In Praise of Tax Havens: International Tax Planning and Foreign Direct Investment

The multinationalization of corporate investment in recent years has given rise to a number of international tax avoidance schemes that may be eroding tax revenues in industrialized countries, but which may also reduce tax burdens on mobile capital and so facilitate investment. Both the welfare effects of and the optimal response to international tax planning are therefore ambiguous. Evaluating these factors in a simple general equilibrium model, we find that citizens of high-tax countries benefit from (some) tax planning. Paradoxically, if tax rates are not too high, an increase in tax planning activity causes a rise in optimal corporate tax rates, and a decline in multinational investment. Thus fears of a “race to the bottom” in corporate tax rates may be misplaced.income shifting, tax planning, foreign direct investment, tax competition, thin capitalization

Off-shell hydrodynamics from holography

We outline a program for obtaining an action principle for dissipative fluid dynamics by considering the holographic Wilsonian renormalization group applied to systems with a gravity dual. As a first step, in this paper we restrict to systems with a non-dissipative horizon. By integrating out gapped degrees of freedom in the bulk gravitational system between an asymptotic boundary and a horizon, we are led to a formulation of hydrodynamics where the dynamical variables are not standard velocity and temperature fields, but the relative embedding of the boundary and horizon hypersurfaces. At zeroth order, this action reduces to that proposed by Dubovsky et al. as an off-shell formulation of ideal fluid dynamics.Comment: 34 pages, 2 figures; v2: references added, clarifications added in Sec. I

Does electronic coherence enhance anticorrelated pigment vibrations under realistic conditions?

The light-harvesting efficiency of a photoactive molecular complex is largely determined by the properties of its electronic quantum states. Those, in turn, are influenced by molecular vibrational states of the nuclear degrees of freedom. Here, we reexamine two recently formulated concepts that a coherent vibronic coupling between molecular states would either extend the electronic coherence lifetime or enhance the amplitude of the anticorrelated vibrational mode at longer times. For this, we study a vibronically coupled dimer and calculate the nonlinear two-dimensional (2D) electronic spectra which directly reveal electronic coherence. The timescale of electronic coherence is initially extracted by measuring the anti-diagonal bandwidth of the central peak in the 2D spectrum at zero waiting time. Based on the residual analysis, we identify small-amplitude long-lived oscillations in the cross-peaks, which, however, are solely due to groundstate vibrational coherence, regardless of having resonant or off-resonant conditions. Our studies neither show an enhancement of the electronic quantum coherence nor an enhancement of the anticorrelated vibrational mode by the vibronic coupling under ambient conditions

A note on color neutrality in NJL-type models

By referring to the underlying physics behind the color charge neutrality condition in quark matter, we discuss how this condition should be properly imposed in NJL-type models in a phenomenologically meaningful way. In particular, we show that the standard assumption regarding the use of two color chemical potentials, chosen in a very special way, is not justified in general. When used uncritically, such an approach leads to wrong or unphysical conclusions.Comment: 4 pages, no figure; v2: minor clarifications, references adde

An efficient tool to calculate two-dimensional optical spectra for photoactive molecular complexes

We combine the coherent modified Redfield theory (CMRT) with the equation of motion-phase matching approach (PMA) to calculate two-dimensional photon echo spectra for photoactive molecular complexes with an intermediate strength of the coupling to their environment. Both techniques are highly efficient, yet they involve approximations at different levels. By explicitly comparing with the numerically exact quasi-adiabatic path integral approach, we show for the Fenna-Matthews-Olson complex that the CMRT describes the decay rates in the population dynamics well, but final stationary populations and the oscillation frequencies differ slightly. In addition, we use the combined CMRT+PMA to calculate two-dimensional photon-echo spectra for a simple dimer model. We find excellent agreement with the exact path integral calculations at short waiting times where the dynamics is still coherent. For long waiting times, differences occur due to different final stationary states, specifically for strong system-bath coupling. For weak to intermediate system-bath couplings, which is most important for natural photosynthetic complexes, the combined CMRT+PMA gives reasonable results with acceptable computational efforts