Capital Controls and Foreign Investor Subsidies Implicit in South Africa's Dual Exchange Rate System

Both in theory and practice, capital controls and dual exchange rate systems can be part of a country's optimal tax policy. We first show how a dual exchange rate system can be interpreted as a tax (or subsidy) on international capital income. We show that a dual exchange rate system, with separate commercial and financial exchange rates, drives a wedge between the domestic and foreign returns on comparable assets. As a borrower, the government itself is a direct beneficiary. Secondly, based on data from South Africa, we present empirical evidence of this revenue implicit in a dual exchange rate system; a revenue that amounted to as much as 0.1 percent of GDP for the South African government. However, this paper also shows that both the capital controls and the dual exchange rate system in South Africa gave rise to many perverse unanticipated e¤ects. The latter may render capital controls and dual exchange rate systems unattractive in the end and, thereby, provides a rationale for the recent trend in exchange rate liberalization and unification.Dual exchange rate systems;capital controls;emerging markets;financial repression;optimal tax policy

The Dependence of Galaxy Shape on Luminosity and Surface Brightness Profile

For a sample of 96,951 galaxies from the Sloan Digital Sky Survey Data Release 3, we study the distribution of apparent axis ratios as a function of r-band absolute magnitude and surface brightness profile type. We use the parameter fracDeV to quantify the profile type (fracDeV = 1 for a de Vaucouleurs profile; fracDeV = 0 for an exponential profile). When the apparent axis ratio q_{am} is estimated from the moments of the light distribution, the roundest galaxies are very bright (M_r \sim -23) de Vaucouleurs galaxies and the flattest are modestly bright (M_r \sim -18) exponential galaxies. When the apparent axis ratio q_{25} is estimated from the axis ratio of the 25 mag/arcsec^2 isophote, we find that de Vaucouleurs galaxies are flatter than exponential galaxies of the same absolute magnitude. For a given surface brightness profile type, very bright galaxies are rounder, on average, than fainter galaxies. We deconvolve the distributions of apparent axis ratios to find the distribution of the intrinsic short-to-long axis ratio gamma, assuming constant triaxiality T. For all profile types and luminosities, the distribution of apparent axis ratios is inconsistent with a population of oblate spheroids, but is usually consistent with a population of prolate spheroids. Bright galaxies with a de Vaucouleurs profile (M_r < -21.84, fracDeV > 0.9) have a distribution of q_{am} that is consistent with triaxiality in the range 0.4 < T < 0.8, with mean intrinsic axis ratio 0.66 < gamma < 0.69. The fainter de Vaucouleurs galaxies are best fit with prolate spheroids (T = 1) with mean axis ratio gamma = 0.51.Comment: 32 pages, 12 figures, to appear in Ap

Intestinal colonization due to Escherichia coli ST131: Risk factors and prevalence

Background Escherichia coli sequence type 131 (ST131) is a successful clonal group that has dramatically spread during the last decades and is considered an important driver for the rapid increase of quinolone resistance in E. coli. Methods Risk factors for rectal colonization by ST131 Escherichia coli (irrespective of ESBL production) were investigated in 64 household members (18 were colonized) and 54 hospital contacts (HC; 10 colonized) of 34 and 30 index patients with community and nosocomial infection due to these organisms, respectively, using multilevel analysis with a p limit of < 0.1. Result Colonization among household members was associated with the use of proton-pump inhibitors (PPI) by the household member (OR = 3.08; 95% CI: 0.88–10.8) and higher age of index patients (OR = 1.05; 95% CI; 1.01–1.10), and among HC, with being bed-ridden (OR = 21.1; 95% CI: 3.61–160.0) and having a urinary catheter (OR = 8.4; 95% CI: 0.87–76.9). Conclusion Use of PPI and variables associated with higher need of person-to-person contact are associated with increased risk of rectal colonization by ST131. These results should be considered for infection control purposes.Plan Nacional de I + D + i 2013-2016Ministerio de Economía y Competitividad (España)European Development Regional Fund REIPI RD12/0015/0010 REIPI RD16/0016/0001Instituto de Salud Carlos III 070190 AC16/000076-MODERN AC16/AC16/00072-ST131TSJunta de Andalucía CTS5259 CTS21

The Ellipticity of the Disks of Spiral Galaxies

The disks of spiral galaxies are generally elliptical rather than circular. The distribution of ellipticities can be fit with a log-normal distribution. For a sample of 12,764 galaxies from the Sloan Digital Sky Survey Data Release 1 (SDSS DR1), the distribution of apparent axis ratios in the i band is best fit by a log-normal distribution of intrinsic ellipticities with ln epsilon = -1.85 +/- 0.89. For a sample of nearly face-on spiral galaxies, analyzed by Andersen and Bershady using both photometric and spectroscopic data, the best fitting distribution of ellipticities has ln epsilon = -2.29 +/- 1.04. Given the small size of the Andersen-Bershady sample, the two distribution are not necessarily inconsistent. If the ellipticity of the potential were equal to that of the light distribution of the SDSS DR1 galaxies, it would produce 1.0 magnitudes of scatter in the Tully-Fisher relation, greater than is observed. The Andersen-Bershady results, however, are consistent with a scatter as small as 0.25 magnitudes in the Tully-Fisher relation.Comment: 19 pages, 5 figures; ApJ, accepte

The Effects of God Language on Perceived Attributes of God

Sixty-three participants listened to an audio· tape asking them to imagine themselves in God\u27s presence. Half the participants listened to a script in which God was presented as female and half listened to a script in which God was presented as male. Half of those in each group listened to a male narrator and the other half listened to a female narrator. Before and after listening to the script, participants rated the attributes of God on a forced-choice questionnaire. Those to whom God was presented as female were more likely to emphasize God\u27s mercy at posttest whereas those to whom God was presented as male were more likely to endorse God\u27s power. Those hearing a male voice describe a female God and those hearing a female voice describe a male God reported enjoying the experiment and the audiotape more than those hearing a narrator describing a God of the same gender. Implications are discussed

Testing The Autocorrelation Structure of Disturbances in Ordinary Least Squares and Instrumental Variables Regressions

This paper derives the asymptotic distribution for a vector of sample autocorrelations of regression residuals from a quite general linear model. The asymptotic distribution forms the basis for a test of the null hypothesis that the regression error follows a moving average of order q [greaterthan or equal] 0 against the general alternative that autocorrelations of the regression error are non-zero at lags greater than q. By allowing for endogenous, predetermined and/or exogenous regressors, for estimation by either ordinary least squares or a number of instrumental variables techniques, for the case q>0, and for a conditionally heteroscedastic error term, the test described here is applicable in a variety of situations where such popular tests as the Box-Pierce (1970) test, Durbin's (1970) h test, and Godfrey's (1978b) Lagrange multiplier test are net applicable. The finite sample properties of the test are examined in Monte Carlo simulations where, with a sample sizes of 50 and 100 observations, the test appears to be quite reliable.

The Predictability of Real Exchange Rate Changes in the Short and Long Run

Nominal exchange rates do not move to offset differences in inflation rates on a month to month, quarter to quarter, or even year to year basis, resulting in sizable real exchange rate changes. Are these changes predictable? We address this question in three ways. First, we describe a variety of tests of predictability and explain how the different tests are related. Next, we implement the tests for the U.S. dollar relative to four currencies and find statistically significant evidence that real exchange rate changes are predictable. Finally, we examine whether the predictability is of an economically interesting magnitude.