Preparation, Characterization and NO-CO Redox Reaction Studies over Palladium and Rhodium Oxides Supported on Manganese Dioxide

The catalytic activity of PdO/MnO2 and Rh2O3/MnO2 is investigated for NO-CO redox reaction. Supported catalysts are prepared by wet impregnation method. Among the tested catalysts, PdO/MnO2 shows higher activity for this reaction. Active metal dispersion on MnO2 enhances the selectivity for N2 over N2O in this reaction. The XRD substantiate the formation of MnO2 monophasic phase. SEM images show the formation of elongated particles. TEM images indicate nano-size rod-like morphologies. An increase in the catalytic activity is observed on supported Pd and Rh oxides on MnO2. Temperature programed desorption studies with NO and CO are undertaken to investigate the catalytic surface studies. © 2015 BCREC UNDIP. All rights reserve

Expectations and Expatriations: Tracing the Causes and Consequences of Corporate Inversions

This paper investigates the determinants of corporate expatriations. American corporations that seek to avoid U.S. taxes on their foreign incomes can do so by becoming foreign corporations, typically by 'inverting' the corporate structure, so that the foreign subsidiary becomes the parent company and U.S. parent company becomes a subsidiary. Three types of evidence are considered in order to understand this rapidly growing practice. First, an analysis of the market reaction to Stanley Works's expatriation decision implies that market participants expect its foreign inversion to be accompanied by a reduction in tax liabilities on U.S. source income, since savings associated with the taxation of foreign income alone cannot account for the changed valuations. Second, statistical evidence indicates that large firms, those with extensive foreign assets, and those with considerable debt are the most likely to expatriate - suggesting that U.S. taxation of foreign income, including the interest expense allocation rules, significantly affect inversions. Third, share prices rise by an average of 1.7 percent in response to expatriation announcements. Ten percent higher leverage ratios are associated with 0.7 percent greater market reactions to expatriations, reflecting the benefit of avoiding the U.S. rules concerning interest expense allocation. Shares of inverting companies typically stand at only 88 percent of their average values of the previous year, and every ten percent of prior share price appreciation is associated with 1.1 percent greater market reaction to an inversion announcement. Taken together, these patterns suggest that managers maximize shareholder wealth rather than share prices, avoiding expatriations unless future tax savings - including reduced costs of repatriation taxes and expense allocation, and the benefits of enhanced worldwide tax planning opportunities - more than compensate for current capital gains tax liabilities.

Foreign Direct Investment in a World of Multiple Taxes

While governments have multiple tax instruments available to them, studies of the effect of tax policy on the locational decisions of multinationals typically focus exclusively on host country corporate income tax rates and their interaction with home country tax rules. This paper examines the impact of indirect (non-income) taxes on the location and character of foreign direct investment by American multinational firms. Indirect tax burdens significantly exceed foreign income tax obligations for these firms and appear to influence strongly their behavior. The influence of indirect taxes is shown to be partly attributable to the inability of American investors to claim foreign tax credits for indirect tax payments. Estimates imply that 10 percent higher indirect tax rates are associated with 9.2 percent lower reported income of American affiliates and 8.6 percent lower capital/labor ratios. These estimates carry implications for efficient tradeoffs between direct and indirect taxation in raising revenue while attracting mobile capital.

Economic Effects of Regional Tax Havens

How does the opportunity to use tax havens influence economic activity in nearby non-haven countries? Analysis of affiliate-level data indicates that American multinational firms use tax haven affiliates to reallocate taxable income away from high-tax jurisdictions and to defer home country taxes on foreign income. Ownership of tax haven affiliates is associated with reduced tax payments by nearby non-haven affiliates, the size of the effect being equivalent to a 20.8 percent tax rate reduction. The evidence also indicates that use of tax havens indirectly stimulates the growth of operations in non-haven countries in the same region. A one percent greater likelihood of establishing a tax haven affiliate is associated with 0.5 to 0.7 percent greater sales and investment growth by non-haven affiliates, implying a complementary relationship between haven and non-haven activity. The ability to avoid taxes by using tax haven affiliates therefore appears to facilitate economic activity in non-haven countries within regions.

Calculation of geometric phases in electric dipole searches with trapped spin-1/2 particles based on direct solution of the Schr\"odinger equation

Pendlebury $\textit{et al.}$ [Phys. Rev. A $\textbf{70}$, 032102 (2004)] were the first to investigate the role of geometric phases in searches for an electric dipole moment (EDM) of elementary particles based on Ramsey-separated oscillatory field magnetic resonance with trapped ultracold neutrons and comagnetometer atoms. Their work was based on the Bloch equation and later work using the density matrix corroborated the results and extended the scope to describe the dynamics of spins in general fields and in bounded geometries. We solve the Schr\"odinger equation directly for cylindrical trap geometry and obtain a full description of EDM-relevant spin behavior in general fields, including the short-time transients and vertical spin oscillation in the entire range of particle velocities. We apply this method to general macroscopic fields and to the field of a microscopic magnetic dipole.Comment: 11 pages, 4 figure

Quantifying the effects of harvesting on carbon fluxes and stocks in northern temperate forests

Harvest disturbance has substantial impacts on forest carbon (C) fluxes and stocks. The quantification of these effects is essential for the better understanding of forest C dynamics and informing forest management in the context of global change. We used a process-based forest ecosystem model, PnET-CN, to evaluate how, and by what mechanisms, clear-cuts alter ecosystem C fluxes, aboveground C stocks (AGC), and leaf area index (LAI) in northern temperate forests. We compared C fluxes and stocks predicted by the model and observed at two chronosequences of eddy covariance flux sites for deciduous broadleaf forests (DBF) and evergreen needleleaf forests (ENF) in the Upper Midwest region of northern Wisconsin and Michigan, USA. The average normalized root mean square error (NRMSE) and the Willmott index of agreement (d) for carbon fluxes, LAI, and AGC in the two chronosequences were 20% and 0.90, respectively. Simulated gross primary productivity (GPP) increased with stand age, reaching a maximum (1200–1500 g C m−2 yr−1) at 11–30 years of age, and leveled off thereafter (900–1000 g C m−2 yr−1). Simulated ecosystem respiration (ER) for both plant functional types (PFTs) was initially as high as 700–1000 g C m−2 yr−1 in the first or second year after harvesting, decreased with age (400–800 g C m−2 yr−1) before canopy closure at 10–25 years of age, and increased to 800–900 g C m−2 yr−1 with stand development after canopy recovery. Simulated net ecosystem productivity (NEP) for both PFTs was initially negative, with net C losses of 400–700 g C m−2 yr−1 for 6–17 years after clear-cuts, reaching peak values of 400–600 g C m−2 yr−1 at 14–29 years of age, and eventually stabilizing in mature forests (\u3e 60 years old), with a weak C sink (100–200 g C m−2 yr−1). The decline of NEP with age was caused by the relative flattening of GPP and gradual increase of ER. ENF recovered more slowly from a net C source to a net sink, and lost more C than DBF. This suggests that in general ENF may be slower to recover to full C assimilation capacity after stand-replacing harvests, arising from the slower development of photosynthesis with stand age. Our model results indicated that increased harvesting intensity would delay the recovery of NEP after clear-cuts, but this had little effect on C dynamics during late succession. Future modeling studies of disturbance effects will benefit from the incorporation of forest population dynamics (e.g., regeneration and mortality) and relationships between age-related model parameters and state variables (e.g., LAI) into the model

Chains of Ownership, Regional Tax Competition, and Foreign Direct Investment

This paper considers the effect of taxation on the location of foreign direct investment (FDI) and taxable income reported by multinational firms with particular attention to the regional dynamics of tax competition and the role of chains of ownership. Confidential affiliate-level data are used to compare the investment and income-reporting behavior of American-owned foreign affiliates across ownership forms and regions. Ten percent higher tax rates are associated with 5.0 percent lower FDI, controlling for parent company and observable aspects of local economies, and 0.9 percent lower returns on assets, controlling for parent company and level of FDI. Tax effects are particularly strong within Europe, where ten percent higher tax rates are associated with 7.7 percent lower FDI and 1.7 percent lower returns on assets. Indirectly owned foreign affiliates also exhibit strong tax effects, ten percent higher tax rates being associated with 12.0 percent lower FDI and 1.4 percent lower returns on assets. American firms finance a growing fraction of their foreign operations indirectly through chains of ownership, which now account for more than 30 percent of aggregate foreign assets and sales. Ownership chains are particularly concentrated among European affiliates. Since multinational firms from countries other than the United States face tax environments similar to those faced by indirectly owned affiliates of American companies, these results suggest a greater sensitivity of FDI to taxes for non-American firms. The results also suggest that European economic integration may have the effect of intensifying tax competition between European jurisdictions.

A Multinational Perspective on Capital Structure Choice and Internal Capital Markets

This paper examines the impact of local tax rates and capital market conditions on the level and composition of borrowing by foreign affiliates of American multinational corporations. The evidence indicates that 10 percent higher local tax rates are associated with 2.8 percent higher debt/asset ratios of American-owned affiliates, and that borrowing from related parties is particularly sensitive to tax rates. Borrowing by American affiliates responds to local inflation and political risks, and is more costly in countries with underdeveloped capital markets and those providing weak legal protections for creditors. Affiliates in environments where external borrowing is costly borrow less from unrelated parties: one percent higher interest rates are associated with 1.4 to 2.0 percent less external debt as a fraction of assets. Instrumental variables analysis reveals that affiliates substitute loans from parent companies for between half and three quarters of the reduced borrowing from unrelated parties stemming from adverse local capital market conditions. These patterns suggest that multinational firms are able to structure their finances in response to tax and capital market conditions, thereby creating opportunities not available to many of their local competitors.

Capital Structure with Risky Foreign Investment

American multinational firms respond to politically risky environments by adjusting their capital structures abroad and at home. Foreign subsidiaries located in politically risky countries have significantly more debt than do other foreign affiliates of the same parent companies. American firms further limit their equity exposures in politically risky countries by sharing ownership with local partners and by serving foreign markets with exports rather than local production. The residual political risk borne by parent companies leads them to use less domestic leverage, resulting in lower firm-wide leverage. Multinational firms with above-average exposures to politically risky countries have 8.4 percent less domestic leverage than do other firms. These findings illustrate the impact of risk exposures on capital structure.