Assessing taxpayer response to legislative changes: A case study of ‘in-house’ fringe benefits rules

On 22 October 2012, the Australian Federal Government announced the removal of the $1,000 in-house fringe benefits concession when used as part of a salary packaging arrangement. At the time of the announcement, the Federal Government predicted that the removal of the concession would contribute additional tax revenue of $445 million over the following four years as well as an increase of GST payments to the States and Territories. However, anecdotal evidence at the same time indicated that the Australian employer response was to immediately stop providing employees with such in-house fringe benefits via salary sacrificing arrangements. Data presented in this article, collected from a combination of interviews with tax managers of four Australian entities as well as a review of the published archival data, confirms that the abolition of the $1,000 in-house fringe benefits concession was perceived as a negative change, whereby employees were considered the ‘big losers’ despite assertions by the Federal Government to the contrary. Using a conceptual map of tax rule change developed by Oats and Sadler, this article seeks to understand the reasons for this fringe benefits tax change and taxpayer response. In particular, the economic and political factors, and the responses of the relevant taxpayers (employers) are explored. Drawing on behavioural economic concepts, the actions, attitudes and response of employers to the rule change are also examined. The research findings suggest that the decision by Australian employers to cease providing the in-house fringe benefits as part of a salary-packaging arrangement after the legislative amendment was impacted by more than simple rational behaviour.

Reducing tariffs according to WTO accession rules: The case of Vietnam

When Vietnam joined the World Trade Organization (WTO) in 2007 it was granted an accession period up to 2014. During this period tariffs would have to fall according to the accession agreement. This paper evaluates this 2007–2014 trade liberalization by building an applied general equilibrium model and calibrating it to the Vietnamese data. The model pays careful attention to the fact that Vietnam has many state-owned enterprises. The model simulations show that the WTO tariff reductions will reduce overall welfare. Moreover, the biggest loss will take place among the poor rural households in Vietnam. This paper proposes other tariff reforms that will both raise overall welfare and reduce income inequality.

Transfer pricing rules and competing governments

The literature on the regulation of multinationals' transfer prices has not considered the possibility that governments may use transfer pricing rules strategically when they compete with other governments. The present paper analyses this case and shows that, even in the absence of agency considerations, a non‐cooperative equilibrium is characterised by above‐optimal levels of effective taxation. We then derive conditions under which harmonization of transfer pricing rules lead to a Pareto improvement, and show that harmonization according to the ‘arm's length’ principle—the form of harmonization advocated by the OECD—may not be Pareto improving.

Temperature independent mixing rules to correlate the solubilities of antibiotics and anti-inflammatory drugs in SCCO2

The accurate experimental determination of the solubilities of antibiotics and anti-inflammatory drugs in supercritical fluids (SCFs) and correlations are essential for the development of supercritical technologies for the pharmaceuticals industry. In this work, the solubilities of penicillinG, penicillinV, flurbiprofen, ketoprofen, naproxen, ibuprofen, aspirin and diflunisal in supercritical carbon dioxide (SCCO2) were correlated using Peng-Robinson equation of state (PR EOS) with the modified Kwak and Mansoori mixing rules (mKM) and with Bartle model. The ability of mKM rules was compared against the conventional mixing rules of van der Waals in correlating the solubilities. In the present model, vapor pressure was considered as an adjustable parameter along with binary interactions parameters. In the proposed model, the constants used in the mixing rule, and vapor pressure expression coefficients are temperature independent. The optimization of these constants with experimental data gives binary interaction parameters along with vapor pressure correlations. Sublimation enthalpies were estimated with both the models compared with literature reported experimental values.

Generic Routing Rules and a Scalable Access Enhancement for the Network-on-Chip RECONNECT

RECONNECT is a Network-on-Chip using a honeycomb topology. In this paper we focus on properties of general rules applicable to a variety of routing algorithms for the NoC which take into account the missing links of the honeycomb topology when compared to a mesh. We also extend the original proposal [5] and show a method to insert and extract data to and from the network. Access Routers at the boundary of the execution fabric establish connections to multiple periphery modules and create a torus to decrease the node distances. Our approach is scalable and ensures homogeneity among the compute elements in the NoC. We synthesized and evaluated the proposed enhancement in terms of power dissipation and area. Our results indicate that the impact of necessary alterations to the fabric is negligible and effects the data transfer between the fabric and the periphery only marginally.

Monetary policy rules and estimated reaction functions for the European Central Bank

This thesis studies the interest-rate policy of the ECB by estimating monetary policy rules using real-time data and central bank forecasts. The aim of the estimations is to try to characterize a decade of common monetary policy and to look at how different models perform at this task.The estimated rules include: contemporary Taylor rules, forward-looking Taylor rules, nonlinearrules and forecast-based rules. The nonlinear models allow for the possibility of zone-like preferences and an asymmetric response to key variables. The models therefore encompass the most popular sub-group of simple models used for policy analysis as well as the more unusual non-linear approach. In addition to the empirical work, this thesis also contains a more general discussion of monetary policy rules mostly from a New Keynesian perspective. This discussion includes an overview of some notable related studies, optimal policy, policy gradualism and several other related subjects. The regression estimations are performed with either least squares or the generalized method of moments depending on the requirements of the estimations. The estimations use data from both the Euro Area Real-Time Database and the central bank forecasts published in ECB Monthly Bulletins. These data sources represent some of the best data that is available for this kind of analysis. The main results of this thesis are that forward-looking behavior appears highly prevalent, but that standard forward-looking Taylor rules offer only ambivalent results with regard to inflation. Nonlinear models are shown to work, but on the other hand do not have a strong rationale over a simpler linear formulation. However, the forecasts appear to be highly useful in characterizing policy and may offer the most accurate depiction of a predominantly forward-looking central bank. In particular the inflation response appears much stronger while the output response becomes highly forward-looking as well.

Ising pyrochlore magnets: Low-temperature properties, "ice rules," and beyond

Pyrochlore magnets are candidates for what Harris et al. [Phys. Rev. Lett. 79, 2554 (1997)] call "spin-ice" behavior. We present theoretical simulations of relevance for the pyrochlore family R2Ti2O7 (R = rare earth) supported by magnetothermal measurements on selected systems. Ey considering long-ranged dipole-dipole as well as short-ranged superexchange interactions, we get three distinct behaviors: (i) an ordered doubly degenerate state, (ii) a highly disordered state with a broad transition to paramagnetism, and (iii) a partially ordered state with a sharp transition to paramagnetism. Closely corresponding behavior is seen in the real compounds.

Shear sum rules at finite chemical potential

We derive sum rules which constrain the spectral density corresponding to the retarded propagator of the T-xy component of the stress tensor for three gravitational duals. The shear sum rule is obtained for the gravitational dual of the N = 4 Yang-Mills, theory of the M2-branes and M5-branes all at finite chemical potential. We show that at finite chemical potential there are additional terms in the sum rule which involve the chemical potential. These modifications are shown to be due to the presence of scalars in the operator product expansion of the stress tensor which have non-trivial vacuum expectation values at finite chemical potential.

Reducing convergence times of self-propelled swarms via modified nearest neighbor rules

Vicsek et al. proposed a biologically inspired model of self-propelled particles, which is now commonly referred to as the Vicsek model. Recently, attention has been directed at modifying the Vicsek model so as to improve convergence properties. In this paper, we propose two modification of the Vicsek model which leads to significant improvements in convergence times. The modifications involve an additional term in the heading update rule which depends only on the current or the past states of the particle's neighbors. The variation in convergence properties as the parameters of these modified versions are changed are closely investigated. It is found that in both cases, there exists an optimal value of the parameter which reduces convergence times significantly and the system undergoes a phase transition as the value of the parameter is increased beyond this optimal value. (C) 2012 Elsevier B.V. All rights reserved.

Sum rules and three point functions

Sum rules constraining the R-current spectral densities are derived holographically for the case of D3-branes, M2-branes and M5-branes all at finite chemical potentials. In each of the cases the sum rule relates a certain integral of the spectral density over the frequency to terms which depend both on long distance physics, hydrodynamics and short distance physics of the theory. The terms which which depend on the short distance physics result from the presence of certain chiral primaries in the OPE of two it-currents which are turned on at finite chemical potential. Since these sum rules contain information of the OPE they provide an alternate method to obtain the structure constants of the two R-currents and the chiral primary. As a consistency check we show that the 3 point function derived from the sum rule precisely matches with that obtained using Witten diagrams.

Spectral moment sum rules for the retarded Green's function and self-energy of the inhomogeneous Bose-Hubbard model in equilibrium and nonequilibrium

We derive exact expressions for the zeroth and the first three spectral moment sum rules for the retarded Green's function and for the zeroth and the first spectral moment sum rules for the retarded self-energy of the inhomogeneous Bose-Hubbard model in nonequilibrium, when the local on-site repulsion and the chemical potential are time-dependent, and in the presence of an external time-dependent electromagnetic field. We also evaluate these expressions for the homogeneous case in equilibrium, where all time dependence and external fields vanish. Unlike similar sum rules for the Fermi-Hubbard model, in the Bose-Hubbard model case, the sum rules often depend on expectation values that cannot be determined simply from parameters in the Hamiltonian like the interaction strength and chemical potential but require knowledge of equal-time many-body expectation values from some other source. We show how one can approximately evaluate these expectation values for the Mott-insulating phase in a systematic strong-coupling expansion in powers of the hopping divided by the interaction. We compare the exact moment relations to the calculated moments of spectral functions determined from a variety of different numerical approximations and use them to benchmark their accuracy. DOI: 10.1103/PhysRevA.87.013628

Novel Relay Selection Rules for Average Interference-Constrained Cognitive AF Relay Networks

Cooperative relaying combined with selection exploits spatial diversity to significantly improve the performance of interference-constrained secondary users in an underlay cognitive radio (CR) network. However, unlike conventional relaying, the state of the links between the relay and the primary receiver affects the choice of the relay. Further, while the optimal amplify-and-forward (AF) relay selection rule for underlay CR is well understood for the peak interference-constraint, this is not so for the less conservative average interference constraint. For the latter, we present three novel AF relay selection (RS) rules, namely, symbol error probability (SEP)-optimal, inverse-of-affine (IOA), and linear rules. We analyze the SEPs of the IOA and linear rules and also develop a novel, accurate approximation technique for analyzing the performance of AF relays. Extensive numerical results show that all the three rules outperform several RS rules proposed in the literature and generalize the conventional AF RS rule.

Renormalization group invariants and sum rules in the deflected mirage mediation supersymmetry breaking

We examine the deflected mirage mediation supersymmetry breaking (DMMSB) scenario, which combines three supersymmetry breaking scenarios, namely anomaly mediation, gravity mediation and gauge mediation using the one-loop renormalization group invariants (RGIs). We examine the effects on the RGIs at the threshold where the gauge messengers emerge, and derive the supersymmetry breaking parameters in terms of the RGIs. We further discuss whether the supersymmetry breaking mediation mechanism can be determined using a limited set of invariants, and derive sum rules valid for DMMSB below the gauge messenger scale. In addition we examine the implications of the measured Higgs mass for the DMMSB spectrum.