A Price-Based Royalty Tax?

transfer pricing; extractive industries; natural resource taxation; royalties; resource rent tax.This paper considers the merits of a price-based royalty, a royalty for which the rate varies with the product price, as a fiscal instrument for taxing extractive industries. In light of the literature on natural resources taxation, the case for a price-based royalty is appealing. A price-based royalty captures some of the desirable attributes of an income or resource rent tax, but in comparison to such taxes, it is easier to administer since revenue is much less sensitive to transfer price manipulation and tax avoidance efforts. In order to explore how a price-based royalty might provide some of the advantages of income- or rent-based taxation, the paper analyses the relationship between product prices and firm profits, using a dataset of the world’s largest extractive firms from the Forbes Global 2000 list during the period 2003-2014. This analysis indicates that, for both oil/gas and mining firms, there is a nearly one-to-one relationship between product prices and firm profitability; prices 1 per cent higher tend to be associated with profits about 0.76 per cent higher for oil/gas firms and about 1.38 per cent higher for mining firms. The paper concludes by recommending that tax policymakers give serious consideration to increasing the use of price-based royalties.DfID, NORAD

Program for computing partial pressures from residual gas analyzer data

A computer program for determining the partial pressures of various gases from residual-gas-analyzer data is given. The analysis of the ion currents of 18 m/e spectrometer peaks allows the determination of 12 gases simultaneously. Comparison is made to ion-gage readings along with certain other control information. The output data are presented in both tabular and graphical form

A continuous source of translationally cold dipolar molecules

The Stark interaction of polar molecules with an inhomogeneous electric field is exploited to select slow molecules from a room-temperature reservoir and guide them into an ultrahigh vacuum chamber. A linear electrostatic quadrupole with a curved section selects molecules with small transverse and longitudinal velocities. The source is tested with formaldehyde (H2CO) and deuterated ammonia (ND3). With H2CO a continuous flux is measured of approximately 10^9/s and a longitudinal temperature of a few K. The data are compared with the result of a Monte Carlo simulation.Comment: 4 pages, 4 figures v2: small changes in the abstract, text and references. Figures 1 & 2 regenerated to prevent errors in the pd

Insights into the Second Law of Thermodynamics from Anisotropic Gas-Surface Interactions

Thermodynamic implications of anisotropic gas-surface interactions in a closed molecular flow cavity are examined. Anisotropy at the microscopic scale, such as might be caused by reduced-dimensionality surfaces, is shown to lead to reversibility at the macroscopic scale. The possibility of a self-sustaining nonequilibrium stationary state induced by surface anisotropy is demonstrated that simultaneously satisfies flux balance, conservation of momentum, and conservation of energy. Conversely, it is also shown that the second law of thermodynamics prohibits anisotropic gas-surface interactions in "equilibrium", even for reduced dimensionality surfaces. This is particularly startling because reduced dimensionality surfaces are known to exhibit a plethora of anisotropic properties. That gas-surface interactions would be excluded from these anisotropic properties is completely counterintuitive from a causality perspective. These results provide intriguing insights into the second law of thermodynamics and its relation to gas-surface interaction physics.Comment: 28 pages, 11 figure

The New Politics of Global Tax Governance: Taking Stock a Decade After the Financial Crisis

The financial crisis of 2007–2009 is now broadly recognised as a once-in-a-generation inflection point in the history of global economic governance. It has also prompted a reconsideration of established paradigms in international political economy (IPE) scholarship. Developments in global tax governance open a window onto these ongoing changes, and in this essay we discuss four recent volumes on the topic drawn from IPE and beyond, arguing against an emphasis on institutional stability and analyses that consider taxation in isolation. In contrast, we identify unprecedented changes in tax cooperation that reflect a significant contemporary reconfiguration of the politics of global economic governance writ large. To develop these arguments, we discuss the links between global tax governance and four fundamental changes underway in IPE: the return of the state through more activist policies; the global power shift towards large emerging markets; the politics of austerity and populism; and the digitalisation of the economy

Central banking and inequalities: taking off the blinders

What is the relation between monetary policy and inequalities in income and wealth? This question has received insufficient attention, especially in light of the unconventional policies introduced since the 2008 financial crisis. The article analyzes three ways in which the concern central banks show for inequalities in their official statements remains incomplete and underdeveloped. First, central banks tend to care about inequality for instrumental reasons only. When they do assign intrinsic value to containing inequalities, they shy away from trade-offs with the standard objectives of monetary policy that such a position entails. Second, central banks play down the causal impact monetary policy has on inequalities. When they do acknowledge it, they defend their actions by claiming that it is an unintended side effect, that it is temporary, and/or that any alternative policy would fare even worse. The article appeals to the doctrine of double effect to criticize these arguments. Third, even if one accepts that inequalities should be contained and that today’s monetary policies exacerbate them, is it both desirable and feasible to make containing inequalities part of the mandate of central banks? The article analyzes and rejects three attempts on the part of central banks to answer this question negatively

Fiscal Resources for Inclusive Growth

This paper develops a framework to assess the growth and distribution effects of fiscal resources. Resources are classified as debt, other capital receipts, foreign aid and other unilateral grants, non-tax revenue, including resource rents, seigniorage, and taxes. The framework is used to assess the fiscal resource bases of economies in developing Asia to the extent permitted by available data. Although there is great diversity in the amount of resources raised in terms of the importance of different revenue sources and in the sophistication of revenue administrations, the analysis suggests that in order to expand their relatively low fiscal resource bases, developing Asian economies need to pay greater attention to non-tax revenue and to taxes other than broad-based taxes on income and consumption, such as property taxes and corrective taxes