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.     

Organizational Compatibility and Workplace Drug Testing: Modeling the Adoption of Innovative Social Control Practices

Few researchers have examined organizational variation in the adoption of workplace drug testing, but innovation theory suggests that adoption is more likely when it is compatible with an organization's values, previously introduced ideas, and needs. Using data from the 1997 National Employee Survey, this research models the effects of organizational compatibility, industry, and establishment size on the adoption of drug testing. The data reveal that compatibility, as measured by an organization's rules orientation, presence of an employee assistance program, and mechanization, is associated with the adoption of drug testing. As predicted, the adoption of drug testing varies across industries and by establishment size.     

Desired Outcomes for Children and Adolescents with Autistic Spectrum Disorders

Within children's services, frameworks for assessing outcomes have been developed in the absence of consultation with children with autistic spectrum disorders and their parents. The research reported here worked with parents, other key adults and children with autistic spectrum disorders to identify desired outcomes. It found similarities with non‐autistic children in terms of the broad types of outcomes desired. However, the presence of autism meant either new or different sorts of outcomes were reported. Implications in terms of the ways outcomes for autistic children are defined and measured, and the role of services in achieving outcomes is discussed. © 2006 The Author(s).     

Trait Expressiveness and Marital Satisfaction: The Role of Idealization Processes

This study examined the processes that underlie the association between trait expressiveness and marital satisfaction. A total of 168 newlywed couples participated in a four‐wave, 13‐year longitudinal study of marriage. Cross‐sectional and longitudinal path analyses suggested that expressiveness promotes satisfaction by leading spouses to engage in affectionate behavior and by leading them to idealize their partner. Expressive people formed idealized images of their partner because they brought out the best in their partner's behavior and because they interpreted their partner's behavior in a favorable light. The study extends previous research by showing that the benefits of trait expressiveness extend into the second decade of marriage and by providing a plausible explanation of the connections between trait expressiveness and marital satisfaction.     

Reconsidering the Evolution of Nonlinguistic Communication: The Case of Laughter

Nonlinguistic communication is typically proposed to convey representational messages, implying that particular signals are associated with specific signaler emotions, intentions, or external referents. However, common signals produced by both nonhuman primates and humans may not exhibit such specificity, with human laughter for example showing significant diversity in both acoustic form and production context. We therefore outline an alternative to the representational approach, arguing that laughter and other nonlinguistic vocalizations are used to influence the affective states of listeners, thereby also affecting their behavior. In the case of laughter, we propose a primary function of accentuating or inducing positive affect in the perceiver in order to promote a more favorable stance toward the laugher. Two simple strategies are identified, namely producing laughter with acoustic features that have an immediate impact on listener arousal, and pairing these sounds with positive affect in the listener to create learned affective responses. Both depend on factors like the listener's current emotional state and past interactions with the vocalizer, with laughers predicted to adjust their sounds accordingly. This approach is used to explain findings from two experimental studies that examined the use of laughter in same-sex and different-sex dyads composed of either friends or strangers, and may be applicable to other forms of nonlinguistic communication.     

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.