University education and income – does prior achievement matter?

The purpose of this study is to find out if the income premium from university entrance differs with respect to prior achievement as measured by previous grades. Using income at the age of 28 to 30, we analyze if high-achievers have larger income premiums from entering university than low-achievers in a sample of Swedish upper secondary school students. We find that income differences generally are positive, albeit larger for females than for males. It is also found that the income premium is larger for high-achievers than for low-achievers. However, especially for males, the income premium rises only marginally with prior achievement for a large part of the grade distribution, indicating that there are only small differences in the returns to university entrance for a majority of upper secondary school graduates.Premium; Predictive validity; Upper secondary GPA; Achievement; University entrance

The fixed effects estimator of technical efficiency

Firms and organizations, public or private, often operate on markets characterized by non-competitiveness. For example agricultural activities in the western world are heavily subsidized and electricity is supplied by firms with market power. In general it is probably more difficult to find firms that act on highly competitive markets, than firms that are not. To measure different types of inefficiencies, due to this lack of competitiveness, has been an ongoing issue, since at least the 1950s when several definitions of inefficiency was proposed and since the late 1970s as stochastic frontier analysis. In all three articles presented in this thesis the stochastic frontier analysis approach is considered. Furthermore, in all three articles focus is on technical inefficiency. The ways to estimate technical inefficiency, based on stochastic frontier models, are numerous. However, focus in this thesis is on fixed effects panel data estimators. This is mainly for two reasons. First, the fixed effects analysis does not demand explicit distributional assumptions of the inefficiency and the random error of the model. Secondly, the analysis does not require the random effects assumption of independence between the firm specific inefficiency and the inputs selected by the very same firm. These two properties are exclusive for fixed effects estimation, compared to other stochastic frontier estimators. There are of course flaws attached to fixed effects analysis as well, and the contribution of this thesis is to probe some of these flaws, and to propose improvements and tools to identify the worst case scenarios. For example the fixed effects estimator is seriously upward biased in some cases, i.e. inefficiency is overestimated. This could lead to false conclusions, like e.g. that subsidies in agriculture lead to severely inefficient farmers even if these farmers in reality are quite homogenous. In this thesis estimators to reduce bias as well as mean square error are proposed and statistical diagnostics are designed to identify worst case scenarios for the fixed effects estimator as well as for other estimators. The findings can serve as important tools for the applied researcher, to obtain better approximations of technical inefficiency

Quasibounded plurisubharmonic functions

We extend the notion of quasibounded harmonic functions to the plurisubharmonic setting. As an application, using the theory of Jensen measures, we show that certain generalized Dirichlet problems with unbounded boundary data admit unique solutions, and that these solutions are continuous outside a pluripolar set

Optimal Taxation and Risk-Sharing Arrangements in an Economic Federation

This paper analyzes optimal taxation and risk-sharing arrangements in an economy with two levels of government. Both levels provide public goods and finance their expenditures via labor income taxation, where the tax base is responsive to the private agents' labor supply decisions. The localities are assumed to experience different random productivity shocks, meaning hat the private labor supply decisions as well as the choices of income tax rates are carried out under uncertainty. Part of the central overnment's decision problem is then to provide ax revenue sharing between the local governments. The optimal degree of revenue sharing depends on whether or not the localities/regions differ with respect to labor supply incentives.Optimal taxation; multilevel government; fiscal externalities; uncertainty; risk-sharing

Optimal Tax Progression: Does it Matter if Wage Bargaining is Centralized or Decentralized?

We study how the optimal use of labor income tax progression depends on whether the wage bargaining system is decentralized or centralized. Assuming a nonlinear labor income tax and an unrestricted profit tax, we show that a Utilitarian government is able to implement the first best resource allocation with a zero marginal labor income tax rate under decentralized wage bargaining, whereas centralized bargaining typically implies a progressive tax as well as unemployment. However, if the government and a (central) wage-setter bargain over wage formation and public policy, the resulting equilibrium is characterized by full employment and a zero marginal tax rate.Optimal taxation; tax progressivity; wage bargaining; corporatism

E-exchange and the Boundary between Households and Organizations

The new information and communication technology, ICT, induces households to take over tasks from firms and government agencies, using tools and systems provided by these very same organizations. The result is often joint production activities. We argue that the importance of ICT for the exchange process between households and organizations is underestimated by only considering the consequences for the last stage of the process, i.e., the final purchase of goods and services. Our analysis of household behavior utilizes a modified version of Gary Becker’s model of the household as a combined producer-consumer.internet information, e-exchange, household production, co-production, household power, exit/voice

A model for regional analysis of carbon sequestration and timber production

The greenhouse effect is one of our most severe current environmental problems. Forests make up large ecosystems and can play an important role in mitigating the emissions of CO2, the most important greenhouse gas. Different management regimes affect the ability of forests to sequester carbon. It is important to investigate in what way we best can use forests to mitigate the greenhouse effect. It is also important to study what effect different actions, done to increase carbon sequestration, have on other offsets from forestry, such as the harvest level, the availability of forest biofuel and economic factors. In this study, we present an optimization model for analysis of carbon sequestration in forest biomass and forest products at a local or regional scale. The model consists of an optimizing stand-level simulator, and the solution is found using linear programming. Carbon sequestration was accounted for in terms of carbon price and its value computed as a function of carbon price and the net carbon storage in the forest. The same price was used as a cost for carbon emission originating from deterioration of wood products. We carried out a case study for a 3.2 million hectare boreal forest region in northern Sweden. The result showed that 1.48–2.05 million tonnes of carbon per year was sequestered in the area, depending on what carbon price was used. We conclude that assigning carbon storage a monetary value and removal of carbon in forest products as a cost, increases carbon sequestration in the forest and decreases harvest levels. The effect was largest in areas with low site-quality classes

Fixed Budgets as a Cost Containment Measure for Pharmaceuticals

In the county of Västerbotten, Sweden, there are two health centres which (contrary to all other health centres in the region) have a strict responsibility over their pharmaceutical budget. The purpose of this paper is to examine if the prices and quantities of pharmaceuticals prescribed by physicians working at these health centres differ significantly from those prescribed by physicians at health centres with open-ended budgets. Estimation results using matching methods, which allows us to compare similar patients at the different health centres, show that the introduction of fixed pharmaceutical budgets did not affect physicians' prescription behaviour.pharmaceuticals; cost containment; propensity score matching

Municipal preferences for state imposed amalgamations: An empirical study based on the 1952 municipal reform in Sweden

This paper concerns municipal preferences for state imposed municipal amalgamations. The main purpose of the paper is to study what factors that can explain municipal acceptance or objection of a state imposed amalgamation decision. The empirical analysis is based on the extensive municipal reform in Sweden in 1952. As much as 66 percent of the newly formed municipalities had at least one municipality that objected to the new organisation. The results indicate that the size of the municipality is of importance; small and large municipalities are most likely to accept the amalgamation decision. Furthermore, the relative municipal size affects the probability of accepting the amalgamation decision and equally sized municipalities are less likely to amalgamate on a voluntary basis. We also find that interjurisdictional co-operation prior to the reform has a positive effect on the municipal decision to accept the new municipal structure.Local government structure; municipal amalgamations; heterogeneous preferences