An Analysis of a Cash Flow Tax for Small Business

This paper analyses whether it might be possible to design a cash flow tax (CFT) for small businesses in New Zealand to replace the existing income tax. Certainly, it is feasible to design the core rules of a CFT that applies to new small businesses. As with all examples of a CFT, these rules are very simple and easy to understand and apply. Integration with existing Goods and Services Tax and Pay-As- You-Earn systems provides significant simplification potential. Designing a set of rules to define what is a “small business” is possible, although there is a risk that these rules would involve some arbitrary features. The main barrier to a CFT relates to the transition from an income tax. Research in New Zealand and overseas has been unable to develop a workable set of rules that involve acceptable fiscal, economic and compliance costs. Designing a set of transition rules from a CFT to an income tax for businesses that cease to be small also appears to be an insurmountable task. Even if the considerable difficulties with a transition could be overcome, integrating a CFT into a world where most of the economy is subject to an income tax would also pose difficulties. There is a risk that the rules needed to maintain CFT treatment on distributions to owners and financers, while at the same time protecting the income tax base, might negate significant portions of the simplification gains from a CFT. Given these difficulties, an income tax will remain necessary, if the Government wants some progressivity in the tax system and to apply “ability to pay“ to determine tax liabilities.Cash flow tax; small business; tax policy

Power scalable implementation of artificial neural networks

As the use of Artificial Neural Network (ANN) in mobile embedded devices gets more pervasive, power consumption of ANN hardware is becoming a major limiting factor. Although considerable research efforts are now directed towards low-power implementations of ANN, the issue of dynamic power scalability of the implemented design has been largely overlooked. In this paper, we discuss the motivation and basic principles for implementing power scaling in ANN Hardware. With the help of a simple example, we demonstrate how power scaling can be achieved with dynamic pruning techniques

Advancement in Color Image Processing using Geometric Algebra

This paper describes an advancement in color image processing, using geometric algebra. This is achieved using a compact representation of vectors within $n$ dimensional space. Geometric Algebra (GA) is a preferred framework for signal representation and image representation. In this context the R, G, B color channels are not defined separately but as a single entity. As GA provides a rich set of operations, the signal and image processing operations becomes straightforward and the algorithms intuitive. From the experiments described in this paper, it is also possible to conclude that the convolution operation with the rotor masks within GA belong to a class of linear vector filters and can be applied to image or speech signals. The usefulness of the introduced approach has been demonstrated by analyzing and implementing two different types of edge detection schemes

Multiscale analysis of a spatially heterogeneous microscopic traffic model

The microscopic Optimal Velocity (OV) model is posed on an inhomogeneous ring-road, consisting of two spatial regimes which differ by a scaled OV function. Parameters are chosen throughout for which all uniform flows are linearly stable. The large time behaviour of this discrete system is stationary and exhibits three types of macroscopic traffic pattern, each consisting of plateaus joined together by sharp interfaces. At a coarse level, these patterns are determined by simple flow and density balances, which in some cases have non-unique solutions. The theory of characteristics for the classical Lighthill–Whitham PDE model is then applied to explain which pattern the OV model selects. A global analysis of a second-order PDE model is then performed in an attempt to explain some qualitative details of interface structure. Finally, the full microscopic model is analysed at the linear level to explain features which cannot be described by the present macroscopic approache

Auctioning Rough Diamonds: A Competitive Sales Process for BHP Billiton’s Ekati Diamonds

We describe a new approach for selling rough diamonds through competitive auctions. The classical approach of De Beers—giving each customer a bag of stones and a take-it-or-leave-it price—worked well in near monopoly circumstances, but is ill-suited for competitive producers. Competitive producers, like BHP Billiton, benefit from getting the diamonds to those who value them the most. Beginning in 2008, BHP Billiton introduced a simple auction process to assign its Ekati diamonds to the highest bidders at competitive market prices. A Spot auction, ten times per year, is used to establish prices for each of nineteen deals of diamonds grouped by size, color, and quality. A Term auction allows customers to lock in a long-term supply commitment at prices indexed to future Spot auctions. A Specials auction, two or three times per year, prices large stones. The auctions use an ascending-clock format in which prices increase for each product until there is no excess demand. This approach allows customers to discover market prices, while managing portfolio and budget constraints. The approach has proven remarkably successful in pricing and allocating the mine’s output even in the face of the global financial crisis.diamond auctions, market design

The 700 MHz Spectrum Auction: An Opportunity to Protect Competition In a Consolidating Industry

Auctions, spectrum auctions, market design

Auction Design for Standard Offer Service

During the transition to a competitive electricity market, when a consumer does not select an electricity provider, who provides service to the customer and at what price? An auction for this "standard offer service" is a market-based way to assign the service responsibility and to determine its price. We explore the design issues in establishing rules for such an auction.Auctions; Pricing; Electric Utilities

Managing Exchange Rate Volatility: A Comparative Counterfactual Analysis of Singapore 1994 to 2003

The objective of this paper is see how well Singapore’s exchange rate regime has coped with exchange rate volatility before and after the Asian financial crisis by comparing the performance of Singapore’s actual regime in minimising the volatility of the nominal effective exchange rate (NEER) and the bilateral rate against the US$ against some counterfactual regimes and the corresponding performance of eight other East Asian countries. In contrast to previous counterfactual exercises, such as Williamson (1998a) and Ohno (1999) which compute the weights for effective exchange rates on the basis of simple bloc aggregates, we apply a more disaggregated methodology using a larger number of trade partners. We also utilize ARCH/GARCH techniques to obtain estimates of heteroskedastic variances to better capture the time-varying characteristics of volatility for the actual and simulated exchange rate regimes. Our findings confirm that Singapore’s managed floating exchange rate system has delivered relatively low currency volatility. Although there are gains in volatility reduction for all countries in the sample from the adoption of either a unilateral or common basket peg, particularly post-crisis, these gains are relatively low for Singapore, largely because low actual volatility. Finally, there are additional gains for nondollar peggers from stabilizing intra-EA exchange rates against the dollar if they were to adopt a basket peg, especially post-crisis, but the gains for Singapore are again relatively modest.East Asia, exchange rates, counterfactuals.