Does growing up in economic hard times increase compassion? The case of attitudes towards immigration

There is some evidence that people who grew up in economic hard times more strongly favor government redistribution and are more compassionate towards the poor. We investigate how inclusive this increase in compassion is by studying how macroeconomic conditions experienced during young adulthood affect immigration attitudes. Using US and global data, we show that experiencing bad macroeconomic circumstances strengthen anti-immigration attitudes for life. Moreover, we find that people become generally more outgroup hostile. Our results thus suggest that the underlying motive for more government redistribution is not a universal increase in compassion, but more self-interested and restricted to one's ingroup

Does growing up in a recession increase compassion? The case of attitudes towards immigration

Macroeconomic conditions during young adulthood have a persistent impact on people's attitudes and preferences. The seminal paper by Giuliano and Spilimbergo (2014) shows that people who grew up in a recession are more likely to favor government redistribution and assistance to the poor. Moreover, they are more likely to believe that bad luck rather than a lack of hard work causes poverty, i.e. they seem to be more compassionate towards the poor. In this paper, we investigate how inclusive this increase in compassion is by studying how macroeconomic conditions experienced during young adulthood affect attitudes towards immigration. Using data from the General Social Survey and the World Value Survey, we find strong evidence that bad macroeconomic circumstances during young adulthood strengthen attitudes against immigration for the rest of people's lives. In addition, growing up in difficult macroeconomic times increases parochialism, i.e. people become more outgroup hostile --- not just against immigrants. Our results thus suggest that the underlying motive for more government redistribution in response to a recession does not originate from a universal increase in compassion, but rather seems to be more self-interested and restricted to one's ingroup

Country-by-country reporting : tension between transparency and tax planning

Aggressive tax planning efforts of highly profitable multinational companies (Base Erosion and Profit Shifting (BEPS)) have become the subject of intense public debate in recent years. As a response, several international initiatives and parties have called for more transparency in financial reporting, especially by means of a Country-by-Country Reporting (CbCR). In line with that, the OECD and the European Commission have recently presented proposals for a comprehensive disclosure of country-specific tax -related information for companies in all industry sectors. In our paper, we demonstrate that neither consolidated or individual financial statements nor other existing data sources seem to be an appropriate basis for providing such country-specific information. Instead, it would be necessary to define detailed and harmonized definitions and regulations to ensure comparability. The discussion on benefits and costs of a CbCR reveals that benefits (at least partially) lack a theoretical foundation and, overall, do not seem to outweigh associated costs. This holds true, in particular, since current tax planning activities are mainly based on the legal exploitation of gaps and loopholes in national and international tax law. Instead, we argue that tax legislators should limit profit shiting by enforcing tax rules and by closing gaps in tax law. In particular, we call for more tightened and standardized transfer pricing regulations and thin-cap rules to be adopted at an international level

Book-tax conformity and reporting behavior : a quasi-experiment

We examine how a comprehensive change in book-tax conformity affects firms’ reporting behavior. To this end, we exploit a Reform Act as a quasi-natural experiment which implied a decrease in book-tax conformity in Germany in 2010. In particular, this reform allows firms to exercise tax accounting options independently from financial accounting. Our study builds on a unique dataset of linked individual financial statements and actual tax return data. It covers roughly 150 incorporated firms for the years 2008 to 2012. Exploiting the exceptional change in conformity, we contribute to the ongoing debate on the impact of booktax conformity. Our results show that profitable companies, which have a clear tax sheltering incentive, actually use the newly introduced reporting leeway to manage taxable income downwards. This is especially attributable to companies exploiting favorable tax depreciation rules. Moreover, we find larger opportunistic tax reporting responses for small companies with less complex and predominantly domestic group structures. In addition, we observe that a decrease in book-tax conformity induces a decrease in the general persistence of taxable income, but at the same time gives rise to higher financial earnings persistence. This corroborates our finding of increased tax sheltering activity in post reform years

Transparency in Financial Reporting: Is Country-by-Country Reporting suitable to combat international profit shifting?

Aggressive tax planning efforts of highly profitable multinational companies (Base Erosion and Profit Shifting (BEPS)) have recently become the subject of intense public debate. As a response, several international initiatives and parties have called for more transparency in financial reporting, especially by means of a country-specific reporting of certain tax information (Country-by-Country Reporting (CbCR)). In our paper, we demonstrate that neither consolidated nor individual financial accounts seem to be an appropriate platform to provide such country-specific information and, therefore, that CbCR cannot be based on extended financial accounting standards. Moreover, we argue that even separate CbCR templates do not prevent multinationals from profit shifting, since their common tax minimization strategies are mainly based on the legal exploitation of gaps and loopholes in national and international tax law. In that regard, we show that expected costs for CbCR would exceed expected benefits and therefore contend that CbCR cannot be regarded as a convincing measure to combat international profit shifting. Instead, we argue that tax legislators should limit profit shifting by enforcing national and international tax rules and by closing gaps in tax law. In particular, we call for more tightened and standardized transfer pricing regulations to be adopted at an international level

The implications of book-tax tifferences : a meta-analysis

Over the last decade, a large body of tax accounting literature on the association between book-tax conformity (BTC)/book-tax differences (BTD) and firms’ opportunistic reporting behavior has emerged. Yet, existing empirical evidence on the questions whether increased book-tax conformity actually reduces Earnings Management (EM) and/or Tax Sheltering (TS) and whether book-tax differences are really indicative of such opportunistic reporting behavior is not yet clear. We therefore conduct a meta-analysis aimed at identifying the sources of heterogeneity in primary studies and at providing a consensus estimate with respect to the sign and the statistical significance level for the examined association. Our qualitative literature review reveals that major sources of heterogeneity in the study design include differences in the proxies for EM and TS and in the measures used to determine BTD and BTC. Our meta-regression results show that BTD are indeed indicative of opportunistic reporting behavior, and even more so of EM. These results are, however, weaker for studies that determine BTD only roughly as the difference between book and estimated taxable income instead of using more specific BTD proxies. Moreover, examining actual BTD computed from tax returns instead of only approximating these from financial statements strongly increases the effects. Hence, efforts taken to accurately determine BTD seem to be worth wile when it comes to the explanatory power for opportunistic reporting. Furthermore, our results suggest a negative association between book-tax conformity and EM/TS, which we interpret as an indicator for higher conformity indeed being effective in reducing aggressive reporting

Purines released from astrocytes inhibit excitatory synaptic transmission in the ventral horn of the spinal cord

Spinal neuronal networks are essential for motor function. They are involved in the integration of sensory inputs and the generation of rhythmic motor outputs. They continuously adapt their activity to the internal state of the organism and to the environment. This plasticity can be provided by different neuromodulators. These substances are usually thought of being released by dedicated neurons. However, in other networks from the central nervous system synaptic transmission is also modulated by transmitters released from astrocytes. The star-shaped glial cell responds to neurotransmitters by releasing gliotransmitters, which in turn modulate synaptic transmission. Here we investigated if astrocytes present in the ventral horn of the spinal cord modulate synaptic transmission. We evoked synaptic inputs in ventral horn neurons recorded in a slice preparation from the spinal cord of neonatal mice. Neurons responded to electrical stimulation by monosynaptic EPSCs. We used mice expressing the enhanced green fluorescent protein under the promoter of the glial fibrillary acidic protein to identify astrocytes. Chelating calcium with BAPTA in a single neighboring astrocyte increased the amplitude of synaptic currents. In contrast, when we selectively stimulated astrocytes by activating PAR-1 receptors with the peptide TFLLR, the amplitude of EPSCs evoked by a paired stimulation protocol was reduced. The paired-pulse ratio was increased, suggesting an inhibition occurring at the presynaptic side of synapses. In the presence of blockers for extracellular ectonucleotidases, TFLLR did not induce presynaptic inhibition. Puffing adenosine reproduced the effect of TFLLR and blocking adenosine A1 receptors with DPCPX prevented it. Altogether our results show that ventral horn astrocytes are responsible for a tonic and a phasic inhibition of excitatory synaptic transmission by releasing ATP, which gets converted into adenosine that binds to inhibitory presynaptic A1 receptors

Gender mainstreaming and the benchmarking fallacy of women in political decision-making

In this article the authors analyse the extent to which an explicitly gendered issue such as the position of wo/men in political decision-making has been approached from a gender mainstreaming perspective. They do so by exploring how the issue has been framed in three countries, the Netherlands, Spain, and Greece, and in the European Union. The analysis enables them both to provide a state of the art of how gender in political decision-making has been dealt with throughout the last decade in the selected case-studies and to offer insights on the potential for a gender mainstreaming approach of topics in which sex-related inequality is explicit. The main argument is that such policy issues contain a benchmarking fallacy. The easiness with which they can be quantified opens the door for an analysis and solution of problems of gender inequality in terms of numbers, without tackling underlying structural problemsIn this article the authors analyse the extent to which an explicitly gendered issue such as the position of wo/men in political decision-making has been approached from a gender mainstreaming perspective. They do so by exploring how the issue has been framed in three countries, the Netherlands, Spain, and Greece, and in the European Union. The analysis enables them both to provide a state of the art of how gender in political decision-making has been dealt with throughout the last decade in the selected case-studies and to offer insights on the potential for a gender mainstreaming approach of topics in which sex-related inequality is explicit. The main argument is that such policy issues contain a benchmarking fallacy. The easiness with which they can be quantified opens the door for an analysis and solution of problems of gender inequality in terms of numbers, without tackling underlying structural problems