The Tax Sensitivity of Foreign Direct Investment: Evidence from Firm-Level Panel Data

Understanding the determinants of foreign direct investment (FDI) is important for analyzing capital flows and the industrial organization of multinational firms. Most empirical studies of FDI, however, have focused on case studies of nontax factors in overseas investment decisions or on discerning reduced-form relationships between some measure of FDI and variables relating to nontax and tax aspects of the investment decision. In this paper, we examine the effects of taxation on FDI using previously unexplored (for this purpose) panel data on FDI by subsidiaries of U.S. multinational firms collected by Compustat's geographic segment file project. These firm- level data contain information on new capital investment overseas which enable us to measure tax influences on FDI more precisely and allow us to focus on structural models of subsidiaries' investment decision. Our empirical results cast significant doubt on the simplest notion that 'taxes don't matter' for U.S. firms' FDI decisions. Tax parameters influence FDI in precisely the way indicated by neoclassical models. Our results also lend support to the application of the 'tax capitalization' model to the study of dividend repatriation and foreign direct investment decisions.

Generating-function method for tensor products

This is the first of two articles devoted to a exposition of the generating-function method for computing fusion rules in affine Lie algebras. The present paper is entirely devoted to the study of the tensor-product (infinite-level) limit of fusions rules. We start by reviewing Sharp's character method. An alternative approach to the construction of tensor-product generating functions is then presented which overcomes most of the technical difficulties associated with the character method. It is based on the reformulation of the problem of calculating tensor products in terms of the solution of a set of linear and homogeneous Diophantine equations whose elementary solutions represent ``elementary couplings''. Grobner bases provide a tool for generating the complete set of relations between elementary couplings and, most importantly, as an algorithm for specifying a complete, compatible set of ``forbidden couplings''.Comment: Harvmac (b mode : 39 p) and Pictex; this is a substantially reduced version of hep-th/9811113 (with new title); to appear in J. Math. Phy

Generating-function method for fusion rules

This is the second of two articles devoted to an exposition of the generating-function method for computing fusion rules in affine Lie algebras. The present paper focuses on fusion rules, using the machinery developed for tensor products in the companion article. Although the Kac-Walton algorithm provides a method for constructing a fusion generating function from the corresponding tensor-product generating function, we describe a more powerful approach which starts by first defining the set of fusion elementary couplings from a natural extension of the set of tensor-product elementary couplings. A set of inequalities involving the level are derived from this set using Farkas' lemma. These inequalities, taken in conjunction with the inequalities defining the tensor products, define what we call the fusion basis. Given this basis, the machinery of our previous paper may be applied to construct the fusion generating function. New generating functions for sp(4) and su(4), together with a closed form expression for their threshold levels are presented.Comment: Harvmac (b mode : 47 p) and Pictex; to appear in J. Math. Phy

Palatability of teff grass by horses

Most forages commonly used to feed horses have potential detriments including blister beetles or excessive fiber concentrations. Teff grass (T), a warm-season annual forage, has the potential to be a good alternative for horses because of its lack of observed disorders. Our objective was to compare preference by horses for T harvested under different conditions with that of bermudagrass (B) harvested at two maturities. Six different forages were evaluated: T harvested at the late vegetative stage (TLV), at late bloom but that incurred 33 mm of rainfall between mowing and baling (TLBR), with caryopsis visible (TES), or at soft dough (TSD), and B harvested at late vegetative (BLV) and mid-bloom (BMB) growth stages. Five mature horses were used in a balanced incomplete block design where each horse received a different combination of 4 forages each day for 6 d. The 4 different forages were suspended in hay nets in each corner of each stall, and each hay was offered at 50% of the average daily hay consumption measured during a 10-d adaptation period. Forage preference as measured by individual forage DM consumption (kg and % of total DM consumed across the 4 forages) was greatest (P\u3c 0.05) from TLV followed by BLV. Preference (kg and % of total DM consumed) of BMB was greater (P\u3c 0.05) than that of TMBR, TES, and TSD, which did not differ from each other (P ≥ 0.63). Therefore, within a specific growth stage, horses apparently preferred teff grass, but effects of maturity and rainfall had a more dramatic effect on preference by horses than forage species

Microscopic theory for the glass transition in a system without static correlations

We study the orientational dynamics of infinitely thin hard rods of length L, with the centers-of-mass fixed on a simple cubic lattice with lattice constant a.We approximate the influence of the surrounding rods onto dynamics of a pair of rods by introducing an effective rotational diffusion constant D(l),l=L/a. We get D(l) ~ [1-v(l)], where v(l) is given through an integral of a time-dependent torque-torque correlator of an isolated pair of rods. A glass transition occurs at l_c, if v(l_c)=1. We present a variational and a numerically exact evaluation of v(l).Close to l_c the diffusion constant decreases as D(l) ~ (l_c-l)^\gamma, with \gamma=1. Our approach predicts a glass transition in the absence of any static correlations, in contrast to present form of mode coupling theory.Comment: 6 pages, 3 figure

Human Nav1.6 Channels Generate Larger Resurgent Currents than Human Nav1.1 Channels, but the Navβ4 Peptide Does Not Protect Either Isoform from Use-Dependent Reduction

Voltage-gated sodium channels are responsible for the initiation and propagation of action potentials (APs). Two brain isoforms, Nav1.1 and Nav1.6, have very distinct cellular and subcellular expression. Specifically, Nav1.1 is predominantly expressed in the soma and proximal axon initial segment of fast-spiking GABAergic neurons, while Nav1.6 is found at the distal axon initial segment and nodes of Ranvier of both fast-spiking GABAergic and excitatory neurons. Interestingly, an auxiliary voltage-gated sodium channel subunit, Navβ4, is also enriched in the axon initial segment of fast-spiking GABAergic neurons. The C-terminal tail of Navβ4 is thought to mediate resurgent sodium current, an atypical current that occurs immediately following the action potential and is predicted to enhance excitability. To better understand the contribution of Nav1.1, Nav1.6 and Navβ4 to high frequency firing, we compared the properties of these two channel isoforms in the presence and absence of a peptide corresponding to part of the C-terminal tail of Navβ4. We used whole-cell patch clamp recordings to examine the biophysical properties of these two channel isoforms in HEK293T cells and found several differences between human Nav1.1 and Nav1.6 currents. Nav1.1 channels exhibited slower closed-state inactivation but faster open-state inactivation than Nav1.6 channels. We also observed a greater propensity of Nav1.6 to generate resurgent currents, most likely due to its slower kinetics of open-state inactivation, compared to Nav1.1. These two isoforms also showed differential responses to slow and fast AP waveforms, which were altered by the Navβ4 peptide. Although the Navβ4 peptide substantially increased the rate of recovery from apparent inactivation, Navβ4 peptide did not protect either channel isoform from undergoing use-dependent reduction with 10 Hz step-pulse stimulation or trains of slow or fast AP waveforms. Overall, these two channels have distinct biophysical properties that may differentially contribute to regulating neuronal excitability

Extracellular signal-regulated kinases mediate the enhancing effects of inflammatory mediators on resurgent currents in dorsal root ganglion neurons

Previously we reported that a group of inflammatory mediators significantly enhanced resurgent currents in dorsal root ganglion neurons. To understand the underlying intracellular signaling mechanism, we investigated the effects of inhibition of extracellular signal-regulated kinases and protein kinase C on the enhancing effects of inflammatory mediators on resurgent currents in rat dorsal root ganglion neurons. We found that the extracellular signal-regulated kinases inhibitor U0126 completely prevented the enhancing effects of the inflammatory mediators on both Tetrodotoxin-sensitive and Tetrodotoxin-resistant resurgent currents in both small and medium dorsal root ganglion neurons. U0126 substantially reduced repetitive firing in small dorsal root ganglion neurons exposed to inflammatory mediators, consistent with prevention of resurgent current amplitude increases. The protein kinase C inhibitor Bisindolylmaleimide I also showed attenuating effects on resurgent currents, although to a lesser extent compared to extracellular signal-regulated kinases inhibition. These results indicate a critical role of extracellular signal-regulated kinases signaling in modulating resurgent currents and membrane excitability in dorsal root ganglion neurons treated with inflammatory mediators. It is also suggested that targeting extracellular signal-regulated kinases-resurgent currents might be a useful strategy to reduce inflammatory pain