991-2017 and fixed effect regressions, to examine if the theory of a skill-biased technological change could be used to explain resent developments. We find an labor income divergence for Swedish municipalities within the studied time period. The share of high skilled workers is found to be a good predictor of the growth in regional labor income inequalities, while an ageing population of the regions falling behind counteracts the growth of inequality, possibly leading to an underestimation of the size of regional labor income divergence. These results are in support of a skill-biased technological change at work and a job polarization transforming regional labor markets and regional societies. We conclude that adopting a regional perspective in the analysis and development of future economic growth policies is necessary to ensure long term economic growth, equality of opportunity and social cohesion.

Die vorliegende Dissertation besteht aus drei Kapiteln über die Investmentfonds. Das erste Kapitel befasst sich mit der Rolle der Fondsmanager in der Bilanzverschönerung. Auf Basis der Analyse der Karrierewege von amerikanischen Fondsmanagern werden signifikante zusammenwirkende Manager-Fixed-Effects identifiziert, die nach der Kontrolle der endogenen Matching-Probleme immer noch robust sind. Die geschätzten Manager-Fixed-Effects haben signifikante Einflüsse auf die Out-of-Sample-Vorhersagen. Außerdem wird festgestellt, dass die Verriegelungen der Investmentfonds, die von gemeinsamen Managern verwaltet wurden, wichtige Kanäle für die Bilanzverschönerung verursachen. Das zweite Kapitel beschäftigt sich mit den Investmentstrategien der Fonds im Hinblick auf die Nutzung von Credit Default Swaps (CDS). Die Zuordnung der CDS-Positionen der Investmentfonds zu ihrem Bestandportfolio bietet eine neue Methodik zur Identifizierung der CDS-Strategien und kompensiert somit die Analysen der existierenden Literatur auf der Makroebene. Die Ergebnisse zeigen, dass die Anreize zur Risikoreduzierung die Spekulationsanreize dominieren, insbesondere, wenn die Kreditexposition durch ungedeckte Leerverkäufe der CDS-Verträge erhöht wird. Die erfahrenen Fondsmanager tendieren dazu, mehr Kreditrisiko in Kauf zu nehmen, während es für die Fondsmanagerinnen wahrscheinlicher als für ihre männlichen Kollegen ist, gegen das bestehende Risiko abzusichern. Der letzte Teil nimmt die Pleite von Lehman Brothers unter die Lupe, um sich mit der daraus resultierenden unerwarteten Schließung der CDS-Positionen als einem natürlichen Experiment auseinanderzusetzten. Diese Studie dient zur Untersuchung der Risiko- und Leistungsimplikationen der CDS-Investments der Fonds. Die Investmentfonds besitzen bei ihren CDS-Transaktionen im Durchschnitt einen beachtlichen Teil Extremrisiko. Während die CDS-Nutzer von guten Gesamtmarktlagen profitieren, erleiden sie unter Verlusten bei geclusterten Ausfällen. / This dissertation comprises of three chapters on mutual funds. The first chapter establishes the role of managers in the deceptive practice of window dressing. Employing comprehensive career history of U.S. mutual fund managers, I find strong jointly significant manager fixed effects, which are robust after addressing endogenous matching concerns. The estimated manager fixed effects are significant in making out-of-sample predictions. Further I establish that mutual fund interlocks through common managers are important channels that spread window dressing. The second chapter studies the investment strategies of mutual funds regarding their use of credit default swaps (CDS). Matches between mutual funds’ CDS positions and their underlying portfolio in the holdings facilitate a new approach in identifying CDS strategies that complements the “macro” level analyses in the existing literature. I find risk reducing incentives are dominated by speculative incentives, especially those to increase credit exposure via naked short CDS contracts. Experienced fund managers tend to take on more credit risk, while female managers are more likely to hedge comparing with their male peers. The third chapter employs the collapse of Lehman Brothers and the resulting sudden closures of CDS positions as a natural experiment to examine the risk and performance implications of mutual funds’ CDS investments. Funds on average load up on a significant amount of tail risk by trading CDS. While CDS users benefit when market conditions are favorable, they suffer during periods of clustered defaults.

Este trabalho apresenta três extensões ao modelo de reputação proposto por Shapiro (1983). A primeira torna o modelo original mais adequado para avaliar o problema de informação assimétrica de bens de busca e bens credenciais, a segunda permite identificar o ganho de eficiência gerado pela inclusão de um sistema de informação adicional e, a terceira mostra que a provisão de um volume maior de informação pode gerar efeitos adversos quando o produto em questão possui vários atributos. Em seguida, os desenvolvimentos teóricos são utilizados para avaliar os efeitos da introdução do Exame Nacional de Cursos sobre o mercado de cursos superiores do Brasil. Algumas das predições do modelo são testadas empiricamente, fornecendo indicações de que este Exame possui um papel relevante para mitigar o problema de informação identificado neste mercado. / This essay presents three extensions to the model first proposed by Shapiro (1983) regarding reputation. The first extension adjusts Shapiro’s original model in order to make it more suitable in dealing with the problem of asymmetric information of search goods and credence goods. The second one allows the identification of the efficiency gains obtained after the inclusion of an additional information system, while the third extension demonstrates that additional information could generate adverse effects when the good under consideration has several attributes. These theoretical extensions are then applied to evaluate the effects of the Brazilian experience regarding the introduction of the Courses National Exam - Exame Nacional de Cursos – on Brazil’s market of undergraduate school courses. Some of the theoretical predictions of the model are empirically tested, offering indications that such exam plays a relevant role while diminishing the informational problem that characterizes this market.

本文係針對台灣地區各縣市1999至2008年之老人安養機構設立之床位數進行分析，利用雙因子固定效果模型（two-factor fixed effects model）探討台灣地區各縣市老人安養機構設立之重要影響變數，以及這些變數對於老人安養機構設立床位數影響程度之強弱。本文首先將文獻之檢閱做整理介紹，先概述至今國內外討論老人安養機構設立及使用之相關文章重要觀點，了解這些文章作者的研究時間與空間範圍、所使用分析方法、論點及其變數設定，在最後與本研究之結論相互比較，觀察文獻與本研究之間是否具有一致性。 由於本論文重視各地區變數之影響，故本研究使用具地域性之各縣市數據資料作為變數，經由資料蒐集，將合適之變數納入研究考量，參閱文獻資料，加上能夠取得之數據資料為考量。本文將討論下列變數：台灣地區實質薪資、各縣市老年人口數、各縣市人口密度、各縣市教育程度為大專及以上人口之比率、各縣市失業率、各縣市女性勞動參與率、各縣市15歲以上人口婚姻狀況有偶人數比率、各縣市出生率、各縣市外籍與大陸配偶人數、各縣市社福外籍勞工人數以及各縣市每萬老人接受居家服務人次等十一個變數。對於老人安養機構設立數之關係，觀察其影響程度，了解各地區差異，期能對政府提供具體的政策建議，並對未來各縣市公私立老人安養機構之設立提供參考。 / This study analyses the number of the beds established of the long-term care (LTC) facilities of each city and county in Taiwan between 1999 and 2008, using “two-factor fixed effects model” to explore some of the important influential variables of the long-term care facilities of each city and county, and the strength of the relation of these variables of the hospital beds. This article firstly introduces and reviews some articles and studies that are basically related, and overview the important points of view of the establishment of the long-term care facilities, to understand the analytical methods and the arguments of these articles and authors. As the importance of this thesis, the effect of regional variables, the study uses cities and counties level variables. Through data collection, using the variables in the study that are considered appropriate. Refer to the literature, adding with data obtained for the considerations. This article will discuss the following variables: the real wage of Taiwan each year, the number of counties and cities in the elderly population, the population density, the population with tertiary education level, the unemployment rate, the female labor force participation rate, the population over the age 15 that have marital status, the proportion of birth rate, the number of foreign and mainland spouses, the number of the welfare of foreign workers per 10,000 of the elderly receiving home care people, totally 11 variables. To establish the relationship between the number of observed effect level of long-term care facilities of each city and county, to understand the regional differences, to provide the government on specific policy recommendations. In the future, we expect to provide the public and private sectors the reference establishment of nursing agencies of each city and county.

區域間由於發展背景與功能取向不同，以致各地區社會福利支出比例有所差異，對治安與生活品質亦造成不同的影響。社會福利制度是促進整體社會平等、維持人民生存的重要體制；犯罪人口的多寡，則是影響國家成長與進步的重要社會問題之一。本研究主要目的為探討台灣地區社會福利支出對總犯罪率、各年齡層（少年、青年與成年）及失業者犯罪人口率之影響程度，並進一步分析不同社會福利補助支出對總體犯罪率及上述不同群體的個別影響方向。研究範圍為1999-2009年台灣地區23個縣市別的追蹤資料（panel data），利用雙因子固定效果模型（two-way fixed-effect model）同時分析各縣市之個別特質與時間趨勢效果，可對討論議題提供精確的估計結果。研究結果顯示，台灣各縣市社會福利支出與總體犯罪率間不存有顯著關係。進一步分析五種社會福利補助支出，發現家庭生活扶助對於改善整體及各年齡層的犯罪問題皆具有良好效果；其他如就學生活補助、醫療補助與急難救助對部分族群之犯罪問題亦有正面幫助。唯失業給付對犯罪問題並無正面影響。因此建議可藉由調整社會福利支出的比例以降低犯罪問題的發生。 / As the mode of growth and orientation policy in various area are different, resulting in proportion of social welfare spending and influence on public security and quality of life are also different. This study aims to investigate the influence of social welfare spending as well as different social welfare assistance on the total crime rate and crime rate of population of specific age groups and unemployed in Taiwan. Using the cross-regional panel data of 23 counties during the period 1999-2009 in Taiwan. The empirical results from two-way fixed-effect model found that there is no significant relationship between social welfare spending and crime rate. However, analyzing the further five social welfare assistances with regard to improve crime problem has been proved, especially living support assistance. Therefore, this study suggests that the criminal coping strategy is proposed to adjust proportion social welfare spending to reduce criminal problems.