The determinants of tax haven FDI

This paper examines the determinants of a multinational enterprise’s (MNEs) decision to set up tax haven subsidiaries. We adapt the Firm-specific advantage–Country-specific advantage (FSA–CSA) framework and construct a number of empirically testable hypotheses. The analysis is based on a database covering 14,209 MNEs in twelve OECD countries. We find that the variety of capitalism of a MNEs home location and the level of technological intensity has a strong impact on this decision. We also find that the home country corporate tax rate has a minimal impact. This suggests that corporate tax liberalisation is unlikely to deter MNEs from undertaking this activity.

Fiscal Divergence and Business Cycle Synchronization: Irresponsibility is Idiosyncratic

Using a panel of 21 OECD countries and 40 years of annual data, we find that countries with similar government budget positions tend to have business cycles that fluctuate more closely. That is, fiscal convergence (in the form of persistently similar ratios of government surplus/deficit to GDP) is systematically associated with more synchronized business cycles. We also find evidence that reduced fiscal deficits increase business cycle synchronization. The Maastricht "convergence criteria," used to determine eligibility for EMU, encouraged fiscal convergence and deficit reduction. They may thus have indirectly moved Europe closer to an optimum currency area, by reducing countries’ abilities to create idiosyncratic fiscal shocks. Our empirical results are economically and statistically significant, and robust.

A fiskális divergencia és a konjunktúraciklusok együttmozgása - a felelőtlen fiskális politika az aszimmetrikus sokkok forrása (Fiscal divergence and business cycle synchronization: irresponsibility is idiosyncratic)

A világ 115 országának - köztük 21 OECD-tagország - 40 évnyi adatait vizsgálva, arra a következtetésre jutottunk, hogy a hasonló állami költségvetési pozíciójú országok konjunktúraciklusai között szorosabb együttmozgás mutatható ki. Azaz, a fiskális konvergenciát (amelyet a költségvetési egyenleg GDP-hez viszonyt arányának konvergenciájaként definiáltunk) összehangoltabb konjunktúraciklusokkal lehet összefüggésbe hozni. Kutatásaink során arra is találtunk bizonyítékot, hogy a kisebb mértékű költségvetési deficitek növelik a konjunktúraciklusok együttmozgását. A maastrichti konvergenciakritériumok - amelyek az európai monetáris unió követelményeinek való megfelelést hivatottak meghatározni - a fiskális konvergenciát és a költségvetési deficit csökkentését ösztönözték, s ezzel közvetett módon hozzásegítették Európát egy optimális valutaövezet létrehozásához azáltal, hogy csökkent az egyes országok lehetősége a felelőtlen fiskális politika által gerjesztett sokkhatások létrehozására. Az általunk feltárt empirikus eredmények gazdasági és statisztikai szempontból is szignifikánsak és robusztusak. _____ Using panels of 115 countries of world – including 21 OECD countries – and 40 years of annual data, the authors find that countries with similar government budget positions tend to have business cycles that fluctuate more closely. Thus fiscal convergence (in the form of persistently similar ratios of government surplus/deficit to GDP) is systemati-cally associated with more strongly synchronized business cycles. Evidence is also found that reduced fiscal deficits increase business-cycle synchronization. The Maastricht "con-vergence criteria", used to determine eligibility for EMU, encouraged fiscal convergence and deficit reduction. So they may, indirectly, have moved Europe closer to an optimum currency area, by reducing countries abilities to create idiosyncratic fiscal shocks. The empirical results of the study are economically and statistically significant, and robust.

Rethinking Care Through Social Reproduction: Articulating Circuits of Migration

Care has come to dominate much feminist research on globalized migrations and the transfer of labor from the South to the North, while the older concept of reproduction had been pushed into the background but is now becoming the subject of debates on the commodification of care in the household and changes in welfare state policies. This article argues that we could achieve a better understanding of the different modalities and trajectories of care in the reproduction of individuals, families, and communities, both of migrant and nonmigrant populations by articulating the diverse circuits of migration, in particular that of labor and the family. In doing this, I go back to the earlier North American writing on racialized minorities and migrants and stratified social reproduction. I also explore insights from current Asian studies of gendered circuits of migration connecting labor and marriage migrations as well as the notion of global householding that highlights the gender politics of social reproduction operating within and beyond households in institutional and welfare architectures. In contrast to Asia, there has relatively been little exploration in European studies of the articulation of labor and family migrations through the lens of social reproduction. However, connecting the different types of migration enables us to achieve a more complex understanding of care trajectories and their contribution to social reproduction.

Increased water charges improve efficiency and equity in an irrigation system

Conventional wisdom in many agricultural systems across the world is that farmers cannot, will not, or should not pay the full costs associated with surface water delivery. Across Organisation for Economic Co-operation and Development (OECD) countries, only a handful can claim complete recovery of operation, maintenance, and capital costs; across Central and South Asia, fees are lower still, with farmers in Nepal, India, and Kazakhstan paying fractions of a U.S. penny for a cubic meter of water. In Pakistan, fees amount to roughly USD 1-2 per acre per season. However, farmers in Pakistan spend orders of magnitude more for diesel fuel to pump groundwater each season, suggesting a latent willingness to spend for water that, under the right conditions, could potentially be directed toward water-use fees for surface water supply. Although overall performance could be expected to improve with greater cost recovery, asymmetric access to water in canal irrigation systems leaves the question open as to whether those benefits would be equitably shared among all farmers in the system. We develop an agent-based model (ABM) of a small irrigation command to examine efficiency and equity outcomes across a range of different cost structures for the maintenance of the system, levels of market development, and assessed water charges. We find that, robust to a range of different cost and structural conditions, increased water charges lead to gains in both efficiency and concomitant improvements in equity as investments in canal infrastructure and system maintenance improve the conveyance of water resources further down watercourses. This suggests that, under conditions in which (1) farmers are currently spending money to pump groundwater to compensate for a failing surface water system, and (2) there is the possibility that through initial investment to provide perceptibly better water supply, genuine win-win solutions can be attained through higher water-use fees to beneficiary farmers.

Jovens NEET: o caso português

O fenómeno NEET- “Not in Employment, Education or Training”, jovens que não estudam, não trabalham e não frequentam qualquer formação, constitui um problema social comum ao espaço europeu, onde, segundo o Eurostat há 14 milhões de jovens excluídos do mercado de trabalho e do sistema de educação e formação. A perda económica resultante desde afastamento é estimada em 153 mil milhões de euros por ano, 1,2% do PIB da União Europeia. Apresenta-se uma análise crítica do conceito NEET e a sua dimensão europeia. Em Portugal a “Geração Nem-Nem” tem vindo a crescer significativamente desde 2008 e atingiu um valor recorde em 2012 com 434 mil jovens inativos, colocando Portugal entre os 10 países da OCDE com maior percentagem de NEET. Procura-se traçar um diagnóstico do perfil destes jovens, compreender quem são e quanto custa ao país o seu afastamento da escola e do mercado de trabalho. Por fim, abordam-se as principais estratégias políticas que vêm sendo adotadas para reduzir o número de NEET, com a criação de um conjunto de programas de apoio à transição entre o sistema de educação e formação e o mercado de trabalho, estímulos à criação de emprego e uma aposta no reforço do ensino profissional e da aprendizagem dual. Conclui-se que o fenómeno NEET em Portugal tem registado uma tendência crescente e resulta em grande medida do aumento exponencial das taxas de desemprego jovem que em 2013 atingiram os 40%, predominando jovens com um nível de escolaridade relativamente baixo. Contudo, as estatísticas demonstram que o problema também cresceu nos últimos anos entre os que têm formação superior, o que revela um problema estrutural que dificulta a transição da educação para o mercado de trabalho, mesmo entre os mais qualificados.

Population ageing and monetary policy

Mestrado em Economia Monetária e Financeira

Foreign direct investment determinants revisited in the context of global value chains

In this paper, we aim at contributing to the new field of research that intends to bring up-to-date the tools and statistics currently used to look to the current reality given by Global Value Chains (GVC) in international trade and Foreign Direct Investment (FDI). Namely, we make use of the most recent data published by the World Input-Output Database to suggest indicators to measure the participation and net gains of countries by being a part of GVC; and use those indicators in a pooled-regression model to estimate determinants of FDI stocks in Organization for Economic Co-operation and Development (OECD)-member countries. We conclude that one of the measures proposed proves to be statistically significant in explaining the bilateral stock of FDI in OECD countries, meaning that the higher the transnational income generated between two given countries by GVC, taken as a proxy to the participation of those countries in GVC, the higher one could expect the FDI entering those countries to be. The regression also shows the negative impact of the global financial crisis that started in 2009 in the world’s bilateral FDI stocks and, additionally, the particular and significant role played by the People’s Republic of China in determining these stocks.

La détermination des droits et des obligations relatifs à l'aide sociale en Allemagne : le cas des individus seuls aptes à l'emploi

Ce mémoire vise à comprendre la détermination des droits et des obligations relatifs aux individus seuls aptes à l’emploi bénéficiant de l’aide sociale allemande entre 1990 et 2012. Tout d’abord, il passe en revue les principaux mécanismes formels de fixation et d’actualisation des droits monétaires présents dans la plupart des pays de l’OCDE et montre par quels moyens l’Allemagne détermine la générosité des revenus de l’aide sociale. Soulevant le caractère plutôt arbitraire de ces mécanismes, il poursuit en soutenant que la générosité relative des droits et des obligations des individus seuls aptes à l’emploi peut principalement s’expliquer en des termes de conditionnalité et de mérite. Par le biais d’une revue de la littérature sur le sujet, le mémoire illustre comment les dynamiques catégorielles et la construction des programmes de dernier recours allemands en viennent à refléter une hiérarchie implicite du mérite expliquant à la fois la générosité plus faible des droits monétaires et la plus grande conditionnalité des droits sociaux visant les bénéficiaires seuls aptes à l’emploi. Finalement, il soutient que la construction du régime concernant les individus aptes à l’emploi en Allemagne doit se comprendre selon l’utilisation des droits et des obligations en tant que levier de régulation de l’individu et du marché du travail. Dans cette optique, le mémoire montre que les réformes Hartz du marché du travail ont non seulement formalisé le tournant pris vers l’activation du sans-emploi en Allemagne, mais que la construction particulière du nouveau régime de droits et d’obligations visant les individus aptes reflète ultimement l’objectif de diminution du chômage via la création d’emplois dans le secteur des bas salaires.

Prospect theory and the effects of bankruptcy laws on entrepreneurial aspirations

We apply prospect theory to explain how personal and corporate bankruptcy laws affect risk perceptions of entrepreneurs at time of entry and therefore their growth ambitions. Previous theories have reached ambiguous conclusions as to whether countries with more debtor-friendly bankruptcy laws (i.e. laws that are more forgiving towards debtors in bankruptcy proceedings) are likely to have more entrepreneurs, or whether, creditorfriendly regimes have positive effects on new ventures via enhanced incentives for the supply of credit to entrepreneurs. Responding to this ambiguity, we apply prospect theory to propose that entrepreneurs do not attach the same significance to different elements of bankruptcy codes—and to explain which aspects of debtor-friendly bankruptcy laws matter more to entrepreneurs. Based on this, we derive and confirm hypotheses about the impact of aspects of bankruptcy codes on entrepreneurial activity using the Global Entrepreneurship Monitor combined with data on both personal and corporate bankruptcyregulations for 15 developed OECD countries. We use multilevel random coefficient logistic regressions to take account of the hierarchical nature of the data (country and individual levels). Because entrepreneurs and creditors are sensitive to different elements of the codes, there is scope for optimisation of the legal design of bankruptcy law to achieve both an adequate supply of credit and to encourage high-ambition entrepreneurship.

La détermination des droits et des obligations relatifs à l'aide sociale en Allemagne : le cas des individus seuls aptes à l'emploi

Ce mémoire vise à comprendre la détermination des droits et des obligations relatifs aux individus seuls aptes à l’emploi bénéficiant de l’aide sociale allemande entre 1990 et 2012. Tout d’abord, il passe en revue les principaux mécanismes formels de fixation et d’actualisation des droits monétaires présents dans la plupart des pays de l’OCDE et montre par quels moyens l’Allemagne détermine la générosité des revenus de l’aide sociale. Soulevant le caractère plutôt arbitraire de ces mécanismes, il poursuit en soutenant que la générosité relative des droits et des obligations des individus seuls aptes à l’emploi peut principalement s’expliquer en des termes de conditionnalité et de mérite. Par le biais d’une revue de la littérature sur le sujet, le mémoire illustre comment les dynamiques catégorielles et la construction des programmes de dernier recours allemands en viennent à refléter une hiérarchie implicite du mérite expliquant à la fois la générosité plus faible des droits monétaires et la plus grande conditionnalité des droits sociaux visant les bénéficiaires seuls aptes à l’emploi. Finalement, il soutient que la construction du régime concernant les individus aptes à l’emploi en Allemagne doit se comprendre selon l’utilisation des droits et des obligations en tant que levier de régulation de l’individu et du marché du travail. Dans cette optique, le mémoire montre que les réformes Hartz du marché du travail ont non seulement formalisé le tournant pris vers l’activation du sans-emploi en Allemagne, mais que la construction particulière du nouveau régime de droits et d’obligations visant les individus aptes reflète ultimement l’objectif de diminution du chômage via la création d’emplois dans le secteur des bas salaires.

El efecto de la definición regulatoria de banda ancha sobre la difusión y la competencia del mercado de servicios de Internet fijo en Colombia

A partir de la dinámica evolutiva de la economía de las Tecnologías de la Información y las Comunicaciones y el establecimiento de estándares mínimos de velocidad en distintos contextos regulatorios a nivel mundial, en particular en Colombia, en el presente artículo se presentan diversas aproximaciones empíricas para evaluar los efectos reales que conlleva el establecimiento de definiciones de servicios de banda ancha en el mercado de Internet fijo. Con base en los datos disponibles para Colombia sobre los planes de servicios de Internet fijo ofrecidos durante el periodo 2006-2012, se estima para los segmentos residencial y corporativo el proceso de difusión logístico modificado y el modelo de interacción estratégica para identificar los impactos generados sobre la masificación del servicio a nivel municipal y sobre las decisiones estratégicas que adoptan los operadores, respectivamente. Respecto a los resultados, se encuentra, por una parte, que las dos medidas regulatorias establecidas en Colombia en 2008 y 2010 presentan efectos significativos y positivos sobre el desplazamiento y el crecimiento de los procesos de difusión a nivel municipal. Por otra parte, se observa sustituibilidad estratégica en las decisiones de oferta de velocidad de descarga por parte de los operadores corporativos mientras que, a partir del análisis de distanciamiento de la velocidad ofrecida respecto al estándar mínimo de banda ancha, se demuestra que los proveedores de servicios residenciales tienden a agrupar sus decisiones de velocidad alrededor de los niveles establecidos por regulación.

la influencia de la felicidad en las decisiones de inversión de activos de largo plazo para una muestra de siete gerentes financieros en la ciudad de Bogotá en el año 2016.

El presente artículo contribuye con la investigación de las Finanzas Corporativas del Comportamiento, rama de las finanzas corporativas que considera que el individuo que toma decisiones financieras no es completamente racional y que por hecho existen sesgos psicológicos que influyen en sus decisiones. Este documento se enfoca, desde el punto de vista conceptual y también mediante el análisis de un estudio de campo, en la influencia de la felicidad en las decisiones de inversión en activos de largo plazo para un grupo de siete gerentes ubicados en la ciudad de Bogotá en el año 2016. En el documento se abarca el concepto general de las finanzas corporativas del comportamiento, se define la felicidad y se presentan sub-variables determinantes para la felicidad del individuo como lo son: salud, balance vida/trabajo, educación y habilidades, conexiones sociales y medio ambiente. Finalmente se presenta cómo éstas afectan a los gerentes financieros en sus decisiones de acuerdo a la investigación realizada.

Overview of results focused management and budgeting in OECD member countries

Includes bibliography

Budget reform in OECD member countries: common trends

Includes bibliography