Offshore Financial Havens: Their Role in International Capital Flows

The purpose of this paper is to study the role of offshore financial havens in international capital flows. We examine the effects of being a tax haven, a money laundering centre or an offshore financial centre (OFC), which often overlap. We want to see whether these places are used as entrepots (which means temporary storage for funds) or as investment places or both. We mainly use two complementary data sets: bilateral cross-border asset holding and financial intermediation. One is a stock variable and the other one is a flow variable. We apply the gravity model to bilateral cross-border asset holding between 223 host countries and 67 source countries from Coordinated Portfolio Investment Survey (CPIS). We find that tax havens and OFCs attract more asset investment while money laundering centers scare potential investors away. We then use the flow variable of financial intermediation from UNdatabase and find value of financial intermediation is higher in OFCs and lower in money laundering centers. There is no significant relationship between tax haven and financial intermediation. Our results show that the role of offshore havens in facilitating illegal activities like tax evasion and money laundering is overstated in the previous studies. By allowing parameter shifting in the model, we also find the competitive advantages of offshore finance in facilitating tax avoidance or evasion and money laundering have been eroded due to recent years' global action against tax evasion and money laundering

Planning and Design Soa Architecture Blueprint

Service Oriented Architecture (SOA) is a framework for integrating business processes and supporting IT infrastructure as secure, standardized components-services-that can be reused and combined to address changing business priorities. Services are the building blocks of SOA and new applications can be constructed through consuming these services and orchestrating services within a business process. In SOA, services map to the business functions that are identified during business process analysis. Upon a successful implementation of SOA, the enterprise gain benefit by reducing development time, utilizing flexible and responsive application structure, and following dynamic connectivity of application logics between business partners. This paper presents SOA reference architecture blueprint as the building blocks of SOA which is services, service components and flows that together support enterprise business processes and the business goals

The Timing of Broadband Provision: The Role of Competition and Demographics

We examine the supply of DSL broadband by the incumbent local exchange company (LEC) in five U.S. states in the earlier years of deployment. Our empirical analysis shows that income, other demographics, and cost factors are important determinants of entry and availability, and thus, the supply side of the digital divide. After controlling for other factors, the racial characteristics of the area do not affect DSL provision. Demand-side factors explain possible redlining in the region studied, and there is no need for policies aimed at overcoming discrimination on the part of the provider. Our objective in gauging the importance of the various factors is to highlight the important drivers of broadband provision for policy makers. We conclude that policies to accelerate the narrowing of the broadband digital divide must either focus on the demand side of the market or increase the firms' profitability of entering less desirable areas.

Towards Developing a Travel Time Forecasting Model for Location-Based Services: a Review

Travel time forecasting models have been studied intensively as a subject of Intelligent Transportation Systems (ITS), particularly in the topics of advanced traffic management systems (ATMS), advanced traveler information systems (ATIS), and commercial vehicle operations (CVO). While the concept of travel time forecasting is relatively simple, it involves a notably complicated task of implementing even a simple model. Thus, existing forecasting models are diverse in their original formulations, including mathematical optimizations, computer simulations, statistics, and artificial intelligence. A comprehensive literature review, therefore, would assist in formulating a more reliable travel time forecasting model. On the other hand, geographic information systems (GIS) technologies primarily provide the capability of spatial and network database management, as well as technology management. Thus, GIS could support travel time forecasting in various ways by providing useful functions to both the managers in transportation management and information centers (TMICs) and the external users. Thus, in developing a travel time forecasting model, GIS could play important roles in the management of real-time and historical traffic data, the integration of multiple subsystems, and the assistance of information management. The purpose of this paper is to review various models and technologies that have been used for developing a travel time forecasting model with geographic information systems (GIS) technologies. Reviewed forecasting models in this paper include historical profile approaches, time series models, nonparametric regression models, traffic simulations, dynamic traffic assignment models, and neural networks. The potential roles and functions of GIS in travel time forecasting are also discussed.

Has Government Tax Policy in Greece Led to a Large Shadow Economy?

This capstone investigates the impact that tax policy has on the shadow economy in Greece. Greece has one of the largest shadow economies in the world and the largest in the European Union, with tax evasion being one of the main drivers. While previous research has provided measures of the shadow economy, none matches the shadow economy estimations with policies, laws, and agencies enacted by the government, specifically over the period in time of 1990-2012. This study contributes to the literature by connecting the policies implemented by the government with the size of the shadow economy in Greece, along with providing a new model based on prior versions of the currency-demand model. The study concludes by considering, a piece of cultural analysis to help explain why the people of Greece are so prone to evade taxes and enter the shadow economy. Research of Dr. Geert Hofstede’s work on cultural dimensions shows that Greeks have high levels of power-distance, collectivism, and uncertainty avoidance, all which can be used to explain why they are susceptible to keep evading taxes. Using an adaption of the currency demand model, the regression results show that the shadow economy increased with 1) an increase in the amount of people that are self-employed 2) decreases to the middle income tax rate 3) and with increases in the lowest income tax rate. These results suggest that the tax system needs a combination of stronger oversight and penalties because of the extremely high levels of uncertainty avoidance that Greeks possess. The results also show that revenue can be captured by raising the middle income tax rate, and that raising the tax rate on the lowest bracket will tend to force those people into the shadow economy. This study provides useful conclusions on the Greek shadow economy from both an economic perspective and a sociological perspectiv

The dynamics of dependent employment and unemployment: A comparison of different data sources

The dynamics of dependent employment and unemployment can only be adequately analysed using individual flow data. The degree of influence of the data set and the methodology used is shown by analysing 11 member states of the European Union on the basis of data from the European Labour Force Survey (ELFS) and the European Community Household Panel (ECHP). In addition to the analysis of flows and their counterflows, new labour market indicators are introduced: the dependent employment (growth) indicator, the general mobility rate, the (re)integration indicator and the (un)employment mobility rate. -- Die Dynamik von abhängiger Beschäftigung und Arbeitslosigkeit kann nur mit individuellen Stromdaten ausreichend analysiert werden. Welchen Einfluß dabei der gewählte Datensatz und die gewählte Methodologie haben, wird durch eine vergleichende Analyse von 11 Mitgliedsstaaten der Europäischen Union mit Daten der Europäische Arbeitskräftestichprobe (ELFS) und Daten des Europäischen Haushaltspanels herausgearbeitet. Neben der Analyse einzelner Ströme und ihrer Gegenströme werden neue Arbeitsmarktindikatoren vorgestellt: der Beschäftigungs-(Wachstums-)Indikator, die Generelle Mobilitätsrate, der (Re-)Integrationsindikator und die Arbeits-(losigkeits-)Mobilit ätsrate.

New ITS applications for metropolitan areas based on Floating Car Data

The paper describes a couple of FCD based vehicular traffic applications and services. This new method is especially beneficial for regions with a poor traffic monitoring infrastructure because the necessary monetary effort to establish such a system is very small in comparison to conventional systems and it is flexible and easily adaptable to other regions. Particularly, emerging markets like China with a fast-changing road network and a high penetration of lat-est information technologies on one side but with serious foreseeable traffic related problems on the other side can surely profit from this approach. The new data collection and analysing methods result in better performance of the services enhance the scope of the services and hopefully enlarge user acceptance. All of the proposed solutions are prototypes and not all of them have been extensively tested up to now. Certainly, specific data processing methods need further research, some refinements and calibrations. Additionally, some applications still suffer from insufficient data penetration. Nevertheless, the approach is very general and it is very likely that FCD availability will sharply increase in near future and will enhance the quality of services