The Effect of Tax Treaties on Multinational Firms: New Evidence from Microdata

This paper uses affiliate level data from Swedish multinationals to examine the impact of tax treaties on both overall affiliate sales and the composition of those sales. In line with previous results, we find little evidence for an effect of treaties on the level of total sales. We do, however, find that a tax treaty increases the probability of investment by a firm in a given country. In addition, we find that a treaty reduces exports to the parent but increases imports of intermediate inputs from the parent. This is consistent with treaties increasing the effective host tax. This suggests that tax treaties impact the behavior of multinationals along some dimensions but not along others.Tax Treaties, Multinational Firms, Foreign Direct Investment

Vertical FDI Reviseted

This study explores how relative skilled-wage premia affect FDI. Contrary to previous studies based on factor endowment differences, we find strong support for vertical FDI, in the sense that more FDI is conducted in countries where unskilled labor is relatively cheap. In addition, we find that relative skill-premia also affect FDI activities that have previously been associated with horizontal FDI, i.e. local affiliate sales. Consequently, the potential effects of changes in the relative wage costs on international production reallocation within MNEs are large. In fact, if not for the 8% rise in the US skilled wage premium relative to the average host country between 1986-1994, annual US affiliate sales abroad in relation to US GDP would have been half a percentage point higher.multinational firms, wage differentials

Privatization and Restructuring in Concentrated Markets

This paper examines the restructuring of state assets in markets deregulated by privatizations and investment liberalizations. We show that the government has a stronger incentive to restructure than the buyer: A firm restructuring only takes into account how much its own profit will increase. The government internalizes that restructuring increases the sales price not only from the increase in the acquirer’s profit, but also from a reduced profit for the non-acquirer, whose profits decrease due to its rival’s restructuring. We also identify situations where a slow sale can significantly reduce the sales price because of strategic investment and product market effects.Privatization, Asset ownership, Restructuring

Entrepreneurial Innovations in Network Industries

We contribute to the literature network effects by allowing entrepreneurs to sell their innovations to incumbents in addition to entering the industry. We identify three new effects. Stronger network effects make selling innovations attractive, as incumbents bid up the sales price in fear of letting a rival obtain the innovation. This improves innovation incentives. Increased compatibility, however, reduces innovation incentives by reducing the relative advantage the owner of the innovation gets, in turn resulting in a lower sales price. Finally, bidding competition for innovations is crucial. Innovation waves can occur in network industries as bidding competition is fierce in young industries with several players competing for the top spot, but weak in mature industries with a clear leader

Traffic-related air pollution, oxidative stress genes, and asthma (ECHRS)

BACKGROUND: Traffic-related air pollution is related with asthma, and this association may be modified by genetic factors. OBJECTIVES: We investigated the role of genetic polymorphisms potentially modifying the association between home outdoor levels of modeled nitrogen dioxide and asthma. METHODS: Adults from 13 cities of the second European Community Respiratory Health Survey (ECRHS II) were included (n = 2,920), for whom both DNA and outdoor NO(2) estimates were available. Home addresses were geocoded and linked to modeled outdoor NO(2) estimates, as a marker of local traffic-related pollution. We examined asthma prevalence and evaluated polymorphisms in genes involved in oxidative stress pathways [gluthatione S-transferases M1 (GSTM1), T1 (GSTT1), and P1 (GSTP1) and NAD(P)H:quinine oxidoreductase (NQO1)], inflammatory response [tumor necrosis factor alpha (TNFA)], immunologic response [Toll-like receptor 4 (TLR4)], and airway reactivity [adrenergic receptor beta2 (ADRB2)]. RESULTS: The association between modeled NO(2) and asthma prevalence was significant for carriers of the most common genotypes of NQO1 rs2917666 [odds ratio (OR) = 1.54; 95% confidence interval (CI), 1.10-2.24], TNFA rs2844484 (OR = 2.02; 95% CI, 1.30-3.27). For new-onset asthma, the effect of NO(2) was significant for the most common genotype of NQO1 rs2917666 (OR = 1.52; 95% CI, 1.09-2.16). A significant interaction was found between NQO1 rs2917666 and NO(2) for asthma prevalence (p = 0.02) and new-onset asthma (p = 0.04). CONCLUSIONS: Genetic polymorphisms in the NQO1 gene are related to asthma susceptibility among persons exposed to local traffic-related air pollution. This points to the importance of antioxidant pathways in the protection against the effects of air pollution on asthm

Caracterização do módulo de resiliência e da deformação permanente de três solos e misturas solo-brita

This dissertation aims at characterizing the resilient modulus and the permanent deformation of three soils and one gravel, and five mixtures proposed from the combination of these materials based on current Brazilian standards, aiming to fit them into the granulometric bands for use in base layer or sub-base of pavement. Soils were identified by the MCT test, as soil LG ', NA' and NG ', the first of lateritic behavior and the other two non-lateritic behavior, the gravel used has three different nominal sizes. The main objective of this research is to analyze the applicability of soil-gravel standards, through mechanical tests. Resilient modulus and permanent deformation tests were performed and analyzes were made on the resulting accommodation. The permanent deformation tests (DP) were performed with a minimum application of 150,000 load cycles, at 2 Hz frequency. The RM test, were performed at 1 Hz, as specified by standard. Data from the DP assay were generally satisfactory. However, the pure NA 'and NG' soils and the M1 mixture resulted in deformation values in the order of 4 mm, for the higher levels of tension considered to be a high value, when compared to the typical allowable total rutting of 12.5 mm. The resilience modulus data, most of which were in accordance with range indicated in the literature, and on the study of the shakedown, the materials presented behavior A and B, showing no rupture in optimum moisture.Esta dissertação visa a caracterização do módulo de resiliência e da deformação permanente de três solos e uma brita, e de cinco misturas propostas a partir da combinação destes materiais, baseadas em normas brasileiras vigentes, visando enquadrá-las nas faixas granulométricas para utilização em camada de base ou sub-base de pavimento. Os solos foram identificados pelo ensaio MCT, como LG’, NA’ e NG’, o primeiro de comportamento laterítico e os outros dois de comportamento não laterítico, a brita utilizada apresenta três tamanhos nominais diferentes. O objetivo principal desta pesquisa é analisar a aplicabilidade das normas solo-brita, por meio de ensaios mecânicos. Foram realizados ensaios de módulo de resiliência e deformação permanente e feitas análises sobre o acomodamento resultante. Os ensaios de deformação permanente (DP) foram realizados com a aplicação mínima de 150.000 ciclos de carga, a 2 Hz de frequência. Os ensaios de MR foram realizados a 1 Hz, como especificado por norma. Os dados resultantes do ensaio de DP foram em geral satisfatórios. Porém os solos NA’ e NG’ puros e a mistura M1 resultaram em valores de deformação na ordem de 4 mm, para os níveis mais elevados de tensão, considerado um valor elevado quando não há acomodamento, quando comparado ao afundamento de trilha de rodas total típico admissível de um pavimento de 12,5 mm. Os módulos de resiliência, na maioria, enquadraram-se em faixas indicadas pela literatura, e quanto ao shakedown, os materiais apresentaram comportamento A e B, não apresentando ruptura quando ensaiados na umidade ótima