Do Governments Tax Agglomeration Rents?

Using the German local business tax as a testing ground, we empirically investigate the impact of firm agglomeration on municipal tax setting behavior. The analysis exploits a rich data source on the population of German firms to construct detailed measures for the communities’ agglomeration characteristics. The findings indicate that urbanization and localization economies exert a positive impact on the jurisdictional tax rate choice which confirms predictions of the theoretical New Economic Geography (NEG) literature. Further analysis suggests a qualification of the NEG argument by showing that a municipality’s potential to tax agglomeration rents depends on its firm and industry agglomeration relative to neighboring communities. To account for potential endogeneity problems, our analysis exploits long-lagged population and infrastructure variables as instruments for the agglomeration measures.agglomeration rents, corporate taxation, regional differentiation

The winner gives it all: Unions, tax competition and offshoring

This paper analyzes competition for capital between welfare-maximizing gov- ernments in a framework with agglomeration tendencies and asymmetric union- ization. We find that a unionized country's government finds it optimal to use tax policy to induce industry to relocate towards a location with a competitive labor market instead of realizing the benefits from higher wage income while exporting part of the wage burden to foreign consumers. Via the tax regime effect, which favors the factor capital, and the efficiency effect, consumers and producers alike benefit from off-shoring industry towards a low-cost country. Our result qualifies first intuition that defending high wage industries is beneficial to a country as part of the associated cost is shifted to foreign consumers.tax competition, trade unions, agglomeration

Stress Reduction Program in a Military Clinic

Occupation-related stress has been a long-standing concern of the health care industry. Studies indicate that health care workers have higher rates of substance abuse and suicide than other professionals and elevated rates of depression and anxiety linked to job stress. In addition to psychological distress, other outcomes of job stress include burnout, absenteeism, employee intent to leave, reduced patient satisfaction, and diagnosis and treatment errors. Mindfulness interventions, such as practicing yoga on a regular basis, have been found to be effective in reducing work-related stress by multiple researchers. The overall level of stress, anxiety and depression decreased after implementation of intervention such as yoga or mindfulness exercise. The purpose of this project was to implement a weekly yoga-based stress reduction program for health care employees of a military outpatient primary care clinic. A sample of 29 staff members from an outpatient military clinic participated in eight onsite yoga classes two times per week for four weeks. Self-reported perception of stress was measured before and after the yoga intervention using the Perceived Stress Scale (PSS). Mean PSS scores improved significantly t (28) = 4.72, p\u3c.0001. The yoga class was effective in reducing employee perceived stress over the four weeks and continues to be offered onsite for clinic employees one time per week. Keywords: stress, burnout, exhaustion, health-care, and yog

Transcriptomic and proteomic studies on longevity induced by over-expression of HSP22 in drosophila melanogaster

Le vieillissement est un processus complexe accompagné par une capacité diminuée des cellules à tolérer et répondre aux formes différentes de stress causant des dommages comme l'agrégation de protéine dans les différentes composantes de la cellule. Les chaperons sont des joueurs probablement importants dans le processus de vieillissement en prévenant la dénaturation et l'agrégation des protéines. Chez Drosophila melanogaster, une petite protéine de choc thermique, Hsp22, localisée dans la matrice mitochondriale montre une expression elevée pendant le vieillissement. Sa surexpression chez la mouche augmente la durée moyenne de vie ainsi que la résistance au stress. Bien que Hsp22 montre une activité de chaperon dans des essais in vitro, les mécanismes par lesquels Hsp22 permet d’accroitre la durée de vie in vivo sont toujours inconnus. Une analyse transcriptionelle de tout le génome par microarrays et une analyse comparative du protéome mitochondrial par MALDI-TOF a été entreprise pour dévoiler les différences d’expression entre les mouches surexprimant Hsp22 et les contrôles appropriés. La surexpression générale de Hsp22 en utilisant le système GAL4/UAS dans Drosophila résulte en une augmentation de ~ 30% dans la durée de vie moyenne. L'analyse du transcriptome suggère que Hsp22 joue un rôle dans la détermination de durée de vie en changeant le processus général de vieillissement normal. Effectivement, les mouches surexprimant Hsp22 affichent une surexpression de gènes dont l’expression baisse normalement durant le vieillissement. Les gènes sont impliqués dans la production d'énergie, la biosynthèse des protéines, le taux de renouvellement des protéines et le métabolisme lipidique. L'analyse du protéome mitochondrial soutient aussi un rôle de Hsp22 sur la détermination de la durée de vie en maintenant la fonction mitochondriale et en favorisant la protéolyse. Les présentes données suggèrent l'importance de la maintenance de l’homéostasie protéique durant le vieillissement et discutent des mécanismes potentiels d’extension de la longévitié chez les mouches surexprimant Hsp22.Aging is a complex process accompanied by a decreased capacity of cells to tolerate and respond to various forms of stresses leading to damages such as protein aggregation in various components of the cell. Chaperones are thus likely important players in the aging process by preventing protein denaturation and aggregation. In Drosophila melanogaster, a small heat shock protein Hsp22 localized in the mitochondrial matrix is preferentially up-regulated during aging. Its over-expression results in an extension of lifespan and an increased resistance to stress. Although Hsp22 has been shown to have a chaperone-like activity in vitro, the mechanisms by which it extends lifespan in vivo are still unknown. Genome-wide transcriptional analysis by microarray and comparative mitochondrial proteomic analysis by MALDI-TOF mass analysis have been performed to unveil differences in long-lived Hsp22 over-expressing flies and normal-lived control flies. Ubiquitous over-expression of Hsp22 using the GAL4/UAS system in Drosophila resulted in a ~ 30% increase in mean lifespan. The genomic analysis suggests that Hsp22 plays a role in lifespan determination by altering the regulation of the overall process of normal aging. Indeed, flies over-expressing Hsp22 display an up-regulation of genes normally down-regulated with age and involved in energy production, protein biosynthesis, protein turnover, and lipid metabolism. Mitochondrial proteomic analysis also supports a putative role of Hsp22 on lifespan determination by maintaining mitochondrial function and favoring proteolysis. The present data suggest the importance of the maintenance of protein homeostasis in aging and potential mechanisms of longevity in the Hsp22 over-expressing flies

Identifying the Distribution of Treatment Effects under Support Restrictions

The distribution of treatment effects (DTE) is often of interest in the context of welfare policy evaluation. In this paper, I consider partial identification of the DTE under known marginal distributions and support restrictions on the potential outcomes. Examples of such support restrictions include monotone treatment response, concave treatment response, convex treatment response, and the Roy model of self-selection. To establish informative bounds on the DTE, I formulate the problem as an optimal transportation linear program and develop a new dual representation to characterize the identification region with respect to the known marginal distributions. I use this result to derive informative bounds for concrete economic examples. I also propose an estimation procedure and illustrate the usefulness of my approach in the context of an empirical analysis of the effects of smoking on infant birth weight. The empirical results show that monotone treatment response has a substantial identifying power for the DTE when the marginal distributions of the potential outcomes are given