Taxes and Growth in a Financially Underdeveloped Country: Evidence from the Chilean Investment Boom

This paper argues that taxation of retained profits is particularly distortionary in an economy with good growth prospects and poorly developed financial markets because it primarily reduces the investment of financially constrained firms, investment that has marginal product greater than the after-tax market real interest rate. Contrarily, taxes on distributed profits or capital gains primarily reduce the investment of financially unconstrained firms. Chile experienced a banking crisis over the period from 1982 to 1986 and in 1984 reduced its tax rate on retained profits from 50 percent to 10 percent. We show that, consistent with our theory, there was a large increase in aggregate investment after the reform which was entirely funded by an increase in retained profits. Further, we show that investment grew by more in industries that depend more on external financing, according to the Rajan and Zingales (1998) measure. Finally, we present some weak evidence from comparisons of investment rates across firms for several different measures of their likelihood of being financially constrained.

A MEMS electrostatic particle transportation system

We demonstrate here an electrostatic MEMS system capable of transporting particles 5-10μm in diameter in air. This system consists of 3-phase electrode arrays covered by insulators (Figs. 1, 2). Extensive testing of this system has been done using a variety of insulation materials (silicon nitride, photoresist, and Teflon), thickness (0- 12μm), particle sizes (1-10μm), particle materials (metal, glass, polystyrene, spores, etc), waveforms, frequencies, and voltages. Although previous literature [1-2] claimed it impractical to electrostatically transport particles with sizes 5-10μm due to complex surface forces, this effort actually shows it feasible (as high as 90% efficiency) with the optimal combination of insulation thickness, electrode geometry, and insulation material. Moreover, we suggest a qualitative theory for our particle transportation system which is consistent with our data and finite-element electrostatic simulations

The two-phase model for calculating thermodynamic properties of liquids from molecular dynamics: Validation for the phase diagram of Lennard-Jones fluids

We propose a general approach for determining the entropy and free energy of complex systems as a function of temperature and pressure. In this method the Fourier transform of the velocity autocorrelation function, obtained from a short (20 ps) molecular dynamics trajectory is used to obtain the vibrational density of states (DoS) which is then used to calculate the thermodynamic properties by applying quantum statistics assuming each mode is a harmonic oscillator. This approach is quite accurate for solids, but leads to significant errors for liquids where the DoS at zero frequency, S(0), remains finite. We show that this problem can be resolved for liquids by using a two phase model consisting of a solid phase for which the DoS goes to zero smoothly at zero frequency, as in a Debye solid; and a gas phase (highly fluidic), described as a gas of hard spheres. The gas phase component has a DoS that decreases monotonically from S(0) and can be characterized with two parameters: S(0) and 3Ng, the total number of gas phase modes [3Ng0 for a solid and 3Ng3(N–1) for temperatures and pressures for which the system is a gas]. To validate this two phase model for the thermodynamics of liquids, we applied it to pure Lennard-Jones systems for a range of reduced temperatures from 0.9 to 1.8 and reduced densities from 0.05 to 1.10. These conditions cover the gas, liquid, crystal, metastable, and unstable states in the phase diagram. Our results compare quite well with accurate Monte Carlo calculations of the phase diagram for classical Lennard-Jones particles throughout the entire phase diagram. Thus the two-phase thermodynamics approach provides an efficient means for extracting thermodynamic properties of liquids (and gases and solids)

Electrolysis-based diaphragm actuators

This work presents a new electrolysis-based microelectromechanical systems (MEMS) diaphragm actuator. Electrolysis is a technique for converting electrical energy to pneumatic energy. Theoretically electrolysis can achieve a strain of 136 000% and is capable of generating a pressure above 200 MPa. Electrolysis actuators require modest electrical power and produce minimal heat. Due to the large volume expansion obtained via electrolysis, small actuators can create a large force. Up to 100 µm of movement was achieved by a 3 mm diaphragm. The actuator operates at room temperature and has a latching and reversing capability