https://www.um.edu.mt/library/oar/handle/123456789/47742 2026-04-27T23:10:38Z https://www.um.edu.mt/library/oar/handle/123456789/57575 Title: The effect of a flat income tax system on labour supply and income distribution in Malta Abstract: The objective of this research is to analyse the impact of a 15 per cent flat income tax reform on labour supply in Malta, covering the period of 2009 and 2017. The analysis estimates the labour supply function and the wage elasticities for men and women being either single or married. Furthermore, the study examines the effect that a flat tax has on the income distribution and income inequality when compared to the progressive tax system of Malta. The income effect brought about by a change in the tax system is found to be greater than the substitution effect among individuals. Moreover, under the flat tax system, when compared to the elasticities under the progressive tax system, the sensitivity to changes in wages declined for married women; however, the reform is found to increase income inequality. Description: M.SC.ECONOMICS 2019-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/57446 Title: The demand for European integration : an identity economics approach Abstract: This study sets out to assess demand for European integration and the role that identity may play as a determinant. The research examines what constitutes the demand for European integration according to economic literature. Apart from the typically assessed socio-demographic and economic factors, the literature points towards the importance of identity in explaining the demand for European Union integration. More specifically, this study delves into the Maltese context and analyses the elements of the Maltese identity and their possible contribution to explain the demand for the European Union. Secondary data on demand for the European Union, identity and other explanatory variables were available for use in this dissertation. A series of correlation and regression analysis is carried out to statistically determine the relevance of Maltese identity. The overall results indicate that Maltese identity does indeed explain demand for the European Union. Identity is found to be a multi-facet variable that can have both a positive and negative relationship with demand for the European Union. Description: M.SC.ECONOMICS 2019-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/57433 Title: The link between governance and real effective exchange rates : a Balassa-Samuelson model Abstract: This paper examines the relationship between Real Effective Exchange Rates and measures of governance provided by the World Governance Index database through the Balassa-Samuelson model. An additional control variable of terms of trade was added to partly capture country-specific effects within the dataset. Through both static and dynamic panel estimation techniques, the model was applied for a sample of 151 countries across the period starting from 1996 till 2017. The inclusion of such models was made to address any potential biases associated with panel data estimation. Static model results suggest strong supporting evidence toward the presence of the B-S effects, revealing general wage increases factored in higher prices of tradable goods that follow relative increases productivity of the tradables sector. Dynamic panel models find little supporting evidence toward the effect for the entire sample, mainly reporting a negative yet significant coefficient for the first lag of the relative productivity proxy, contradicting the theory, and an insignificant coefficient for the lag of the dependent variable. However, following segmentation of data into developing and developed countries, the study strongly substantiates the B-S hypothesis for all categories of developing countries. Furthermore, all six governance indicators were found to be statistically significant for different model specifications, having a mixture of effects on the dependent variable, suggesting the importance given to the determination of exchange rates through high quality management of governance. Description: M.SC.ECONOMICS 2019-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/57197 Title: A study on the benefits and costs of tourism in Malta Abstract: The dissertation aims to perform a quantitative analysis of the economic benefits and economic costs of the tourism industry in Malta. Using the knowledge obtained from a review of the economic literature (chapter 2) and an analysis on the historical trends of the tourism industry (chapter 3), this study will quantitatively analyse the positive and negative impacts that an increase of 1 million tourists (over the current volumes of inbound tourism) would have on the Maltese economy. The main economic benefits will be calculated through the use of the Symmetrical Input-Output Table (SIOT), and the Leontief demand-driven model in combination with the Tourism satellite accounts while econometric models will be used to measure the economic costs of tourism. The main conclusions of the study suggest that the direct economic benefits of tourism far outweigh the direct economic costs of tourism. However, if indirect costs had to be factored in, the difference between the benefits and costs of the tourism industry in Malta would be closer, particularly as the volumes of inbound tourism increase. Description: M.SC.ECONOMICS 2019-01-01T00:00:00Z