Quality of Bureaucracy and Open-Economy Macro Policies

Bureaucratic quality in terms of the level of corruption varies widely across countries, and is in general slow to evolve relative to the speed with which many economic polices can be implemented such as the imposition of capital controls. In this paper, we study the possibility that quality of bureaucracy may be an important structural determinant of open-economy macro-policies, in particular, the imposition/removal of capital controls, and financial repression. We first derive a model that delivers such a result. Bureaucratic corruption translates into reduced ability by the government to collect tax revenue. Even if capital control/financial repression is otherwise inefficient, as long as the government needs the revenue for public goods provision, it would have to rely more on capital control/financial repression. For all countries for which we can obtain relevant data, we find that more corrupt countries are indeed more likely to impose capital controls, a pattern consistent with the model's prediction. The result of this paper suggests that a premature removal of capital controls mandated by outside institutions could reduce rather than enhance economic efficiency.

The quality of bureaucracy and capital account policies

The extent of bureaucracy varies extensively across countries, but the quality of bureaucracy within a country changes more slowly than economic policies. The authors propose that the quality of bureaucracy may be an important structural determinant of open economy macroeconomic policies - especially the imposition or removal of capital control. In their model, capital controls are an instrument of financial repression. They entail efficiency loss for the economy but also generate implicit revenue for the government. The results show that bureaucratic corruption translates into the government's reduced ability to collect tax revenues. Even if capital controls and financial repression are otherwise inefficient, the government still has to rely on them to raise revenues to provide public goods. Among the countries for which the authors could get relevant data, they find that the more corrupt ones are indeed more likely to impose capital controls, a pattern consistent with the model's prediction. To deal with possible reverse causality, they use the extent of corruption in a country's judicial system, and the degree of democracy, as the instrumental variables for bureaucratic corruption. The instrumental variable regressions show the same result: more corrupt countries are associated with more severe capital controls. The results suggest that as countries develop and improve their public institutions, reducing bureaucratic corruption over time, they will choose to gradually liberalize their capital accounts. Removing capital controls prematurely when forced by outside institutions to do so could reduce rather than improve their economic efficiency.Banks&Banking Reform,Governance Indicators,Environmental Economics&Policies,Economic Theory&Research,National Governance

A Penalized Linear and Nonlinear Combined Conjugate Gradient Method for the Reconstruction of Fluorescence Molecular Tomography

Conjugate gradient method is verified to be efficient for nonlinear optimization problems of large-dimension data. In this paper, a penalized linear and nonlinear combined conjugate gradient method for the reconstruction of fluorescence molecular tomography (FMT) is presented. The algorithm combines the linear conjugate gradient method and the nonlinear conjugate gradient method together based on a restart strategy, in order to take advantage of the two kinds of conjugate gradient methods and compensate for the disadvantages. A quadratic penalty method is adopted to gain a nonnegative constraint and reduce the illposedness of the problem. Simulation studies show that the presented algorithm is accurate, stable, and fast. It has a better performance than the conventional conjugate gradient-based reconstruction algorithms. It offers an effective approach to reconstruct fluorochrome information for FMT

Applications of variational methods to some three-point boundary value problems with instantaneous and noninstantaneous impulses

In this paper, we study the multiple solutions for some second-order p-Laplace differential equations with three-point boundary conditions and instantaneous and noninstantaneous impulses. By applying the variational method and critical point theory the multiple solutions are obtained in a Sobolev space. Compared with other local boundary value problems, the three-point boundary value problem is less studied by variational method due to its variational structure. Finally, two examples are given to illustrate the results of multiplicity

Diaqua­bis(picolinato N-oxide-κ2 O,O′)zinc(II)

In the title compound, [Zn(C6H4NO3)2(H2O)2], the Zn atom is located on a centre of inversion and shows a distorted octa­hedral coordination geometry. Two aqua ligands occupy the axial positions and four O atoms of the two chelating picolinic acid N-oxide ligands are located in the equatorial plane. Inter­molecular hydrogen bonds between aqua ligands and organic ligands link mol­ecules into a two-dimensional arrangement

The effects of viscosity on the circumplanetary disks

The effects of viscosity on the circumplanetary disks residing in the vicinity of protoplanets are investigated through two-dimensional hydrodynamical simulations with the shearing sheet model. We find that viscosity can affect properties of the circumplanetary disk considerably when the mass of the protoplanet is $M_p \lesssim 33M_\oplus$, where $M_\oplus$ is the Earth mass. However, effects of viscosity on the circumplanetary disk are negligibly small when the mass of the protoplanet $M_p \gtrsim 33M_\oplus$. We find that when $M_p \lesssim 33M_\oplus$, viscosity can disrupt the spiral structure of the gas around the planet considerably and make the gas smoothly distributed, which makes the torques exerted on the protoplanet weaker. Thus, viscosity can make the migration speed of a protoplanet lower. After including viscosity, size of the circumplanetary disk can be decreased by a factor of $\gtrsim 20$. Viscosity helps to transport gas into the circumplanetary disk from the differentially rotating circumstellar disk. The mass of the circumplanetary disk can be increased by a factor of 50% after viscosity is taken into account when $M_p \lesssim 33M_\oplus$. Effects of viscosity on the formation of planets and satellites are briefly discussed.Comment: 17 pages, 8 figures; accepted by RA