Profit-Sharing as Tax Saving and Incentive Device

The theory of labor contract with worker’s chosen effort level mainly rests upon the principal-agent paradigm. In many labor markets however, the principal is not as free as assumed in the standard theory, but is submitted to some binding institutional constraints. It is requested in particular to post a wage level, i.e. a non random component of compensation to which high rates of social contribution may apply. The proposed model adapts the standard analysis to situations in which tax rules and possibly predetermined profit-sharing patterns interfere with free contracting. It formalizes the two-faced aspect of profit sharing having an impact on the firm’s objective through tax saving effect and incentive effect.Profit-sharing; Incentives; Tax evasion

Interdependent Consumer Choice and the Oval of Cassini

This paper follows a theory of Nicosia and Hibshoosh regarding the choice by social consumer unit who is facing conflicting institutional norms. The paper presents a duo-centric consumer residential choice model with special disutility function. The properties of the Oval of Cassini play a key role in the parstmonious modeling of this phenomenon and in the analysis. Specifically, we develop a residential consumer choice model where the consumer utility is affected by conflicted demands for activities of work and non-work institutions. The consumer unit is simultaneously attracted to two predetermined centers of work and non-work, while making its residence choice. We trace the consequences of these assumptions for optimal consumer choice of residential location, and for the size and price of property, level of a composite good, the level of identifies a preference for setting at the edges of a region along its main corridor in a two dimensional region. It also indicates a pattern of specifically directed curved regional growth in the periphery, with lesser development in the region\u27s center

A Unified Approach to the Estimation of Demand for Improved Seed in Developing Agriculture

This paper proposes a new approach for estimating the demand for seed within a developing country context where only improved seeds are sold but adoption rates for improved varieties low. A farmer views an improved seed firstly as a derived input embodying production attributes and secondly, as a technology embodying consumption characteristics. He therefore jointly decides on its adoption and the quantity of seed required to plant a predetermined area. Drawing on the theory of demand for consumption goods characteristics and production input attributes, this paper specified and estimated non-separable household demand and consumption models using data collected from 300 farm households in Zambia during the 2003/04 crop season. The estimated results suggest that adoption rate, distance to market, level of household grain self-sufficiency, seed hand-outs and household wealth are significant in determining farmers' seed purchase decisions. Appropriate intervention strategies for increased over-all improved seed demand are recommended. It is concluded that apart from contributing to the literature on modelling farm level seed demand, the model provides a holistic approach for the joint estimation of determinants of improved variety adoption and seed demand relevant for better targeting to increase the impacts of maize breeding research in developing countries.agricultural household model, consumer goods characteristics, production inputs, technology attributes, non-separability, censored equations, Zambia, Crop Production/Industries, C21, D1, O3, Q12, Q16,

Nonlinear Analysis of the 2nd Order Digital Phase Locked loop

This paper proposes a rigorous stability criterion for the 2nd order digital phase locked loop (DPLL),with a charge pump phase frequency detector (CP-PFD) component. The Stability boundary is determined using piecewise linear methods to model the non-linear nature of the CP-PFD component block. It calculates the control voltage, after a predetermined number of input reference signal sampling periods, to a small initial voltage offset. Using this piecewise linear model an exact closed form stability criterion is proposed for the second order system. The 2nd order stability boundaries, as defined by the proposed technique, are compared to that of existing linear theory stability boundaries, and display a significant improvement

Quantum Structures: An Attempt to Explain the Origin of their Appearance in Nature

We explain the quantum structure as due to the presence of two effects, (a) a real change of state of the entity under influence of the measurement and, (b) a lack of knowledge about a deeper deterministic reality of the measurement process. We present a quantum machine, where we can illustrate in a simple way how the quantum structure arises as a consequence of the two mentioned effects. We introduce a parameter epsilon that measures the size of the lack of knowledge on the measurement process, and by varying this parameter, we describe a continuous evolution from a quantum structure (maximal lack of knowledge) to a classical structure (zero lack of knowledge). We show that for intermediate values of epsilon we find a new type of structure, that is neither quantum nor classical. We apply the model that we have introduced to situations of lack of knowledge about the measurement process appearing in other regions of reality. More specifically we investigate the quantum-like structures that appear in the situation of psychological decision processes, where the subject is influenced during the testing, and forms some of his opinions during the testing process. Our conclusion is that in the light of this explanation, the quantum probabilities are epistemic and not ontological, which means that quantum mechanics is compatible with a determinism of the whole.Comment: 22 pages, 8 figure

Stability and Identification with Optimal Macroprudential Policy Rules

This paper investigates the identification, the determinacy and the stability of ad hoc, "quasi-optimal" and optimal policy rules augmented with financial stability indicators (such as asset prices deviations from their fundamental values) and minimizing the volatility of the policy interest rates, when the central bank precommits to financial stability. Firstly, ad hoc and quasi-optimal rules parameters of financial stability indicators cannot be identified. For those rules, non zero policy rule parameters of financial stability indicators are observationally equivalent to rule parameters set to zero in another rule, so that they are unable to inform monetary policy. Secondly, under controllability conditions, optimal policy rules parameters of financial stability indicators can all be identified, along with a bounded solution stabilizing an unstable economy as in Woodford (2003), with determinacy of the initial conditions of non- predetermined variables.Comment: 18 page