Essays on household taxation and competition between heterogeneous firms

Essa tese é constituída por três artigos: "Tax Filing Choices for the Household", "Optimal Tax for the Household: Collective and Unitary Approaches" e "Vertical Differentiation and Heterogeneous Firms".

Accountability and yardstick competition in the public provision of education

This paper explores the institutional change introduced by the public disclosure of an education development index (IDEB, Basic Education Development Index) in 2007 to identify the e ect of education accountability on yardstick competition in education spending for Brazilian municipalities. Our results are threefold. First, political incentives are pervasive in setting the education expenditures. The spatial strategic behavior on education spending is estimated lower for lame-ducks and for those incumbents with majority support at the city council. This suggests a strong relation between commitment and accountability which reinforces yardstick competition theory. Second, we nd a minor reduction (20%) in spatial interaction for public education spending after IDEB's disclosure | compared to the spatial correlation before the disclosure of the index. This suggests that public release of information may decrease the importance of the neighbors` counterpart information on voter`s decision. Third, exploring the discontinuity of IDEB`s disclosure rule around the cut-o of 30 students enrolled in the grade under assessment, our estimates suggest that the spatial autocorrelation | and hence yardstick competition | is reduced in 54%. Finally, an unforeseen result suggests that the disclosure of IDEB increases expenditures, more than 100% according to our estimates.

Creditor's protection and bank loans: lack of competition hamprers bankruptcy reform's effects

This dissertation investigates how credit institutions’ market power limits the effects of creditor protection rules on the interest rate and the spread of bank loans. We use the Brazilian Bankruptcy Reform of June/2005 (BBR) as a legal event affecting the institutional environment of the Brazilian credit market. The law augments creditor protection and aims to improve the access of firms to the credit market and to reduce the cost of borrowing. Either access to credit or the credit cost are also determined by bank industry competition and the market power of suppliers of credit. We derive a simple economic model to study the effect of market power interacting with cost of lending. Using an accounting and operations dataset from July/2004 to December/2007 provided by the Brazilian Central Bank, we estimate that the lack of competition in the bank lending industry hinders the potential reducing effect of the BBR on the interest rate of corporate loans by approximately 30% and on the spread by approximately 23%. We also find no statistical evidence that the BBR affected the concentration level of the Brazilian credit market. We present a brief report on bankruptcy reforms around the world, the changes in the Brazilian legislation and on some recent related articles in our introductory chapter. The second chapter presents the economic model and the testable hypothesis on how the lack of competition in the lending market limits the effects of improved creditor protection. In this chapter, we introduce our empirical strategy using a differences-in-differences model and we estimate the limiting effect of market power on the BBR’s potential to reduce interest rates and on the spread of bank loans. We use the BBR as an exogenous event that affects collateralized corporate loans (treatment group) but that does not affect clean consumer loans (control group) to identify these effects, using different concentration measures. In Chapter 3, we propose a two-stage empirical strategy to handle the H–Statistics proposed by Panzar and Rosse as a measure of market competition. We estimate the limiting effects of the lack of competition in replacing the concentration statistics by the H–Statistics. Chapter 4 presents a structural break test of the concentration index and checks if the BBR affects the dynamic evolution of the concentration index.

Net Neutrality Compendium: Human Rights, Free Competition and the Future of the Internet

The ways in which Internet traffic is managed have direct consequences on Internet users’ rights as well as on their capability to compete on a level playing field. Network neutrality mandates to treat Internet traffic in a non-discriminatory fashion in order to maximise end users’ freedom and safeguard an open Internet. This book is the result of a collective work aimed at providing deeper insight into what is network neutrality, how does it relates to human rights and free competition and how to properly frame this key issue through sustainable policies and regulations. The Net Neutrality Compendium stems from three years of discussions nurtured by the members of the Dynamic Coalition on Network Neutrality (DCNN), an open and multistakeholder group, established under the aegis of the United Nations Internet Governance Forum (IGF).

Do brazilian states engage in the fiscal war of ports? An empiric study of tax competition and an analysis of a natural experiment: the brazilian senate resolution 13/2012

O fim do ano de 2014 marcou o segundo aniversário da Resolução 13/2012 (R13) do Senado brasileiro. Grosso modo, R13 constituiu-se de um normativo do Senado cujo objetivo era o de por um fim na Guerra Fiscal dos Portos (FWP), uma competição fiscal entre os estados que se dá através da concessão de benefícios fiscais sobre operações interestaduais com mercadorias importadas de modo a atrair empresas importadoras para o território do estado concedente. R13 diminuiu o nível da tributação sobre tais operações, esperando com isso diminuir os lucros auferidos e a propensão das firmas de aceitarem tais regimes especiais de incentivação fiscal. Nada obstante, R13 gerou uma grande discussão sobre se os benefícios da atração de investimentos para um estado em particular superariam ou não os custos que esse estado incorreria em renunciar receitas tributárias em razão concessão desses benefícios fiscais. O objetivo do presente trabalho é o de dar uma contribuição a essa discussão, testando se um comportamento de interação estratégica entre estados, tal como aquele que supostamente ocorre no contexto da FWP, de fato emerge dos dados de importação coletados de janeiro de 2010 a maio de 2015, e, também, testando se a R13 de fato afetou tal comportamento de interação estratégica. Utiliza-se aqui um modelo de econometria espacial, no qual se especifica uma matriz de pesos que agrega o nível de importação das jurisdições concorrentes, organizando os dados em um painel de efeitos fixos. Os resultados sugerem que existe um comportamento de interação estratégica entre os estados e que a R13 de fato impactou tal comportamento.

The Limits of political compromise: debt ceilings and political competition

We study the desirability of limits on the public debt and of political competition in an economy where political parties alternate in office. Due to rent-seeking motives, incumbents have an incentive to set public expenditures above the socially optimal level. Parties cannot commit to future policies, but they can forge a political compromise where each party curbs excessive spending when in office if it expects future governments to do the same. In contrast to the received literature, we find that strict limits on government borrowing can exacerbate political-economy distortions by rendering a political compromise unsustainable. This tends to happen when political competition is limited. Conversely, a tight limit on the public debt fosters a compromise that yields the efficient outcome when political competition is vigorous, saving the economy from immiseration. Our analysis thus suggests a legislative tradeoff between restricting political competition and constraining the ability of governments to issue debt.

Exclusivity contracts and competition : the case of the Brazilian fuels market

Exclusivity contracts can help stations by providing brand-value that allows them to obtain higher profits, relative to unbranded retailers. However, branded retailers may have a stronger negative effect over its competitors’ profits. It is not clear which one of these two effects dominates (brand-value vs competition effect). Therefore, the impact of exclusivity over the number of participants in the downstream market is not determined. In this paper, I empirically study the effects of exclusivity agreements on competition in the Brazilian gasoline sector. In order to do so, I estimate an entry model of endogenous product-type choices using data of retailers’ locations and contract choices along with data from the 2010 Brazilian Census. I use my estimates to simulate entry decisions under two counterfactual scenarios: i) mandatory exclusivity and ii) no exclusivity.

A model of competition and interbank network formation

This work aims to understand the interaction between competition and network formation in the banking market. Combining Matutes and Padilla (1994) and Matutes and Vives (2000), we build a model of imperfect bank competition for deposits in which an interbank relationship network is a key strategic decision: it affects banks’ profit and risk position. The competition level exerts influence in the banking network structure since it affects the network outcomes. As result, we have that different competition levels imply different network topologies. Specifically, greater competition imply denser networks. Finally, when we allow for the possibility of collusion, the denser network can come out in the least competitive environment.

EFFECTS of MINERAL NUTRITION on INTER- and INTRASPECIFIC INTERFERENCE of PEANUT (Arachis hypogaea L.) and HAIRY BEGGARTICKS (Bidens pilosa L.)

The present work was carried out to study the effects of mineral nutrition on peanut (Arachis hypogaea L) cv. IAC Runner-886 and hairy beggarticks (Bidens pilosa L) growth, when submitted to inter- and intraspecific competition. The treatments consisted of two peanut plants per pot, two hairy beggarticks per pot and one plant of each species per pot. The plants were nourished with Hoagland and Arnon (1950) complete solution, or without potassium, or without phosphorus or without nitrogen. Sixty days after planting, no inter- or intraspecific competition effect on growth characteristics of peanut was verified and nutrition was not a limiting factor to the culture. No interaction between competition and nutrition effects was observed for both species. The weed suffered more negative effects from intraspecific competition and nutrition. The absence of N had a pronounced effect compared to the other elements, resulting in a reduction in all the evaluated characteristics. The deficiency of nutrients and competition affected the weed more than the crop, showing that peanut was more competitive than hairy beggarticks.

Minimizing inter-genotypic competition effects to predict genetic values and selection in forestry genetic tests

The effect of competition is an important source of variation in breeding experiments. This study aimed to compare the selection of plants of open-pollinated families of Eucalyptus with and without the use of competition covariables. Genetic values were determined for each family and tree and for the traits height, diameter at breast height and timber volume in a randomized block design, resulting in the variance components, genetic parameters, selection gains, effective size and selection coincidence, with and without the use of covariables. Intergenotypic competition is an important factor of environmental variation. The use of competition covariables generally reduces the estimates of variance components and influences genetic gains in the studied traits. Intergenotypic competition biases the selection of open-pollinated eucalypt progenies, and can result in an erroneous choice of superior genotypes; the inclusion of covariables in the model reduces this influence.

Accumulation of nutrients in sweet peppers cultivated in coconut fiber

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Nutrição mineral do mamoeiro (Carica papaya L): VI - Influência da calagem e de níveis de calcário na cova, sobre a concentração de nutrientes nas folhas e o desenvolvimento inicial da planta

Com o objetivo de estudar o efeito da calagem e de diferentes quantidades de calcário na cova de plantio sobre o desenvolvimento inicial do mamoeiro e a concentração de nutrientes nas folhas, desenvolveu-se o presente trabalho na Estação Experimental Presidente Médici, município de Botucatu, SP. Dentre os resultados obtidos constatou-se que: (a) A calagem com calcário dolomítico favoreceu o desenvolvimento inicial do mamoeiro; (b) A adição de calcário dolomítico na cova de plantio não teve nenhum efeito sobre o desenvolvimento inicial do mamoeiro; (c) A calagem realizada durante o preparo do solo para o plantio teve maior influência nas variações das concentrações dos nutrientes nas folhas do mamoeiro do que a adição de calcário na cova por ocasião da adubação fundamental; (d) Na competição iônica dos nutrientes catiónicos Ca e Mg, o Mg foi mais efetivo.

Acúmulo de nitrogênio, fósforo e potássio pelo algodoeiro sob irrigação cultivado em sistemas convencional e adensado

O adensamento da cultura do algodão aumenta a competição entre plantas por recursos, como luz, nutrientes e água; logo, o período de florescimento é reduzido e, consequentemente, a marcha de acúmulo de matéria seca é alterada. O objetivo deste trabalho foi determinar a marcha de absorção de N, P e K pelo algodoeiro, identificando a época de maior absorção e a quantidade absorvida e exportada em espaçamentos adensado (48 cm - 20,58 plantas m-2), intermediário (75 cm - 13,30 plantas m-2) e convencional (96 cm - 10,39 plantas m-2). Foram amostradas três plantas úteis por parcela aos 46, 69, 99, 139, 148 e 166 dias após a emergência (DAE), em que foram determinados o acúmulo de matéria seca, N, P e K. O acúmulo de matéria seca nas plantas cultivadas no espaçamento de 48 cm foi maior no início do desenvolvimento, igualando-se às demais ao final do ciclo, o que resultou em maior acúmulo de N entre os 69 e 99 DAE, no menor espaçamento. O adensamento antecipa o pico de absorção de nutrientes, sugerindo a antecipação das adubações de cobertura com N e K no algodoeiro cultivado nesse sistema. Para condições de fertilidade média/alta, a dose de nutrientes a ser aplicada não precisaria ser alterada em função do aumento da densidade de plantas, pois não há variação nas quantidades de N, P e K exportados por kg de algodão produzido, em fibra ou em caroço.

Biomass production and accumulation of nutrients in shoots of Giant Guinea sorghum plants

Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP)

Disponibilidade de nutrientes no solo: decomposição e liberação de compostos orgânicos de resíduos vegetais

O objetivo principal desta revisão foi reunir informações a respeito da ação de compostos orgânicos produzidos por plantas na disponibilidade de nutrientes nos solos, principalmente sobre os cátions Ca, Mg e K e sobre o ânion fosfato. O sistema de cultivo adotado ocasiona mudanças nas propriedades químicas e físicas do solo, especialmente na disponibilidade de nutrientes e condicionamento físico do solo. Tem-se observado o acúmulo de nutrientes nas camadas superficiais do solo no sistema de semeadura direta, pelo não-revolvimento do solo e pela deposição de resíduos de culturas na superfície. Os ácidos orgânicos provenientes de plantas podem interagir com a fase sólida e ocupar os sítios de adsorção de nutrientes, competindo diretamente com eles e aumentando sua disponibilidade no solo. A adição de resíduos vegetais pode promover, antes da humificação, a elevação do pH, por promover complexação de H e Al com compostos do resíduo vegetal, deixando Ca, Mg e K mais livres em solução, o que pode ocasionar aumento na saturação da CTC por estes cátions de reação básica. Também é normal observar o aumento na disponibilidade de P no solo com a adição de resíduos vegetais, tanto pelo P presente no resíduo como por competição de compostos orgânicos dos resíduos pelos sítios de troca no solo. A persistência dos compostos orgânicos também é fator que tem grande interferência nos processos de sorção/dessorção de cátions e ânions, dependendo da atividade microbiana, da disponibilidade metabólica do substrato carbonado e da sorção aos colóides do solo.