The optimal price of money

The optimal inflation tax is computed in monetary models where money is costly to supply. The models are simple general equilibrium models with money in the utility function or a transactions technology. The inflation tax is a means of raising taxes to finance exogenous government expenditures. The alternative means of revenue are also distortionary. The main point of this article is to show that the robustness of the optimality of the Friedman rule, of a zero nominal interest rate, resides in the assumption that money is produced at zero cost.Money ; Interest rates ; Inflation (Finance)

Prospects for γγ→H\gamma \gamma \to H and γγ→W+W−\gamma \gamma \to W^{+}W^{-} measurements at the FCC-ee

We study the possibilities for the measurement of two-photon production of the Higgs boson (in the $b \bar{b}$ decay channel), and of $W^{+}W^{-}$ pairs (decaying into four jets) in $e^{+}e^{-}$ collisions at the the Future Circular Collider (FCC-ee). The processes are simulated with the PYTHIA and MADGRAPH 5 Monte Carlo codes, using the effective photon approximation for the $e^{+}e^{-}$ photon fluxes, at center-of-mass energies $\sqrt{s} =$ 160 GeV and 240 GeV. The analyses include electron-positron tagging, realistic acceptance and reconstruction efficiencies for the final-state jets, and selection criteria to remove the backgrounds. Observation of both channels is achievable with the expected few ab$^{-1}$ integrated luminosities at FCC-ee.Comment: Proceedings of the conference PHOTON 2015: International Conference on the Structure and the Interactions of the Photon including the 21th International Workshop on Photon-Photon Collisions and the International Workshop on High Energy Photon Colliders, held at Budker Institute of Nuclear Physics (BINP), Siberian Branch of Russian Academy of Science, Novosibirsk, Russia, from 15 to 19 June, 201

The optimal inflation tax

We determine the second best rule for the inflation tax in monetary general equilibrium models where money is dominated in rate of return. The results in the literature are ambiguous and inconsistent across different monetary environments. We compare the derived optimal inflation tax solutions across the different environments and find that Friedman's policy recommendation of a zero nominal interest rate is the right one.Inflation (Finance) ; Taxation

Universal Algebra of a Hom-Lie Algebra and group-like elements

We construct the universal enveloping algebra of a Hom-Lie algebra and endow it with a Hom-Hopf algebra structure. We discuss group-like elements that we see as a Hom-group integrating the initial Hom-Lie algebra

The optimal mix of taxes on money, consumption and income

In this paper we determine the optimal combination of taxes on money, consumption and income in transaction technology models. We show that the optimal policy does not tax money, regardless of whether the government can use the income tax, the consumption tax, or the two taxes jointly. These results are at odds with recent literature. We argue that the reason for this divergence is an inappropriate specification of the transaction technology adopted in the literature. JEL Classification: E31, E41, E58, E62

A time-varying markov-switching model for economic growth

This paper investigates economic growth’s pattern of variation across and within countries usinga Time-Varying Transition Matrix Markov-Switching Approach. The model developed follows theapproach of Pritchett (2003) and explains the dynamics of growth based on a collection of differentstates, each of which has a sub-model and a growth pattern, by which countries oscillate over time. Thetransition matrix among the different states varies over time, depending on the conditioning variablesof each country, with a linear dynamic for each state. We develop a generalization of the Diebold’sEM Algorithm and estimate an example model in a panel with a transition matrix conditioned onthe quality of the institutions and the level of investment. We found three states of growth: stablegrowth, miraculous growth, and stagnation. The results show that the quality of the institutions is animportant determinant of long-term growth, whereas the level of investment has varying roles in thatit contributes positively in countries with high-quality institutions but is of little relevance in countrieswith medium- or poor-quality institutions.

Sharpening the shape analysis for higher-dimensional operator searches

When the Standard Model is interpreted as the renormalizable sector of a low-energy effective theory, the effects of new physics are encoded into a set of higher dimensional operators. These operators potentially deform the shapes of Standard Model differential distributions of final states observable at colliders. We describe a simple and systematic method to obtain optimal estimations of these deformations when using numerical tools, like Monte Carlo simulations. A crucial aspect of this method is minimization of the estimation uncertainty: we demonstrate how the operator coefficients have to be set in the simulations in order to get optimal results. The uncertainty on the interference term turns out to be the most difficult to control and grows very quickly when the interference is suppressed. We exemplify our method by computing the deformations induced by the ${\cal O}_{3W}$ operator in $W^+W^-$ production at the LHC, and by deriving a bound on ${\cal O}_{3W}$ using $8$ TeV CMS data.Comment: 21 pages, 4 figures. v2: Minor corrections, references added, matches journal versio

Relaxation and Emittance Growth of a Thermal Charged-Particle Beam

We present a theory that allows us to accurately calculate the distribution functions and the emittance growth of a thermal charged-particle beam after it relaxes to equilibrium. The theory can be used to obtain the fraction of particles, which will evaporate from the beam to form a halo. The calculated emittance growth is found to be in excellent agreement with the simulations.Comment: 3 pages, 3 figure