TAX COMPETITION, POLICY COMPETITION AND THE STRATEGIC USE OF POLICY RESTRICTIONS ON FOREIGN DIRECT INVESTMENTS

In a dynamic two-period model of tax competition, where competing countries strategically choose foreign investment restrictions which increases the sunk cost of investments, we show that choosing a higher level of restriction is beneficial for the competing countries. A higher level of restriction reduces competition and increases tax revenue in the later period, which allows the government to offer large tax holidays during the initial period of investment. The result is counter-intuitive as it is widely believed that sunk cost reduces foreign direct investments. Moreover, even though competing countries are ex-ante symmetric, the equilibrium choice of the level of restrictions may not be equal.

Plenty of Fish in the Sea: Divorce Choice and the Quality of Singles

In the literature of marriage, divorce choices are usually assumed to not affect the distribution of types in the pool of singles. The scope of the present paper is to overcome this assumption. We analyse divorce choices when separation decision influences the distribution of singles and, thus, their expected quality. We consider a three-period model where heterogeneous individuals may unilaterally experience divorce and return to the marriage market. The choices of individuals are based on the change in the distribution of singles and the cost of waiting and divorcing, taking into consideration the individual’s eligibility in the marriage market. There are two main findings: Firstly, positive assortative matching dissolves with divorce for some intermediate types. Therefore, the endogenous positive assortative matching that usually emerges in models with nontransferable utility is weakened when matches can dissolve. Secondly, the existence of ranges where divorce emerges among individuals with positive assortative matching implies the existence of two disconnected classes of types. If matchings in the first period were to occur between individuals of different classes, such matches would be dissolved later.

Supply Chain Replenishment Decision for Newsvendor Products with Multiple Periods and a Short Life Cycle

Traditionally, the newsvendor problem is a single-period model for a retailer and can be applied in the replenishment decision for a product with a short life cycle. However, many fashionable commodities are seasonal; not all of these products must be sold within a single period of a selling season, and they can be replenished once in each cycle. This study develops a novel multi-period model to determine multiple ordering replenishment decisions for a product over a short selling season. This study not only demonstrates the profit function for a retailer, but also provides those for both the manufacturer and the entire channel in a supply chain problem. The proposed multi-period ordering model provides explicit insights into how the ordering decisions of the retailer are affected in a specific period by considering unsold inventory or unsatisfied demand from a previous period. A numerical analysis and the simulation results illustrate the feasibility of the proposed model.

Dynamic Tax Competition, Home Bias and the gain from Non-preferential Taxation Regimes: A case for unilateral commitment

A country has an incentive to unilaterally commit to a non-preferential taxation regime even though the competitor adopts a preferential taxation regime. We show that a mixed taxation regime arises in a dynamic two-period model of tax competition between two symmetric countries where an investor has home-bias for the country where he/she invests in the initial period. A scenario where competing countries jointly adopt non-preferential taxation regimes is also a subgame-perfect equilibrium. The tax revenue of the country which adopts a preferential taxation regime in a mixed taxation regime is equal to the tax revenue a country receives when competing countries jointly adopt a non-preferential taxation regime.JEL classification: F21; H21; H25; H87

Statistical assessment of feeding corn with higher oil content to piglets in the starter phase

The aim of this study was to assess the digestibility coefficients (DC) of corn [maize] with an oil content above 3.46% and its effects on the performance of piglets when fed as dry grain (DG) and as rehydrated corn grain silage (RCGS). In Experiment I, 15 piglets (22.51 + 2.39 kg) were allocated to a reference diet (RD) and to two test diets in which corn in the RD was replaced with DG or RCGS. There were five replications of each treatment. Experiment II involved 36 piglets (14.76 ± 2.72 kg), which were assigned to a control diet with common corn grain and to diets in which DG or RCGS replaced the common corn. There were six replications of each treatment. Data were analysed with four statistical models. Model 1 included only the effect of treatment. Model 2 was similar to Model 1 but included initial bodyweight as a covariate. Model 3 was similar to model 1 but included the interaction of diet and period. Model 4 was similar to Model 3 but included the covariate. The more complicated models were generally preferred to Model 1 as they controlled more of the nuisance variation. Feeding a diet that contained RCGS reduced feed intake and improved feed conversion ratio (FCR).

Investor asset valuation under a wealth tax and a capital income tax

We study how a capital income tax and a wealth tax affect an investor's valuation of a company's stock in an efficient international capital market. Using a one-period model, a model of infinite horizon where the asset generates a future cash flow that is a martingale, and a finite horizon model where we abandon the martingale assumption, we find that a wealth tax and/or a capital income tax do not lead investors to value an investment differently from untaxed investors. Investors who seek a higher pre-tax rate of return due to capital taxes harm their own wealth.

Under What Conditions Does the Manager Withhold Segment Information?

This paper considers how a manager decides to disclose or withhold segment information in a capital market setting. In particular, we develop a multi-period model in which a manager in each period decides how to allocate her effort between two businesses. The profit earned in each segment is determined by the manager’s effort and ability as well as each segment’s market profitability and inherent uncertainty. In this setting, in contrast to the expectation of segment disclosure being withheld due to conflicts of interest between managers and shareholders, we identify the conditions under which the manager rationally withholds segment information and achieves higher social welfare. In a setting where the manager is concerned about the current stock price, disclosing more disaggregated information to the stock market does not necessarily lead to more efficient monitoring. The capital market values various segment earnings differently, and in response to this valuation, a rational manager may greatly alter her behavior, leading to inefficient outcomes.

Study on Concrete Cracking Caused by Non-Uniform Corrosion of Steel Bar

In this paper, the cracking of concrete cover caused by steel bar corrosion was discussed and studied based on the three-period model of steel bar corrosion in concrete. In the analysis, according to the non-uniformity of steel bar in reinforced concrete under natural environment, the contour of corrosion layer is simplified into a semi-ellipse. The steel bar corrosion was divided into three different periods by two corrosion points, namely, the void to be filled was exactly filled and the concrete cover was exactly cracked. Different model assumptions are made for each corrosion period. Before the concrete cover cracks, it is developed into an elastic plate. Based on the theory of elastic mechanics, the maximum corrosion depth of steel bar when concrete cover cracks is predicted.....