Three applications of the marginal cost of public funds concept

This paper illustrates the use of the marginal cost of public funds concept in three contexts. First, we extend Parry’s (2003) analysis of the efficiency effects excise taxes in the U.K., primarily by incorporating the distortion caused by imperfect competition in the cigarette market and distinguishing between the MCFs for per unit and ad valorem taxes on cigarettes. Our computations show, contrary to the standard result in the literature, that the per unit tax on cigarettes has a slightly lower MCF than the ad valorem tax on cigarettes. Second, we calculate the MCF for a payroll tax in a labour market with involuntary unemployment, using the Shapiro and Stiglitz (1984) efficiency wage model as our framework. Our computations, based on Canadian labour market data, indicate that incorporating the distortion caused by involuntary unemployment raises the MCF by 25 to 50 percent. Third, we derive expressions for the distributionally-weighted MCFs for the exemption level and the marginal tax rate for a “flat tax”, such as the one that has been adopted by the province of Alberta. This allows us to develop a restricted, but tractable, version of the optimal income tax problem. Computations indicate that the optimal marginal tax rate may be quite high, even with relatively modest pro-poor distributional preferences.

The marginal cost of funds from public sector borrowing

An expression for the welfare cost of a marginal increase in the public debt is derived using a simple AK endogenous growth model. This measure of the marginal cost of public funds (MCF) can be interpreted as the marginal benefit-cost ratio that a debtfinanced public project needs in order to generate a net social gain. The model predicts an increase in the public debt ratio will have little effect on the optimal public expenditure ratio and that most of the adjustment will occur on the tax side of the budget.

Bank relationships: effect on the availability and marginal cost of credit for firms in Argentina

The paper provides evidence on what affects at the margin the cost and availability of bank credit for firms in Argentina. We study in particular how banks use different pieces of private and public information to screen firms and overcome informational asymmetries in the credit market. Some private information is transferable, like balance sheet data. Private information generated in relationships is not. To capture the closeness of bank relationships, we resort to the concentration of bank credit and the number of credit lines in a bank. We also consider public information available in the Central de Deudores. The cost of credit is measured using overdrafts, the most expensive line of credit, at the bank that charges the highest rate for overdrafts. We find that the cost of credit is smaller for a firm with a close relationship to the marginal bank. Firms with large assets, a high sales/assets ratio, and a low debt/assets ratio pay a lower interest rate at the margin. A good credit history (no debt arrears and no bounced checks) and collateral also reduce the marginal interest rate. The availability of credit is measured by unused credit lines as a proportion of total liabilities with the main bank. The availability of credit depends positively on a close relationship with the main bank. Large assets, a high return over assets, a high sales/assets ratio, a low debt/assets ratio, a good credit history, and collateral lead to higher credit availability. Our measure of unused credit lines is less ambiguous than traditional measures like leverage, which may indicate financial distress rather than availability of credit.

Curva de Phillips novo keynesiana, custo marginal e expectativas de inflação no Brasil

A importância deste trabalho será analisar a dinâmica inflacionária brasileira de acordo com um modelo híbrido de curva de Phillips baseado nos estudos sobre a curva de Phillips “Novo-Keynesiana”. Através deste estudo será possível avaliar a inflação passada e as expectativas de inflação como determinantes à inflação corrente e a aplicabilidade da curva de Phillips “Novo-Keynesiana” para o caso brasileiro. As conclusões do estudo darão uma indicação mais concreta do novo dinamismo da inflação brasileira e do papel das expectativas de inflação como variável predissora.

A decisão de consumo marginal baseado no aumento do limite de crédito

No Brasil os emissores de cartão de crédito realizam periodicamente aumento de limites do cartão, para clientes que possuem bom comportamento creditício. O objetivo do nosso estudo é analisar os efeitos desse aumento no uso que o cliente tem do seu cartão, com a hipótese de que o cliente passará a utilizar mais o cartão, seja por anchoring, visto que ele se importa em sempre ter uma reserva de limite para eventuais emergências, ou por se sentir priorizado pelo banco, ou até mesmo por demanda reprimida de crédito. Para isso, analisamos uma base de aumento de limite, com grupo de teste e controle, de clientes selecionados para aumento de limite, e observamos que o aumento fez com que os clientes aumentassem seus gastos, seu saldo devedor, passaram a fazer mais transações e timidamente passaram a rotativar. Após observar esses efeitos, dividimos o grupo em dois: Clientes com utilização média menor ou igual a 50% antes da ação e clientes com utilização média maior que 50% antes da ação. Para os clientes do teste dos dois grupos observamos um aumento no gasto mensal, no número de transações mensal, no saldo devedor e no número de clientes rotativando. Essa diferença foi maior no grupo de maior utilização pré tratamento, mas mesmo clientes que inicialmente pareciam ter uma demanda de crédito menor, mostraram-se sensíveis a utilizar mais devido ao aumento do limite.

Note zone

Imagem componente do jogo “Musikinésia (http://www.loa.sead.ufscar.br/musikinesia.php)” desenvolvido pela equipe do Laboratório de Objetos de Aprendizagem da Universidade Federal de São Carlos (LOA/UFSCar).

Contamination of port zone sediments by metals from Large Marine Ecosystems of Brazil

Sediment contamination by metals poses risks to coastal ecosystems and is considered to be problematic to dredging operations. In Brazil, there are differences in sedimentology along the Large Marine Ecosystems in relation to the metal distributions. We aimed to assess the extent of Al, Fe, Hg, Cd, Cr, Cu, Ni, Pb and Zn contamination in sediments from port zones in northeast (Mucuripe and Pecem) and southeast (Santos) Brazil through geochemical analyses and sediment quality ratings. The metal concentrations found in these port zones were higher than those observed in the continental shelf or the background values in both regions. In the northeast, metals were associated with carbonate, while in Santos, they were associated with mud. Geochemical analyses showed enrichments in Hg, Cd, Cu, Ni and Zn, and a simple application of international sediment quality guidelines failed to predict their impacts, whereas the use of site-specific values that were derived by geochemical and ecotoxicological approaches seemed to be more appropriate in the management of the dredged sediments. (C) 2012 Elsevier Ltd. All rights reserved.

Nesting architecture and population structure of the fungus-growing ant Cyphomyrmex transversus (Formicidae: Myrmicinae: Attini) in the Brazilian coastal zone of Ilheus, Bahia

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)

Determination of fluoroacetate and fluoride in blood serum by capillary zone electrophoresis using capacitively coupled contactless conductivity detection

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

Boundary identification criteria and geometry analysis of Al 7050 stretch zone from elevation profiles

This article describes the development of a method for analysis of the shape of the stretch zone surface based on parallax measurement theory and using digital image processing techniques. Accurate criteria for the definition of the boundaries of the stretch zone are established from profiles of fracture surfaces obtained from crack tip opening displacement tests on Al-7050 alloy samples. The elevation profiles behavior analysis is based on stretch zone width and height parameters. It is concluded that the geometry of the stretch zone profiles under plane strain conditions can be described by a semi-parabolic relationship. (C) Elsevier B.V., 1999. All rights reserved.

Fractal analysis along stretch zone for an aluminum alloy

The topography of fracture surface along stretch zone front for Al7050 is analyzed about its fractal behavior and compared against local distributions of microstructural parameters and stretch zone height, considered here as a toughness parameter. Major influence on microscale was presented by precipitation density. Larger grains should be significant on topographic behavior at macroscale, besides the local toughness measured along stretch zone. The large scattering of fractal measurements along specimen width should limit the validity of models relating fractal values and fracture toughness. It is proposed that models based on mixed fractals must also consider some dispersion parameter instead of mean fractal measurements due to the overall complexity of fracture relief formation. It is suggested that sampling for fractal measurement must be restricted to plane strain region along fracture surface, due to smaller scattering in this region. (C) 2004 Elsevier B.V. All rights reserved.

Fractal behavior throughout stretch zone of 15-5PH steel under elastic-plastic loading conditions

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

MRT letter: Extended depth from focus reconstruction method for stretch zone measurement in 15-5PH steel

The stretch zone width (SZW) data for 15-5PH steel CTOD specimens fractured at -150 degrees C to + 23 degrees C temperature were measured based on focused images and 3D maps obtained by extended depth-of-field reconstruction from light microscopy (LM) image stacks. This LM-based method, with a larger lateral resolution, seems to be as effective for quantitative analysis of SZW as scanning electron microscopy (SEM) or confocal scanning laser microscopy (CSLM), permitting to clearly identify stretch zone boundaries. Despite the worst sharpness of focused images, a robust linear correlation was established to fracture toughness (KC) and SZW data for the 15-5PH steel tested specimens, measured at their center region. The method is an alternative to evaluate the boundaries of stretched zones, at a lower cost of implementation and training, since topographic data from elevation maps can be associated with reconstructed image, which summarizes the original contrast and brightness information. Finally, the extended depth-of-field method is presented here as a valuable tool for failure analysis, as a cheaper alternative to investigate rough surfaces or fracture, compared to scanning electron or confocal light microscopes. Microsc. Res. Tech. 75:11551158, 2012. (C) 2012 Wiley Periodicals, Inc.