The tax system and the financial crisis

This paper investigates the effects of the tax system on the economic factors that triggered the financial crisis. We examine three cases in which the tax regime interacted with these factors, reinforcing them. First, we focus on the taxation of residential building: while the importance of capital gains taxes is disputed, the deductibility of mortgage interest may have contributed to the financial crisis by creating some of the raw materials for the securitization industry. Second, a narrow perspective on the tax treatment, together with specific provisions, may have fostered performance-based remuneration of managers, resulting in overemphasis of short-term profitability and incentive to excessive risk-taking. Third, the securitization process, which played a key role in the outbreak of the financial crisis, was accompanied by opportunities for tax arbitrage and reduction of the overall tax wedge paid by investors, through offset of incomes that are ordinarily taxed at different rates; a de facto exemption of CDS premiums received by non-residents supplemented the tax arbitrage.taxation, financial crisis, housing market, stock options, securitization, credit default swaps

The Role of Housing Tax Provisions in the 2008 Financial Crisis

The 2008 financial crisis is the worst economic crisis since the Great Depression of 1929. It has been characterised by a housing bubble in a context of rapid credit expansion, high risk-taking and exacerbated financial leverage, ending into deleveraging and credit crunch when the bubble burst. This paper discusses the interactions between housing tax provisions and the financial crisis. In particular, it reviews the existing evidence on the links between capital gains taxation of houses, interest mortgage deductibility and characteristics of the crisis.financial crisis, tax policy, housing, interest deductibility, capital gains

The Physical Properties and Effective Temperature Scale of O-type Stars as a Function of Metallicity. III. More Results from the Magellanic Clouds

In order to better determine the physical properties of hot, massive stars as a function of metallicity, we obtained very high SNR optical spectra of 26 O and early B stars in the Magellanic Clouds. These allow accurate modeling even in cases where the He I 4471 line has an equivalent width of only a few tens of mA. The spectra were modeled with FASTWIND, with good fits obtained for 18 stars; the remainder show signatures of being binaries. We include stars in common to recent studies to investigate possible systematic differences. The "automatic" FASTWIND modeling method of Mokiem and collaborators produced temperatures 1100 K hotter on the average, presumably due to the different emphasis given to various temperature-sensitive lines. More significant, however, is that the automatic method always produced some "best" answer, even for stars we identify as composite (binaries). The temperatures found by the TLUSTY/CMFGEN modeling of Bouret, Heap, and collaborators yielded temperatures 1000 K cooler than ours, on average. Significant outliers were due either to real differences in the data (some of the Bouret/Heap data were contaminated by moonlight continua) or the fact we could detect the HeI line needed to better constrain the temperature. Our new data agrees well with the effective temperature scale we presented previously. We confirm that the "Of" emission-lines do not track luminosity classes in the exact same manner as in Milky Way stars. We revisit the the issue of the "mass discrepancy", finding that some of the stars in our sample do have spectroscopic masses that are significantly smaller than those derived from stellar evolutionary models. We do not find that the size of the mass discrepancy is simply related to either effective temperature or surface gravity.Comment: ApJ, in pres

Hot probe measurements on neutron irradiated, isotope enriched ZnO nanorods

We report on neutron transmutation doping (NTD) of isotopically (64Zn) enriched ZnO nanorods to produce material with holes as the majority mobile carrier. Nanorods of ZnO enriched with 64Zn were synthesised and the abundance of 64Zn in these samples is ∼ 71%, compared to the natural abundance of ∼ 49 %. The enriched material was irradiated with thermal neutrons which converts some 64Zn to 65Zn. The 65Zn decays to 65Cu with a half-life of 244 days and the Cu can act as an acceptor dopant. After 690 days, a hot probe technique was used to determine the majority charge carriers in non-irradiated and neutron irradiated nanorod samples. Non-irradiated samples were measured to be to have electrons as the majority mobile carrier and the irradiated samples were measured to have holes as the majority mobile carrier