Coordinating Capital Income Taxation Among a Subset of Countries

Tax competition among countries generally leads to inefficiently low tax rates on mobile tax bases like capital income. This should call for cooperative tax policies to be implemented, but as long as some countries do not take part in the cooperation the incentives for a subset of countries to undertake cooperative action may be limited. The outcome of such ''partial cooperation'' is derived within a linear-quadratic tax competition model, and the results suggest that positive, but insignificant welfare effects are to be reaped for the participating countries (the main benefits accruing to the countries not participating). The implications of these results for EU-policies on capital income taxation are briefly discussed.

Direct visualization of magnetic correlations in frustrated spinel ZnFe2_2O4_4

Magnetic materials with the spinel structure (A$^{2+}$B$^{3+}_2$O$^4$) form the core of numerous magnetic devices, but ZnFe$_2$O$_4$ constitutes a peculiar example where the nature of the magnetism is still unresolved. Susceptibility measurements revealed a cusp around $T_c=13\;\mathrm{K}$ resembling an antiferromagnetic transition, despite the positive Curie-Weiss temperature determined to be $\Theta_{CW}=102.8(1)\;\mathrm{K}$. Bifurcation of field-cooled and zero-field-cooled data below $T_c$ in conjunction with a frequency dependence of the peak position and a non-zero imaginary component below $T_c$ shows it is in fact associated with a spin-glass transition. Highly structured magnetic diffuse neutron scattering from single crystals develops between $50\;\mathrm{K}$ and $25\;\mathrm{K}$ revealing the presence of magnetic disorder which is correlated in nature. Here, the 3D-m$\Delta$PDF method is used to visualize the local magnetic ordering preferences, and ferromagnetic nearest-neighbor and antiferromagnetic third nearest-neighbor correlations are shown to be dominant. Their temperature dependence is extraordinary with some flipping in sign, and a strongly varying correlation length. The correlations can be explained by orbital interaction mechanisms for the magnetic pathways, and a preferred spin cluster. Our study demonstrates the power of the 3D-m$\Delta$PDF method in visualizing complex quantum phenomena thereby providing a way to obtain an atomic scale understanding of magnetic frustration

Government Debt and Capital Accumulation in the Blanchard-Cass-Yaari OLG Model

It is shown that although government debt in principle has an ambiguous effect on the steady state capital stock in an OLG model of the Blanchard-Cass-Yaari variety, once stability of the steady state equilibrium is imposed there is an unambiguous negative relation between the level of government debt and the capital stock.OLG model, government debt, stability, capital accumulation