International Tax Competition: A Case for International Cooperation in Globalization

The liberalization of international financial flows and foreign direct investment has induced countries to use diverse measures to attract inflow of foreign capital and foreign direct investment, which is expected to have a positive effect on the growth of GDP and thus a positive effect on social welfare. Tax exemption, reduction of tax rate, tax holiday, or diverse subsidies are some of the most important measures used. In this paper we study international tax cooperation, i.e., countries change and especially reduce tax rate for corporate income or for asset revenues to attract inflow of foreign direct investment. Both theoretical and empirical studies have shown the sensibility of foreign direct investment decision with respect to tax rate differences between home countries and host countries. In general, more inflow of foreign direct investment can be expected if the tax rate of the home country is lower than that of foreign countries. This is the main reason for international tax cooperation. In this paper we propose a simple model to prove the sub-optimal Nash non cooperative solution in a two-country tax-competition game. The model shows that international tax cooperation can improve welfare of the participating countries. How to reach a cooperative solution for an international tax competition game (ITCG) is therefore an important issue for further discussions and studies. International institutions can play a crucial role to reach international tax cooperation or international tax harmonization.     

Economics of Radiation Protection: Equity Considerations

In order to implement cost-benefit analysis of protective actions to reduce radiological exposures, one needs to attribute a monetary value to the avoided exposure. Recently, the International Commission on Radiological Protection has stressed the need to take into consideration not only the collective exposure to ionising radiation but also its dispersion in the population. In this paper, by using some well known and some recent results in the economics of uncertainty, we discuss how to integrate these recommendations in the valuation of the benefit of protection.     

PEER PRESSURE: EXPERIMENTAL EVIDENCE FROM RESTROOM BEHAVIOR

We provide experimental evidence on the effect of peer pressure on individual behavior. Specifically, we study the effect of being exposed to an observer in a public restroom on handwashing and urinal flushing behavior. Our estimates show that being exposed to an observer increases the probability of handwashing by 13 percentage points and the probability of urinal flushing by 15 percentage points. Given that handwashing and urinal flushing have social benefits that exceed individual benefits, our findings provide support for peer pressure as an additional way of addressing the social suboptimality arising from externalities. (JEL C91, C93)     

Watching online videos interactively: the impact of media capabilities in Chinese Danmaku video sites

In China, the implementation of a Danmaku social media system to sustain and raise user interest in online video sites is an increasingly widespread phenomenon. Danmaku technology is used to display users’ messages in written text on the online video stream. Little is known about the effects of this form of interactive enhancement. The aim of this empirical study is to evaluate the evolving media capabilities of the Danmaku system and their effects on users’ perceptions of interactivity and their intentions to continue using Danmaku. We draw on media synchronicity theory and apply it to a stimulus-organism-response model. Using this framework, we hypothesize that the media capabilities of the Danmaku system, namely its transmission velocity, parallelism, symbol sets, rehearsability, and reprocessability, elicit increased interactivity, which influences users’ instantaneous intentions to share and to continue the use of the Danmaku system. The results showed that both users’ instantaneous intention to share and their intention to continue to use were significantly affected by the perceived interactivity. Unlike the results of previous studies, our findings showed that all five media capabilities positively affected the users’ perceptions of interactivity. The potential theoretical and practical implications of our findings are discussed.     

Mobility and sociality in proximity-sensitive digital urban ecologies: ‘Timid encounters’ and ‘seam-sensitive walks’

This paper is a case study of the use of a proximity-sensitive game played on mobile gaming terminals, in Japan and in France, Dragon Quest 9, and of distinctive forms of mobility and urban encounters which emerge around it. We show how players, when assembled together, walk the ‘connected walk,’ that is they adopt a particular gait, slower than the usual walking pace, with repeated pauses which appears as a tentative and exploratory kind of mobility oriented towards the random occurrence of proximity-based screen-mediated events, and therefore both adjusted to and constitutive of the proximity-sensitive hybrid ecology as a serendipitous place, to be experienced as such. With respect to urban encounters, we have identified a characteristic tension, relevant to locative media in general, in which concerns with potential identification and recognition ‘in the game’ contrasts with the interaction order of urban traffic encounters, characterized by ‘civil inattention.’ This gives rise to the phenomenon of ‘timid encounters,’ in which players strive to experience game encounters with other players a few meters away, while trying to elude visual or verbal recognition.     

Wer wurde als homosexuell verfolgt?

This paper investigates the impact of the social structure on the persecution of homosexuals in Austria during the Nazi regime and the following democratic Republic. So far local studies for the German case have come to the conclusion that the middle class has been victim to the same, or event to a greater extent, of state-supported homophobia as the lower social class. An analysis of court files confirms this finding partly but reveals the working class as the mainly affected social group in the Austrian case. Social status, however, did only have a marginal influence on the length of imprisonment. The fact that different occupational groups were overrepresented among the sentenced homosexuals in the two considered periods of time (1938?C1944; 1945?C1955) points to systematic patterns of repression. As historical data is sparse we can only formulate hypotheses on why certain persons were more likely to be sentenced for being homosexual than others.     

The undercut procedure: an algorithm for the envy-free division of indivisible items

We propose a procedure for dividing a set of indivisible items between two players. We assume that each player’s preference over subsets of items is consistent with a strict ranking of the items, and that neither player has information about the other’s preferences. Our procedure ensures an envy-free division—each player receives a subset of items that it values more than the other player’s complementary subset—given that an envy-free division of “contested items,” which the players would choose at the same time, is possible. We show that the possibility of one player’s undercutting the other’s proposal, and implementing the reduced subset for himself or herself, makes the proposer “reasonable,” and generally leads to an envy-free division, even when the players rank items exactly the same. Although the undercut procedure is manipulable and its envy-free allocation may be Pareto-inferior, each player’s maximin strategy is to be truthful. Applications of the procedure are discussed briefly.     

Veränderte KontinuitätAltered Continuity

Despite profound economic and social changes in recent decades, many school leavers in Germany still go through the dual system of vocational training. The stability of this educational institution raises the question of whether, and if so how, apprentices’ entries into employment have changed in this period. Applying the method of sequence analysis, we look at process-produced longitudinal data from the Institute for Employment Research (IAB). It can be shown that the so-called standard pattern, that is the immediate hiring by the training firm on a full-time basis, has not been the norm at any time. Since the 1980s, we have observed a slight tendency for apprenticeship graduates to leave their training firms early. At the same time, continuation of employment within the training firm persists, and apprentices more frequently work part-time. We find the standard pattern of labour market entry to be most prevalent in large firms. Whereas women very often work part-time after their apprenticeships, foreign-born apprentices in particular suffer from disadvantageous labour market entry patterns, including longer periods of unemployment.