Why Do Most Countries Set High Tax Rates on Capital?

We consider tax competition in a world with tax bases exhibiting different degrees of mobility, modeled as mobile and immobile capital. An agreement among countries not to give preferential treatment to mobile capital results in an equilibrium where mobile capital is nevertheless taxed relatively lightly. In particular, one or two of the smallest countries, measured by their stocks of immobile capital, choose relatively low tax rates, thereby attracting mobile capital away from the other countries, which are then left to set revenue maximizing taxes on their immobile capital. This conclusion holds regardless of whether countries choose their tax policies sequentially or simultaneously. In contrast, unrestricted competition for mobile capital results in the preferential treatment of mobile capital by all countries, without cross-country differences in the taxation of mobile capital. Nevertheless our main result is that the non-preferential regime generates larger global tax revenue, despite the sizable revenue loss from the emergence of low-tax countries. By extending the analysis to include cross-country differences in productivities, we are able to resurrect a case for preferential regimes, but only if the productivity differences are sufficiently large.Tax Competition, Capital Mobility

Why Do Most Countries Set Higher Tax Rates on Capital?

We consider tax competition in a world with tax bases exhibiting different degrees of mobility, modeled as mobile and immobile capital. An agreement among countries not to give preferential treatment to mobile capital results in an equilibrium where mobile capital is nevertheless taxed relatively lightly. In particular, one or two of the smallest countries, measured by their stocks of immobile capital, choose relatively low tax rates, thereby attracting mobile capital away from the other countries, which are then left to set revenue maximizing taxes on their immobile capital. This conclusion holds regardless of whether countries choose their tax policies sequentially or simultaneously. In contrast, unrestricted competition for mobile capital results in the preferential treatment of mobile capital by all countries, without cross-country differences in the taxation of mobile capital. Nevertheless our main result is that the non-preferential regime generates larger global tax revenue, despite the sizable revenue loss from the emergence of low-tax countries. By extending the analysis to include cross country differences in productivities, we are able to resurrect a case for preferential regimes, but only if the productivity differences are sufficiently large.Tax Competition, Capital Mobility

Tax competition with heterogeneous capital mobility

In this paper, we look at corporate fiscal policies set by two competing regions in an environment where firms are heterogonous regarding to their mobility costs. We show that if regions are allow to tax domestic and foreign capital at different rates, they will offer a preferential treatment to foreign firms, even if mobility costs are symmetrically distributed across regions. Preventing such type of preferential treatment raises revenues for both regions, unless there exist a high density of firms with low moving costs. Because preferential tax treatment promotes firms movement for fiscal raisons, such tax regime always generates more social loss due to unnecessary delocalization. We also investigate the effect of heterogeneity among regions

Tax Competition with Heterogeneous Capital Mobility

An ongoing debate in the tax competition literature is the desirability for a system of countries, or regions, to restrict the preferential treatment of different forms of capital. A widespread belief is that without such restrictions, countries would aggressively compete for mobile capital, resulting in taxes that are far below their desirable level. We further investigate this question by departing from the bulk of the literature in three important ways. First, we assume that in addition of caring about tax revenue, countries also care about private sector income. Second, firms are distinguished by their country of origin. Finally, we consider both identical countries and countries that differ in size. We demonstrate how the relative desirability of the two tax regimes depends critically on country size differences and the distribution of moving costs. In some cases, preferential treatment is preferable. Large and small countries may also disagree about which regime is best

Occurrence of the orange wheat blossom midge [Diptera :Cecidomyiidae] in Quebec and its incidence on wheat grain microflora

À l'été 1995, on a prélevé des échantillons de blé (Triticum aestivum) dans des champs de diverses régions agricoles du Québec. La présence de larves de la cécidomyie orangée du blé (Sitodiplosis mosellana) fut quantifiée et une évaluation qualitative et quantitative de la microflore des grains fut réalisée. Les pertes moyennes de rendement causées par les larves de la cécidomyie du blé furent estimée à 6,3%. Le pourcentage des épis infestés fut significativement corrélé avec la contamination bactérienne et fongique des grains (r = 0,79). La présence spécifique du Fusarium graminearum dans les grains de blé fut aussi significativement corrélée avec le nombre de larves par épi (r= 0,67) ou par épillet (r= 0,67). Il appert que la cécidomyie du blé pourrait jouer un rôle dans la dissémination du F. graminearum.Samples of wheat spikes (Triticum aestivum) were collected in the summer of 1995 from different crop districts in Quebec and the occurrence of orange wheat blossom midge (Sitodiplosis mosellana) and seed microflora were determined. Estimated yield loss caused by wheat midge larvae averaged 6.3%. The percentage of infested spikes was significantly correlated with total seed contamination by fungi and bacteria (r = 0.79). The specific occurrence of Fusarium graminearum in grains was also significantly correlated with number of larvae per spike (r = 0.67) or per spikelet (r = 0.67). Consequently, the wheat midge might play a role in dissemination of F. graminearum

Visualization of Exact Invariant Solutions Associated with Atmospheric Waves in a Thin Circular Layer

The purpose of the research was to investigate the exact solutions of nonlinear shallow water equations associated with planetary equatorial waves corresponding to the Cauchy-Poisson free boundary problem describing the nonstationary motion of an incompressible perfect fluid propagating around a solid circle. We consider water waves for which the ratio of the depth of fluid above the circular bottom to the radius of the circle is small (shallow water)

Reductions in negative automatic thoughts in students attending mindfulness tutorials predicts increased life satisfaction

University education confronts students with stressful developmental challenges that can lead to mental health problems. Innovative programs must address an increasing prevalence of these problems but are impeded by the high costs involved. In this study, thirty-nine undergraduate students attended weekly one hour mindfulness meditation tutorials during a single (14 week) semester. Tutorials involved 40 minutes of guided meditation, followed by open-ended discussions on mindfulness and related scientific research. Multiple regression analysis tested associations between self-reported changes in mindfulness, in negative automatic thoughts and in satisfaction with life.Reductions in automatic thoughts accounted for a significant proportion of variance in life satisfaction and decreases in automatic thoughts were associated with an increased life satisfaction. This finding suggests guided meditation tutorials merit consideration in promoting student mental health on university campuses.Social Sciences and Humanities Research Council (SSHRC

Sleep-wake sensitive mechanisms of adenosine release in the basal forebrain of rodents : an in vitro study

Adenosine acting in the basal forebrain is a key mediator of sleep homeostasis. Extracellular adenosine concentrations increase during wakefulness, especially during prolonged wakefulness and lead to increased sleep pressure and subsequent rebound sleep. The release of endogenous adenosine during the sleep-wake cycle has mainly been studied in vivo with microdialysis techniques. The biochemical changes that accompany sleep-wake status may be preserved in vitro. We have therefore used adenosine-sensitive biosensors in slices of the basal forebrain (BFB) to study both depolarization-evoked adenosine release and the steady state adenosine tone in rats, mice and hamsters. Adenosine release was evoked by high K+, AMPA, NMDA and mGlu receptor agonists, but not by other transmitters associated with wakefulness such as orexin, histamine or neurotensin. Evoked and basal adenosine release in the BFB in vitro exhibited three key features: the magnitude of each varied systematically with the diurnal time at which the animal was sacrificed; sleep deprivation prior to sacrifice greatly increased both evoked adenosine release and the basal tone; and the enhancement of evoked adenosine release and basal tone resulting from sleep deprivation was reversed by the inducible nitric oxide synthase (iNOS) inhibitor, 1400 W. These data indicate that characteristics of adenosine release recorded in the BFB in vitro reflect those that have been linked in vivo to the homeostatic control of sleep. Our results provide methodologically independent support for a key role for induction of iNOS as a trigger for enhanced adenosine release following sleep deprivation and suggest that this induction may constitute a biochemical memory of this state