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.     

Statistical consulting

The paper and the special issue focus on the activity of statistical consulting and its varieties. This includes academic consulting, consulting to and in industry as well as statistics in public media.     

Some results on optimality in models with heteroscedastic errors from partial optimum designs

This paper studies optimum designs for linear models when the errors are heteroscedastic. Sufficient conditions are given in order to obtainD-, A- andE-optimum designs for a complete regression model from partial optimum designs for some sub-parameters. A result about optimality for a complete model from the optimality for the submodels is included. Supported by Junta de Andalucía, research group FQM244.     

A “brer rabbit” case for reverse mandated benefits

Reverse mandated benefits is a government-mandated policy that requires employees to provide their employers with benefits that workers would not provide otherwise. Of course, only those benefits would be mandated that are worth more to employers than they cost, as determined by political authorities. My case for such a policy argues that it is at least as sensible as policies mandating that employers provide benefits to their employees that would not be provided otherwise.     

A pilot study of the contribution of empathy to burnout in Salvation Army Officers

Although empathy has been found to distinguish effective counsellors from less effective counsellors, human services professionals who continually experience negative emotional reactions to the feelings that clients express in counselling may be at risk of developing burnout. This study examined the hypothesis that emotional empathy rather than cognitive empathy is associated with burnout. The sample of human services professionals consisted of 71 Salvation Army Officers. Multiple regression was used to investigate whether the dimensions of empathy could predict three aspects of burnout: personal accomplishment, emotional exhaustion and depersonalization. The first regression analysis indicated that personal distress and empathic concern were significant predictor of personal accomplishment. The second analysis indicated that personal distress was a significant predictor of emotional exhaustion. The third indicated that empathic concern was a significant predictor of depersonalization. Although these results support the hypothesis, personal distress was negatively associated with personal accomplishment, whereas empathic concern was positively associated with personal accomplishment. The small size of the sample may have influenced the reliability of the findings. A multidimensional approach to the role of empathy in counselling may help human services professionals to manage their emotional reactions when they engage in counselling with distressed clients.     

The Social Context of Police Lying

This is an analysis of the social context of normal police lies. We define lies as speech acts which the speaker knows are misleading or false, are intended to deceive, and where evidence to the contrary is known to the observer. Lies are relative to a moral context, and what an audience will accept. Lies include excuses, which deny full responsibility for an act, but acknowledge its immorality, and justifications, which accept responsibility but deny blame-worthiness. Police learn to lie and to carefully distinguish normal (or acceptable) lies from unacceptable lies, suggesting that lies are a part of a negotiated occupational order. We show how and why some types of lies are rewarded by police using ethnographic data from an 18 month field study of a large urban force. Lies can be of little issue, or become troublesome. We report and analyze two kinds of troublesome lies: case lies, recognized stories an officer utilizes in a courtroom or on paper to facilitate the conviction of a suspect, and cover stories, lies an officer tells in court, to supervisors, and on the job with the aim of providing a verbal shield or mitigation in the event of discipline. Both excuses and justifications are woven together in these vignettes. An example of a refusal to lie is used to illustrate some of the limits on lying as well organizational factors in lying. Some implications for official lying are also noted.