A Case Where Barro Expectations Are Not Rational

This note generalizes Feldstein’s (1976) criticism of Barro’s(1974) analysis for the case that the interest rate exceeds the growth rate. This is done by considering an economy in steady state where all agents hold “Barro expectations”: they believe that government debt must necessarily be repaid and therefore leave the present value of their income streams unchanged. In this scenario, a change in the mode of taxation affects the present value of disposable income in the private sector. This violates their Barro expectations

Variational Worldline Approximation for the Relativistic Two-Body Bound State in a Scalar Model

We use the worldline representation of field theory together with a variational approximation to determine the lowest bound state in the scalar Wick-Cutkosky model where two equal-mass constituents interact via the exchange of mesons. Self-energy and vertex corrections are included approximately in a consistent way as well as crossed diagrams. Only vacuum-polarization effects of the heavy particles are neglected. In a path integral description of an appropriate current-current correlator an effective, retarded action is obtained by integrating out the meson field. As in the polaron problem we employ a quadratic trial action with variational functions to describe retardation and binding effects through multiple meson exchange.The variational equations for these functions are derived, discussed qualitatively and solved numerically. We compare our results with the ones from traditional approaches based on the Bethe-Salpeter equation and find an enhanced binding contrary to some claims in the literature. For weak coupling this is worked out analytically and compared with results from effective field theories. However, the well-known instability of the model, which usually is ignored, now appears at smaller coupling constants than in the one-body case and even when self-energy and vertex corrections are turned off. This induced instability is investigated analytically and the width of the bound state above the critical coupling is estimated.Comment: 62 pages, 7 figures, FBS style, published versio

Inequality, Fiscal Capacity and the Political Regime: Lessons from the Post-Communist Transition

Using panel data for twenty-seven post-communist economies between 1987-2003, we examine the nexus of relationships between inequality, fiscal capacity (defined as the ability to raise taxes efficiently) and the political regime. Investigating the impact of political reform we find that full political freedom is associated with lower levels of income inequality. Under more oligarchic (authoritarian) regimes, the level of inequality is conditioned by the state’s fiscal capacity. Specifically, oligarchic regimes with more developed fiscal systems are able to defend the prevailing vested interests at a lower cost in terms of social injustice. This empirical finding is consistent with the model developed by Acemoglu (2006). We also find that transition countries undertaking early macroeconomic stabilisation now enjoy lower levels of inequality; we confirm that education fosters equality and the suggestion of Commander et al (1999) that larger countries are prone to higher levels of inequality.http://deepblue.lib.umich.edu/bitstream/2027.42/57211/1/wp831 .pd

Worker remittances and the global preconditions of ‘smart development’

With the growing environmental crisis affecting our globe, ideas to weigh economic or social progress by the ‘energy input’ necessary to achieve it are increasingly gaining acceptance. This question is intriguing and is being dealt with by a growing number of studies, focusing on the environmental price of human progress. Even more intriguing, however, is the question of which factors of social organization contribute to a responsible use of the resources of our planet to achieve a given social result (‘smart development’). In this essay, we present the first systematic study on how migration – or rather, more concretely, received worker remittances per GDP – helps the nations of our globe to enjoy social and economic progress at a relatively small environmental price. We look at the effects of migration on the balance sheets of societal accounting, based on the ‘ecological price’ of the combined performance of democracy, economic growth, gender equality, human development, research and development, and social cohesion. Feminism in power, economic freedom, population density, the UNDP education index as well as the receipt of worker remittances all significantly contribute towards a ‘smart overall development’, while high military expenditures and a high world economic openness are a bottleneck for ‘smart overall development’

Constraining The Assembly Of Normal And Compact Passively Evolving Galaxies From Redshift z=3 To The Present With CANDELS

We study the evolution of the number density, as a function of the size, of passive early-type galaxies with a wide range of stellar masses 10^10<M*/Msun<10^11.5) from z~3 to z~1, exploiting the unique dataset available in the GOODS-South field, including the recently obtained WFC3 images as a part of the Cosmic Assembly Near-infrared Deep Extragalactic Legacy Survey (CANDELS). In particular, we select a sample of 107 massive (M*>10^10 M_sun), passive (SSFR<10^-2 Gyr^-1) and morphologically spheroidal galaxies at 1.2<z<3, taking advantage of the panchromatic dataset available for GOODS, including VLT, CFHT, Spitzer, Chandra and HST ACS+WFC3 data. We find that at 1<z<3 the passively evolving early-type galaxies are the reddest and most massive objects in the Universe, and we prove that a correlation between mass, morphology, color and star-formation activity is already in place at that epoch. We measure a significant evolution in the mass-size relation of passive early-type galaxies (ETGs) from z~3 to z~1, with galaxies growing on average by a factor of 2 in size in a 3 Gyr timescale only. We witness also an increase in the number density of passive ETGs of 50 times over the same time interval. We find that the first ETGs to form at z>2 are all compact or ultra-compact, while normal sized ETGs (meaning ETGs with sizes comparable to those of local counterparts of the same mass) are the most common ETGs only at z<1. The increase of the average size of ETGs at 0<z<1 is primarily driven by the appearance of new large ETGs rather than by the size increase of individual galaxies.Comment: 9 pages, 5 figures, submitted to Ap

Infected dendritic cells are sufficient to mediate the adjuvant activity generated by Venezuelan equine encephalitis virus replicon particles

Replicon particles derived from Venezuelan equine encephalitis virus (VEE) are infectious non-propagating particles which act as a safe and potent systemic, mucosal, and cellular adjuvant when delivered with antigen. VEE and VEE replicon particles (VRP) can target multiple cell types including dendritic cells (DCs). The role of these cell types in VRP adjuvant activity has not been previously evaluated, and for these studies we focused on the contribution of DCs to the response to VRP. By analysis of VRP targeting in the draining lymph node, we found that VRP induced rapid recruitment of TNF-secreting monocyte-derived inflammatory dendritic cells. VRP preferentially infected these inflammatory DCs as well as classical DCs and macrophages, with less efficient infection of other cell types. DC depletion suggested that the interaction of VRP with classical DCs was required for recruitment of inflammatory DCs, induction of high levels of many cytokines, and for stable transport of VRP to the draining lymph node. Additionally, in vitro-infected DCs enhanced antigen-specific responses by CD4 and CD8 T cells. By transfer of VRP-infected DCs into mice we showed that these DCs generated an inflammatory state in the draining lymph node similar to that achieved by VRP injection. Most importantly, VRP-infected DCs were sufficient to establish robust adjuvant activity in mice comparable to that produced by VRP injection. These findings indicate that VRP infect, recruit and activate both classical and inflammatory DCs, and those DCs become mediators of the VRP adjuvant activity

Keck-I MOSFIRE spectroscopy of compact star-forming galaxies at z≳\gtrsim2: High velocity dispersions in progenitors of compact quiescent galaxies

We present Keck-I MOSFIRE near-infrared spectroscopy for a sample of 13 compact star-forming galaxies (SFGs) at redshift $2\leq z \leq2.5$ with star formation rates of SFR$\sim$100M$_{\odot}$ y$^{-1}$ and masses of log(M/M$_{\odot}$)$\sim10.8$. Their high integrated gas velocity dispersions of $\sigma_{\rm{int}}$=230$^{+40}_{-30}$ km s$^{-1}$, as measured from emission lines of H$_{\alpha}$ and [OIII], and the resultant M$_{\star}-\sigma_{\rm{int}}$ relation and M$_{\star}$$-$M$_{\rm{dyn}}$ all match well to those of compact quiescent galaxies at $z\sim2$, as measured from stellar absorption lines. Since log(M$_{\star}$/M$_{\rm{dyn}}$)$=-0.06\pm0.2$ dex, these compact SFGs appear to be dynamically relaxed and more evolved, i.e., more depleted in gas and dark matter ($<$13$^{+17}_{-13}$\%) than their non-compact SFG counterparts at the same epoch. Without infusion of external gas, depletion timescales are short, less than $\sim$300 Myr. This discovery adds another link to our new dynamical chain of evidence that compact SFGs at $z\gtrsim2$ are already losing gas to become the immediate progenitors of compact quiescent galaxies by $z\sim2$.Comment: 12 pages, 7 figures, submitted to Ap