Does Foreign Aid Increase Foreign Direct Investment?

The notion that foreign aid and foreign direct investment (FDI) are complementary sources of capital is conventional among governments and internationalcooperation agencies. This paper argues that the notion is incomplete. Within the framework of an open economy Solow model we show that the theoretical relationship between foreign aid and FDI is indeterminate. Aid may raise the marginal productivity of capital by financing complementary inputs, such as public infrastructure projects and human capital investment. However, aid may also crowd out productive private investments if it comes in the shape of physical capital transfers. We therefore turn to an empirical analysis of the relationship between FDI and disaggregated aid flows. Our results strongly support the hypotheses that aid invested in complementary inputs draws in foreign capital while aid invested in physical capital crowds out FDI. The combined effect of these two types of aid is small but on average positive.foreign aid; foreign direct investment (FDI); open economy Solow model

Quits, worker recruitment, and firm growth: theory and evidence

The authors use establishment data from the Job Openings and Labor Turnover Survey (JOLTS) to study the micro-level behavior of worker quits and their relation to recruitment and establishment growth. They find that quits decline with establishment growth, playing the most important role at slowly contracting firms. They also find a robust, positive relationship between an establishment's reported hires and vacancies and the incidence of a quit. This relationship occurs despite the finding that quits decline, and hires and vacancies increase, with establishment growth. The authors characterize these dynamics within a labor-market search model with on-the-job search, a convex cost of creating new positions, and multi-worker establishments. The model distinguishes between recruiting to replace a quitting worker and recruiting for a new position, and relates this distinction to firm performance. Beyond giving rise to a varying quit propensity, the model generates endogenously determined thresholds for firm contraction (through both layoffs and attrition), worker replacement, and firm expansion. The continuum of decision rules derived from these thresholds produces rich firm-level dynamics and quit behavior that are broadly consistent with the empirical evidence of the JOLTS data.Employment (Economic theory)

A Magnified View of the Kinematics and Morphology of RCSGA 032727-132609: Zooming in on a Merger at z=1.7

We present a detailed analysis of multi-wavelength HST/WFC3 imaging and Keck/OSIRIS near-IR AO-assisted integral field spectroscopy for a highly magnified lensed galaxy at z=1.70. This young starburst is representative of UV-selected star-forming galaxies (SFG) at z~2 and contains multiple individual star-forming regions. Due to the lensing magnification, we can resolve spatial scales down to 100pc in the source plane of the galaxy. The velocity field shows disturbed kinematics suggestive of an ongoing interaction, and there is a clear signature of a tidal tail. We constrain the age, reddening, SFR and stellar mass of the star-forming clumps from SED modelling of the WFC3 photometry and measure their H-alpha luminosity, metallicity and outflow properties from the OSIRIS data. With strong star formation driven outflows in four clumps, RCSGA0327 is the first high redshift SFG at stellar mass <10^10 M_sun with spatially resolved stellar winds. We compare the H-alpha luminosities, sizes and dispersions of the star-forming regions to other high-z clumps as well as local giant HII regions and find no evidence for increased clump star formation surface densities in interacting systems, unlike in the local Universe. Spatially resolved SED modelling unveils an established stellar population at the location of the largest clump and a second mass concentration near the edge of the system which is not detected in H-alpha emission. This suggests a picture of an equal-mass mixed major merger, which has not triggered a new burst of star formation or caused a tidal tail in the gas-poor component.Comment: 22 pages, 16 figures, accepted to Ap

Examining the Gender Wealth Gap in Germany

Welfare-oriented analyses of economic outcome measures such as income and wealth generally rest on the assumption of pooled and equally shared resources among all household members. Yet the lack of individual-level data hampers the distribution of income and wealth within the household context. Based on unique individual-level wealth data from the German Socio-Economic Panel (SOEP), this paper challenges the implicit assumption of internal redistribution by considering an alternative definition of the aggregation unit and by controlling its effect on distribution and inequality analysis. We find empirical evidence for a significant gender wealth gap of about 30,000 euros in Germany, which amounts to almost 50,000 euros for married partners. Decomposition analyses reveal that this gap is mostly driven by differences in characteristics between men and women, the most important factor being the individual’s own income and labor market experience, and particularly so at the bottom and top of the wealth distribution. However, this finding can only be shown with nonparametric decomposition techniques. Differences for those in the middle of the distribution appear to be mostly driven by the wealth function, i.e., the way in which women transform their characteristics into wealth.wealth gap, wealth inequality, gender, SOEP

Dimensional Duality

We show that string theory on a compact negatively curved manifold, preserving a U(1)^{b_1} winding symmetry, grows at least b_1 new effective dimensions as the space shrinks. The winding currents yield a "D-dual" description of a Riemann surface of genus h in terms of its 2h dimensional Jacobian torus, perturbed by a closed string tachyon arising as a potential energy term in the worldsheet sigma model. D-branes on such negatively curved manifolds also reveal this structure, with a classical moduli space consisting of a b_1-torus. In particular, we present an AdS/CFT system which offers a non-perturbative formulation of such supercritical backgrounds. Finally, we discuss generalizations of this new string duality.Comment: 25 pages, harvmac. v2: fixed typo. v3: fixed typos and added ref

Clathrin Heavy Chain subunits coordinate endo- and exocytic traffic and affect stomatal movement

The current model for vesicular traffic to and from the plasma membrane is accepted but the molecular requirements for this coordination are not well defined. We have identified the has1 mutant, which has a stomatal function defect, as a clathrin heavy chain 1 (CHC1) mutant allele and show that it has a decreased rate of endocytosis and growth defects that are shared with other chc1 mutant alleles. We used chc1 alleles and the related chc2 mutant as tools to investigate the effects clathrin defects have on secretion pathways and plant growth. We show that secretion and endocytosis at the plasma membrane is sensitive to CHC1 and CHC2 function in seedling roots, and that chc mutants have physiological defects in stomatal function and plant growth that have not been previously described. These findings suggest that clathrin supports specific functions of multiple cell types. Stomata movement and gas exchange is altered in chc mutants, indicating clathrin is important for stomatal regulation. The aberrant function of chc mutant stomata is consistent with the growth phenotypes observed under different water and light conditions, which are also similar to those of the secretory SNARE mutant, syp121. The syp121 and chc mutants have impaired endo- and exocytosis compared to wild type, indicating a link between SYP121-dependent secretion and clathrin-dependent endocytosis at the plasma membrane. Our findings provide evidence that clathrin and SYP121 functions are important for the coordination of endo- and exocytosis, and have an impact on stomatal function, gas exchange, and vegetative growth in Arabidopsis

The Survival of Planetary Nebulae in the Intracluster Medium

The stellar population stripped from galaxies in clusters evolve under the extreme conditions imposed by the intracluster (IC) medium. Intracluster stars generally suffer very high systemic velocities, and evolve within a rarefied and extremely hot IC medium. We present numerical simulations which aim to explore the evolution and survival of IC Asymptotic Giant Branch (AGB) envelopes and Planetary Nebula (PN) shells. Our models reflect the evolution of a low-mass star under the observed conditions in the Virgo IC medium. We find that the integrated hydrogen-recombination line emission of a PN is dominated by the inner dense shell, whose evolution is unaffected by the environment. Ram pressure stripping affects mainly the outermost IC PN shell, which hardly influences the emission when the PN is observed as a point source. More importantly, we find that a PN with progenitor mass of 1 Msun fades to ~30% and 10% of its maximum emission, in 5,000 and 10,000 yr respectively, disclosing an actual PN lifetime t_PN several times shorter to what is usually adopted (25,000 yr). This result affects the theoretical calculation of the luminosity-specific density of IC PNe, which scales with t_PN. For t_PN=10,000 yr, our more conservative estimate, we obtain that the luminosity-specific density of PNe is in fair agreement with the value obtained from Red Giants. With our more realistic PN lifetime we infer a higher fraction (above 15%) of IC starlight in the Virgo core than current estimates.Comment: Accepted for publication in the Astrophysical Journal 14 pages, including 2 figure

Policies to promote sustainable consumption: framework for a future-oriented evaluation

Governments are today developing policies to promote sustainable consumption, yet policy makers face many uncertainties about policy impacts. These include uncertainties about how policy instruments influence consumption patterns and about the impact of changes in consumption patterns on ecological, social and economic sustainability. An assessment of such impacts must account for the fact that consumer action is interlinked with the dynamic activities of other market players and the path-creating effects of technologies and systems of consumption and provision