A two-stage approach to relaxation in billiard systems of locally confined hard spheres

We consider the three-dimensional dynamics of systems of many interacting hard spheres, each individually confined to a dispersive environment, and show that the macroscopic limit of such systems is characterized by a coefficient of heat conduction whose value reduces to a dimensional formula in the limit of vanishingly small rate of interaction. It is argued that this limit arises from an effective loss of memory. Similarities with the diffusion of a tagged particle in binary mixtures are emphasized.Comment: Submitted to Chaos, special issue "Statistical Mechanics and Billiard-Type Dynamical Systems

Tax competition, location, and horizontal foreign direct investment

We develop a model of capital tax/subsidy competition in which imperfectly competitive firms choose both the number and the location of the plants they operate. The endogenous presence of horizontal multinationals is shown to attenuate the “race to the bottom” and yields some results that are opposite to traditional findings in the tax competition literature. First, in the presence of horizontal multinationals, increasing subsidies decrease firms' profits by exacerbating price competition due to more firms ‘going multinational’. Second, instead of being always subsidized, capital may actually be taxed in equilibrium. Third, taxes/subsidies become strategically independent policy instruments, instead of being strategic complements. Last, there may exist multiple equilibria with either low or high subsidies.capital tax competition; international trade; horizontal multinationals; foreign direct investment; imperfect competition