Capturing Economic Rents From Resources Through Royalties and Taxes

Oil price fluctuations, concerns over the division of resource revenues, and unconventional oil and gas developments are forcing governments to confront the same issue: how to design optimal royalty and corporate tax systems that bring in a publicly acceptable share of revenues without discouraging private investment. This paper surveys tax and royalty systems across six countries, as well as four US states and five Canadian provinces, offering concise analyses of their strengths and shortcomings to describe the best and simplest approaches to both. As in a public-private partnership, government owns the resources and allows private agents to maximize the rents resources generate. An optimal royalty system will thus be rent-based, ensuring that both owner and agent obtain maximally competitive returns so that each has incentives to continue the partnership. Such a system will also be simple, making compliance easy, manipulation difficult, and risks affordable. And it will be stable, instilling in the private sector the confidence needed to invest for the long term. As for corporate income taxes, they should be neutral across business activities, and applied at equal effective rates on economic income, to avoid distorting market forces through subsidies or needless complexity. A clean rent-based tax that allows all costs incurred by producers to be expensed or carried over, along with a corporate income tax system shorn of many of the preferences that negatively affect business activity, should be the way forward for any government looking to update their fiscal regimes for the 21st century

The determinants of IPO firm prospectus length in Africa

This paper studies the differential impact on IPO firm listing prospectus length from increasing proportions of foreign directors from civil as opposed to common law societies and social elites. Using a unique hand-collected and comprehensive sample of 165 IPO firms from across 18 African countries the evidence suggests that increasing proportions of directors from civil code law countries is associated with shorter prospectuses while the opposite is true for their common law counterparts. Furthermore increasing proportions of directors drawn from elevated social positions in indigenous society is related to increasing prospectus length in North Africa while being insignificant in SSA

The effects of aging of scientists on their publication and citation patterns

The average age at which U.S. researchers get their first grant from NIH has increased from 34.3 in 1970, to 41.7 in 2004. These data raise the crucial question of the effects of aging on the scientific creativity and productivity of researchers. Those who worry about the aging of scientists usually believe that the younger they are the more creative and productive they will be. Using a large population of 13,680 university professors in Quebec, we show that, while scientific productivity rises sharply between 28 and 40, it increases at a slower pace between 41 and 50 and stabilizes afterward until retirement for the most active researchers. The average scientific impact per paper decreases linearly until 50-55 years old, but the average number of papers in highly cited journals and among highly cited papers rises continuously until retirement. Our results clearly show for the first time the natural history of the scientific productivity of scientists over their entire career and bring to light the fact that researchers over 55 still contribute significantly to the scientific community by producing high impact papers.Comment: 12 pages, 4 figure

The new Victorians? Celebrity charity and the demise of the welfare state

This article asks whether the expansion of celebrity involvement in charitable and humanitarian issues in Northern Europe and the US might be a comparable historical phenomenon with the philanthropic endeavours of prominent nineteenth-century persons. The article notes that the conspicuous nature of star philanthropy in both Victorian times and the present is fairly dramatic in comparison with that of the mid twentieth century, when the welfare state and the New Deal were at their peak: a welfare-oriented era which, to some, now increasingly looks like a ‘historical blip’. It asks whether the rise of contemporary celebrity involvement in charity can therefore be explained in terms of the contemporary political conjuncture, inasmuch as celebrities could be understood as individuals with large amounts of private capital seeking to intervene in – and gain forms of power through – involvement in humanitarian and charitable causes that might have formerly been the job of the state. Can celebrity involvement in charity be explained in these terms? Does the marriage of celebrity and charity today take a neoliberal form, one that parallels the liberal form of nineteenth-century interventions, bequests and donations? What might the key differences between forms of spectacular ‘philanthrocapitalism’ in these eras (particularly the contemporary insistence on the confessional and intimate modes of address) reveal about its workings, its internal traditions and about the specificity of our own age? This article draws on contemporary media discourse, debate in the voluntary sector, historical scholarship and Foucault’s distinctions between liberalism and neoliberalism to argue that whereas ‘celanthropy’ in the Victorian period eventually came to contribute to the welfare state, today it is more involved in privatising and dismantling it