The Theory of Human Capital Revisited: On the Interaction of General and Specific Investments

Human capital theory distinguishes between training in general-usage and firm-specific skills. In his seminal work, Becker (1964) argues that employers will not be willing to invest in general training when labor markets are competitive. However, they are willing to invest in specific training because it cannot be transferred to outside firms. The paper reconsiders Becker’s theory. We show that there exists an incentive complementarity between employersponsored general and specific investments: the possibility to provide specific training leads the employer to invest in general human capital. Conversely, the latter reduces the hold-up problem that arises with respect to the provision of firm-specific training. We also consider the virtues of long-term contracting and discuss some empirical observations that could be explained by the model.human capital formation, general and specific training, hold-up problem.

Redistribution, Fiscal Competition, and the Politics of Economic Integration

The paper examines the redistributive consequences of the economic integration of factor markets. We consider two countries that redistribute income among their residents. The social benefits in each country are financed by a source based tax on capital which is democratically chosen by its inhabitants. If either capital or labour is internationally mobile, the countries engage in fiscal competiton, i.e., the partial integration of capital or labour markets is detrimental to the countries' redistributive ability. A move from partial to full integration, however, may alleviate rather than intensify fiscal competition, particularly, if the two countries face sufficiently similar economic and political conditions. In such a situation, increased integration of labour markets will soften the incentives compete for mobile capital. As a result, there is more redistribution in equilibrium and a majority of the population in each country is strictly better off.

Federations, Constitutions, and Political Bargaining

The paper studies a world where a region provides essential inputs for the successful implementation of a local public policy project with spill-overs, and where bargaining between different levels of government may ensure efficient decision making ex post. We ask whether the authority over the public policy measure should rest with the local government or be centralized, allowing financial relationships within the federation to be designed optimally. We show that centralization is always dominant when governments are benevolent, and that both governance structures are otherwise inefficient as long as political bargaining is disregarded. With bargaining, however, the first best can often be achieved under decentralization, but not under centralization. At the root of the result is the alignment of decision making over both essential inputs and final project size under decentralization.Federalism, Constitutions, Decentralization, Grants, Political Bargaining.

The Theory of Human Capital Revisited: On the Interaction of General and Specific Investments

Human capital theory distinguishes between training in general-usage and firm-specific skills. In his seminal work, Becker (1964) argues that employers will not be willing to invest in general training when labor markets are competitive. However, they are willing to invest in specific training because it cannot be transferred to outside firms. The paper reconsiders Becker's theory. We show that there exists an incentive complementarity between employersponsored general and specific investments: the possibility to provide specific training leads the employer to invest in general human capital. Conversely, the latter reduces the hold-up problem that arises with respect to the provision of firm-specific training. We also consider the virtues of long-term contracting and discuss some empirical observations that could be explained by the model

Directional tuning of human motion adaptation as reflected by the motion VEP

AbstractMotion onset evoked visual potentials are dominated by a negativity (N2) at occipital electrodes and a positivity (P2) at the vertex. The degree of true motion processing reflected by N2 and P2 was estimated from the direction specificity of motion adaptation. Adapting stimuli moved to the right and test stimuli (random dot patterns of 26° diameter; 10% contrast; 10.5°/s velocity) moved in one of eight directions, which differed by 45°. VEPs were recorded from occipito/temporal and central sites in eight subjects. Two adaptation effects were observed for N2 (P<0.01): a global amplitude reduction by 47% and a direction-specific reduction by a further 28%. For P2, only the global effect (54%; P<0.01) was observed. The global adaptation effect could also be induced by pattern reversal and pattern-onset adaptation, i.e. stimuli containing ambiguous or very little motion energy, respectively. We conclude that at least 28% of the N2 amplitude reflects the activity of direction-specific elements, whereas P2 does not at all

High scale impact in alignment and decoupling in two-Higgs doublet models

The two-Higgs doublet model (2HDM) provides an excellent benchmark to study physics beyond the Standard Model (SM). In this work we discuss how the behaviour of the model at high energy scales causes it to have a scalar with properties very similar to those of the SM -- which means the 2HDM can be seen to naturally favor a decoupling or alignment limit. For a type II 2HDM, we show that requiring the model to be theoretically valid up to a scale of 1 TeV, by studying the renormalization group equations (RGE) of the parameters of the model, causes a significant reduction in the allowed magnitude of the quartic couplings. This, combined with $B$-physics bounds, forces the model to be naturally decoupled. As a consequence, any non-decoupling limits in type II, like the wrong-sign scenario, are excluded. On the contrary, even with the very constraining limits for the Higgs couplings from the LHC, the type I model can deviate substantially from alignment. An RGE analysis similar to that made for type II shows, however, that requiring a single scalar to be heavier than about 500 GeV would be sufficient for the model to be decoupled. Finally, we show that not only a 2HDM where the lightest of the CP-even scalars is the 125 GeV one does not require new physics to be stable up to the Planck scale but this is also true when the heavy CP-even Higgs is the 125 GeV and the theory has no decoupling limit for the type I model.Comment: 28 pages, 19 figure

Emergence of a Dynamic Super-Structural Order Integrating Antiferroelectric and Antiferrodistortive Competing Instabilities in EuTiO3

Microscopic structural instabilities of EuTiO3 single crystal were investigated by synchrotron x-ray diffraction. Antiferrodistortive (AFD) oxygen octahedral rotational order was observed alongside Ti derived antiferroelectric (AFE) distortions. The competition between the two instabilities is reconciled through a cooperatively modulated structure allowing both to coexist. The electric and magnetic field effect on the modulated AFD order shows that the origin of large magnetoelectric coupling is based upon the dynamic equilibrium between the AFD - antiferromagnetic interactions versus the electric polarization - ferromagnetic interactions

TINFORGE: Trade for the INterindustry FORecasting GErmany Model. Version 1.0

INFORGE (Interindustry Forecasting Germany) ist ein seit Anfang der 90er Jahre fortlaufend aktualisiertes und weiterentwickeltes makroökonometrisches Modell, das basierend auf den amtlichen Volkswirtschaftlichen Gesamtrechnungen (VGR) des Statistischen Bundesamtes (StBA) die wirtschaftliche Entwicklung Deutschlands abbildet. Das Modell ist vollständig dokumentiert (z.B. Meyer et al. 1999, Distelkamp et al. 2003, Ahlert et al. 2009) und wird in vielen Projekten verschiedener Auftraggeber (z.B. Deutscher Sparkassen- und Giroverband, Bundesministerium für Wirtschaft und Energie, Bundesagentur für Arbeit) eingesetzt. INFORGE bildet die komplexen ökonomischen Strukturen zwischen den Branchen und Marktteilnehmern ab und erlaubt somit eine detaillierte Beschreibung der Entwicklung des Wirtschaftswachstums nach Branchen und der Beschäftigung in Deutschland. Für nationale Modelle ist die Exportnachfrage für gewöhnlich eine exogen vorgegebene Größe. Da der Außenbeitrag für Deutschland – im Jahr 2012 lag er bei fast 160 Mrd. € – signifikant an Bedeutung gewonnen hat, sind damit auch die Anforderungen an INFORGE gewachsen, eine möglichst detaillierte Abbildung des Außenhandels zu integrieren. Entscheidend ist dabei die Dynamik des Welthandels insgesamt, aber auch nach Handelspartnern möglichst genau zu erfassen sowie den Weltmarktanteil Deutschlands an dieser Entwicklung abzubilden