Political Economy of Property Tax Reform: Hawaii’s Experiment with Split Rate Property Taxation

Economic theory suggests that switching from a general property tax to a split-rate tax increases land use efficiency and stimulates urban core development while preserving the environment and reducing urban sprawl. Under split-rate property taxation, land is typically taxed at a significantly higher rate than improvements. Beginning in 1965 Hawaii experimented with a statewide split-rate property tax system to encourage economic growth and effect land reform. The experiment was ended in 1977. Following the transfer of property taxing powers to the counties in 1978, some counties brought back the split-rate property tax at times. Since 2006, Kauai County has adopted the unusual practice of taxing improvements at a higher rate than land for most property classes. This paper chronicles and explains the rationale behind Hawaii state and county experiments with split rate property taxation.Property taxes, split rate property taxation, tourist taxes

Is Financial Innovation Good for the Economy?

There has been a great deal of financial innovation in recent decades but its social value is unclear. In the run-up to 2008, banks took large amounts of risk relative to the size of the economy. This approach was made possible by and sometimes justified in terms of "innovation." But it also created a great deal of downside risk for the economy-including widespread job losses and a big increase in the fiscal deficit. Innovation is among the most powerful forces that shape human society. The improvements in the material standard of living enjoyed by most (though not all) Americans are largely due to innovation. One of the principal arguments for free-market capitalism is that it is the economic system that most encourages innovation, because it allows innovators to capture a significant part of the benefits of their work. Today, financial innovation stands accused of being complicit in the financial crisis that has created the first global recession in decades. (See, e.g., Johnson and Kwak 2010, 105-9). The very innovations that were celebrated by former Federal Reserve chairman Alan Greenspan earlier this decade-negative-amortization mortgages, collateralized debt obligations (CDOs) and synthetic CDOs, credit default swaps, and so forth-either amplified or caused the crisis, depending on your viewpoint. However, the conventional wisdom is coalescing around the idea that financial innovation is basically good, but just needs to be watched a little more carefully. As Ben Bernanke said in a speech in May 2007: "We should also always keep in view the enormous economic benefits that flow from a healthy and innovative financial sector. The increasing sophistication and depth of financial markets promote economic growth by allocating capital where it can be most productive. The dispersion of risk more broadly across the financial system has, thus far, increased the resilience of the system and the economy to shocks. When proposing or implementing regulation, we must seek to preserve the benefits of financial innovation even as we address the risks that may accompany that innovation" (Bernanke 2007). Intellectual conservatives and bankers have mounted a more fervent defense of financial innovation. Niall Ferguson (2009) argued recently, "We need to remember that much financial innovation over the past 30 years was economically beneficial, and not just to the fat cats of Wall Street." But where is the evidence? It may seem obvious that if innovation promotes economic growth, financial innovation must also promote economic growth. But that does not necessarily follow. To understand this, we need to think about what we mean by innovation and how recent-and likely future-financial innovations affect concentration and risk in our financial system. The benefits of recent financial innovations have frequently been overstated. And to the extent that these innovations have encouraged or facilitated a high degree of leverage among very big institutions-and more devastating spillovers in the event that a big bank or other highly leveraged firm fails-we need to reassess potential and realized costs and risks

The Value of Connections in Turbulent Times: Evidence from the United States

We thank Isil Erel, Taylor Nadauld, and René Stulz for sharing data. For helpful comments we thank Josh Angrist, Caroline Hoxby, Suresh Naidu, Francesco Trebbi, and people who provided comments during or after our talks at MIT, Northwestern, Harvard Business School, the International Monetary Fund, the University of Alberta, BYU, Yale, the University of California at Berkeley, and the 2012 Econometric Society meetings. We are also grateful for constructive suggestions from some former officials.The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner’s confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small network of financial sector executives during a time of acute crisis and heightened policy discretion

Electronic Cash In E-Commerce: Comparative Analysis Of Views Of Hispanic And African-American Business Owners

Based on a survey of 1000 Hispanic and 1000 African-American business owners on the impacts e-commerce and e-cash are expected to have upon business practices, there were significant discrepancies between perceptions of these two groups regarding their ability to track and retain customers and to authenticate the source of e-cash payments.  In addition, while both groups of owners agreed that e-cash will likely replace traditional currency used in commercial transactions between consumers and business, they both are uncertain as to what degree central banks of countries should regulate and how much freedom the private sector should have for developing new forms of e-cash.  Hispanic business owners generally are more receptive to e-commerce viewing it as not making marketing strategies more difficult while African-American owners generally perceive enhanced issues to be resolved

Uniform convergence of multigrid V-cycle iterations for indefinite and nonsymmetric problems

In this paper, we present an analysis of a multigrid method for nonsymmetric and/or indefinite elliptic problems. In this multigrid method various types of smoothers may be used. One type of smoother which we consider is defined in terms of an associated symmetric problem and includes point and line, Jacobi, and Gauss-Seidel iterations. We also study smoothers based entirely on the original operator. One is based on the normal form, that is, the product of the operator and its transpose. Other smoothers studied include point and line, Jacobi, and Gauss-Seidel. We show that the uniform estimates for symmetric positive definite problems carry over to these algorithms. More precisely, the multigrid iteration for the nonsymmetric and/or indefinite problem is shown to converge at a uniform rate provided that the coarsest grid in the multilevel iteration is sufficiently fine (but not depending on the number of multigrid levels)

The natural cardioprotective particle HDL modulates connexin43 gap junction channels

Aims High-density lipoprotein (HDL) is known for its cardioprotective properties independent from its cholesterol transport activity. These properties are mediated by activation of kinases such as protein kinase C (PKC). Connexin43 (Cx43) is a gap junction protein present in ventricular cardiomyocytes. PKC-dependent phosphorylation modifies Cx43 gap junction channel properties and is involved in cardioprotection. We hypothesized that cardioprotective properties of HDL may be mediated in part by affecting Cx43 gap junction channels. Methods and results Neonatal rat cardiomyocytes were treated with HDL and Cx43 phosphorylation was evaluated by western blotting and immunofluorescence. We found that HDL promoted phosphorylation of Cx43 with a maximal induction at 5 min, which was inhibited by pre-treatment with various PKC inhibitors. Sphingosine-1-phosphate (S1P), a component of HDL, induced effects that were similar to those of HDL. These compounds significantly reduced diffusion of fluorescent dye among cardiomyocytes (∼50%) which could be prevented by PKC inhibition. As observed during optical recordings of transmembrane voltage, HDL and S1P depressed impulse conduction only minimally (<5%). Moreover, 5 min of HDL and S1P treatment at the onset of reperfusion significantly reduced infarct size (∼50%) in response to 30 min ischaemia in ex vivo experiments. Conclusion Short-term treatment with HDL or S1P induces phosphorylation of Cx43 by a PKC-dependent pathway. HDL-induced phosphorylation of Cx43 reduced the diffusion of large tracer molecules between cells, whereas impulse conduction was maintained. Moreover, 5 min treatment with HDL confers cardioprotection against ischaemia/reperfusion injury. These results link Cx43 for the first time to the short-term cardioprotective effects of HD

Rotary blood pump

A blood pump that comprises a pump housing having a blood flow path therethrough, a blood inlet, and a blood outlet; a stator mounted to the pump housing, the stator having a stator field winding for producing a stator magnetic field; a flow straightener located within the pump housing, and comprising a flow straightener hub and at least one flow straightener blade attached to the flow straightener hub; a rotor mounted within the pump housing for rotation in response to the stator magnetic field, the rotor comprising an inducer and an impeller; the inducer being located downstream of the flow straightener, and comprising an inducer hub and at least one inducer blade attached to the inducer hub; the impeller being located downstream of the inducer, and comprising an impeller hub and at least one impeller blade attached to the impeller hub; and preferably also comprising a diffuser downstream of the impeller, the diffuser comprising a diffuser hub and at least one diffuser blade. Blood flow stagnation and clot formation within the pump are minimized by, among other things, providing the inducer hub with a diameter greater than the diameter of the flow straightener hub; by optimizing the axial spacing between the flow straightener hub and the inducer hub, and between the impeller hub and the diffuser hub; by optimizing the inlet angle of the diffuser blades; and by providing fillets or curved transitions between the upstream end of the inducer hub and the shaft mounted therein, and between the impeller hub and the shaft mounted therein