What shapes attitudes toward paying taxes? Evidence from multicultural European countries

Objectives. Considerable evidence suggests that enforcement efforts cannot fully explain the high degree of tax compliance. To resolve this puzzle of tax compliance, several researchers have argued that citizens' attitudes toward paying taxes, defined as tax morale, helps to explain the high degree of tax compliance. However, most studies have treated tax morale as a black box, without discussing which factors shape it. Additionally, the tax compliance literature provides little empirical research that investigates attitudes toward paying taxes in Europe. Methods. Thus, this article is unique in its examination of citizen tax morale within three multicultural European countries, Switzerland, Belgium, and Spain, a choice that allows far more detailed examination of the impact of culture and institutions using data sets from the World Values Survey and the European Values Survey. Results. The results indicate the tendency that cultural and regional differences affect tax morale. Conclusion. The findings suggest that higher legitimacy for political institutions leads to higher tax morale.

Maternal support for autonomy : relationships with persistence for children with Down syndrome and typically developing children

Maternal behaviors and child mastery behaviors were examined in 25 children with Down syndrome and 43 typically developing children matched for mental age (24–36 months). During a shared problem-solving task, there were no group differences in maternal directiveness or support for autonomy, and mothers in the two groups used similar verbal strategies when helping their child. There were also no group differences in child mastery behaviors, measured as persistence with two optimally challenging tasks. However, the two groups differed in the relationships of maternal style with child persistence. Children with Down syndrome whose mothers were more supportive of their autonomy in the shared task displayed greater persistence when working independently on a challenging puzzle, while children of highly directive mothers displayed lower levels of persistence. For typically developing children, persistence was unrelated to maternal style, suggesting that mother behaviors may have different causes or consequences in the two groups.

Tax morale and conditional cooperation

Why so many people pay their taxes, even though fines and audit probability are low, is a central question in the tax compliance literature. Positing a homo oeconomicus having a refined motivation structure sheds light on this puzzle. This paper provides empirical evidence for the relevance of conditional cooperation, using survey data from 30 West and East European countries. We find a high correlation between perceived tax evasion and tax morale. The results remain robust after exploiting endogeneity and conducting several robustness tests. We also observe a strong positive correlation between institutional quality and tax mmorale. Keywords: Tax morale; Tax compliance; Tax evasion; Pro-social behavior; Institutions

Stronger difficulty notions for client puzzles and denial-of-service-resistant protocols

Client puzzles are meant to act as a defense against denial of service (DoS) attacks by requiring a client to solve some moderately hard problem before being granted access to a resource. However, recent client puzzle difficulty definitions (Stebila and Ustaoglu, 2009; Chen et al., 2009) do not ensure that solving n puzzles is n times harder than solving one puzzle. Motivated by examples of puzzles where this is the case, we present stronger definitions of difficulty for client puzzles that are meaningful in the context of adversaries with more computational power than required to solve a single puzzle. A protocol using strong client puzzles may still not be secure against DoS attacks if the puzzles are not used in a secure manner. We describe a security model for analyzing the DoS resistance of any protocol in the context of client puzzles and give a generic technique for combining any protocol with a strong client puzzle to obtain a DoS-resistant protocol.

Manipulating double-decker molecules at the liquid-solid interface

We have used a scanning tunneling microscope to manipulate heteroleptic phthalocyaninato, naphthalocyaninato, porphyrinato double-decker molecules at the liquid/solid interface between 1-phenyloctane solvent and graphite. We employed nano-grafting of phthalocyanines with eight octyl chains to place these molecules into a matrix of heteroleptic double-decker molecules; the overlayer structure is epitaxial on graphite. We have also used nano-grafting to place double-decker molecules in matrices of single-layer phthalocyanines with octyl chains. Rectangular scans with a scanning tunneling microscope at low bias voltage resulted in the removal of the adsorbed doubledecker molecular layer and substituted the double-decker molecules with bilayer-stacked phthalocyanines from phenyloctane solution. Single heteroleptic double-decker molecules with lutetium sandwiched between naphthalocyanine and octaethylporphyrin were decomposed with voltage pulses from the probe tip; the top octaethylporphyrin ligand was removed and the bottom naphthalocyanine ligand remained on the surface. A domain of decomposed molecules was formed within the double-decker molecular domain, and the boundary of the decomposed molecular domain self-cured to become rectangular. We demonstrated a molecular “sliding block puzzle��� with cascades of double-decker molecules on the graphite surface.

An integrated approach to cryptographic mitigation of denial-of-service attacks

Gradual authentication is a principle proposed by Meadows as a way to tackle denial-of-service attacks on network protocols by gradually increasing the confidence in clients before the server commits resources. In this paper, we propose an efficient method that allows a defending server to authenticate its clients gradually with the help of some fast-to-verify measures. Our method integrates hash-based client puzzles along with a special class of digital signatures supporting fast verification. Our hash-based client puzzle provides finer granularity of difficulty and is proven secure in the puzzle difficulty model of Chen et al. (2009). We integrate this with the fast-verification digital signature scheme proposed by Bernstein (2000, 2008). These schemes can be up to 20 times faster for client authentication compared to RSA-based schemes. Our experimental results show that, in the Secure Sockets Layer (SSL) protocol, fast verification digital signatures can provide a 7% increase in connections per second compared to RSA signatures, and our integration of client puzzles with client authentication imposes no performance penalty on the server since puzzle verification is a part of signature verification.

Defending web services against denial of service attacks using client puzzles

The interoperable and loosely-coupled web services architecture, while beneficial, can be resource-intensive, and is thus susceptible to denial of service (DoS) attacks in which an attacker can use a relatively insignificant amount of resources to exhaust the computational resources of a web service. We investigate the effectiveness of defending web services from DoS attacks using client puzzles, a cryptographic countermeasure which provides a form of gradual authentication by requiring the client to solve some computationally difficult problems before access is granted. In particular, we describe a mechanism for integrating a hash-based puzzle into existing web services frameworks and analyze the effectiveness of the countermeasure using a variety of scenarios on a network testbed. Client puzzles are an effective defence against flooding attacks. They can also mitigate certain types of semantic-based attacks, although they may not be the optimal solution.

Comparing different explanations of the volatility trend

We analyze the puzzling behavior of the volatility of individual stock returns over the past few decades. The literature has provided many different explanations to the trend in volatility and this paper tests the viability of the different explanations. Virtually all current theoretical arguments that are provided for the trend in the average level of volatility over time lend themselves to explanations about the difference in volatility levels between firms in the cross-section. We therefore focus separately on the cross-sectional and time-series explanatory power of the different proxies. We fail to find a proxy that is able to explain both dimensions well. In particular, we find that Cao et al. [Cao, C., Simin, T.T., Zhao, J., 2008. Can growth options explain the trend in idiosyncratic risk? Review of Financial Studies 21, 2599–2633] market-to-book ratio tracks average volatility levels well, but has no cross-sectional explanatory power. On the other hand, the low-price proxy suggested by Brandt et al. [Brandt, M.W., Brav, A., Graham, J.R., Kumar, A., 2010. The idiosyncratic volatility puzzle: time trend or speculative episodes. Review of Financial Studies 23, 863–899] has much cross-sectional explanatory power, but has virtually no time-series explanatory power. We also find that the different proxies do not explain the trend in volatility in the period prior to 1995 (R-squared of virtually zero), but explain rather well the trend in volatility at the turn of the Millennium (1995–2005).

Efficient modular exponentiation-based puzzles for denial-of-service protection

Client puzzles are moderately-hard cryptographic problems neither easy nor impossible to solve that can be used as a counter-measure against denial of service attacks on network protocols. Puzzles based on modular exponentiation are attractive as they provide important properties such as non-parallelisability, deterministic solving time, and linear granularity. We propose an efficient client puzzle based on modular exponentiation. Our puzzle requires only a few modular multiplications for puzzle generation and verification. For a server under denial of service attack, this is a significant improvement as the best known non-parallelisable puzzle proposed by Karame and Capkun (ESORICS 2010) requires at least 2k-bit modular exponentiation, where k is a security parameter. We show that our puzzle satisfies the unforgeability and difficulty properties defined by Chen et al. (Asiacrypt 2009). We present experimental results which show that, for 1024-bit moduli, our proposed puzzle can be up to 30 times faster to verify than the Karame-Capkun puzzle and 99 times faster than the Rivest et al.'s time-lock puzzle.

Practical client puzzles in the standard model

Client puzzles are cryptographic problems that are neither easy nor hard to solve. Most puzzles are based on either number theoretic or hash inversions problems. Hash-based puzzles are very efficient but so far have been shown secure only in the random oracle model; number theoretic puzzles, while secure in the standard model, tend to be inefficient. In this paper, we solve the problem of constucting cryptographic puzzles that are secure int he standard model and are very efficient. We present an efficient number theoretic puzzle that satisfies the puzzle security definition of Chen et al. (ASIACRYPT 2009). To prove the security of our puzzle, we introduce a new variant of the interval discrete logarithm assumption which may be of independent interest, and show this new problem to be hard under reasonable assumptions. Our experimental results show that, for 512-bit modulus, the solution verification time of our proposed puzzle can be up to 50x and 89x faster than the Karame-Capkum puzzle and the Rivest et al.'s time-lock puzzle respectively. In particular, the solution verification tiem of our puzzle is only 1.4x slower than that of Chen et al.'s efficient hash based puzzle.

Effort-release public-key encryption from cryptographic puzzles

Timed-release cryptography addresses the problem of “sending messages into the future”: information is encrypted so that it can only be decrypted after a certain amount of time, either (a) with the help of a trusted third party time server, or (b) after a party performs the required number of sequential operations. We generalise the latter case to what we call effort-release public key encryption (ER-PKE), where only the party holding the private key corresponding to the public key can decrypt, and only after performing a certain amount of computation which may or may not be parallelisable. Effort-release PKE generalises both the sequential-operation-based timed-release encryption of Rivest, Shamir, and Wagner, and also the encapsulated key escrow techniques of Bellare and Goldwasser. We give a generic construction for ER-PKE based on the use of moderately hard computational problems called puzzles. Our approach extends the KEM/DEM framework for public key encryption by introducing a difficulty notion for KEMs which results in effort-release PKE. When the puzzle used in our generic construction is non-parallelisable, we recover timed-release cryptography, with the addition that only the designated receiver (in the public key setting) can decrypt.

A method for measuring the creative potential of computer games

This paper describes a method for measuring the creative potential of computer games. The research approach applies a behavioral and verbal protocol to analyze the factors that influence the creative processes used by people as they play computer games from the puzzle genre. Creative potential is measured by examining task motivation and domain-relevant and creativity-relevant skills. This paper focuses on the reliability of the factors used for measurement, determining those factors that are more strongly related to creativity. The findings show that creative potential may be determined by examining the relationship between skills required and the effect of intrinsic motivation within game play activities.

The mystery of the U-shaped relationship between happiness and age

In this paper, we address the puzzle of the relationship between age and happiness. Whilst the majority of psychologists have concluded there is not much of a relationship at all, the economic literature has unearthed a possible U-shape relationship with the minimum level of satisfaction occurring in middle age (35–50). In this paper, we look for a U-shape in three panel data sets, the German Socioeconomic Panel (GSOEP), the British Household Panel Survey (BHPS) and the Household Income Labour Dynamics Australia (HILDA). We find that the raw data mainly supports a wave-like shape that only weakly looks U-shaped for the 20–60 age range. That weak U-shape in middle age becomes more pronounced when allowing for socio-economic variables. When we then take account of selection effects via fixed-effects, however, the dominant age-effect in all three panels is a strong happiness increase around the age of 60 followed by a major decline after 75, with the U-shape in middle age disappearing such that there is almost no change in happiness between the age of 20 and 50.

Cryptographic techniques for managing computational effort

Availability has become a primary goal of information security and is as significant as other goals, in particular, confidentiality and integrity. Maintaining availability of essential services on the public Internet is an increasingly difficult task in the presence of sophisticated attackers. Attackers may abuse limited computational resources of a service provider and thus managing computational costs is a key strategy for achieving the goal of availability. In this thesis we focus on cryptographic approaches for managing computational costs, in particular computational effort. We focus on two cryptographic techniques: computational puzzles in cryptographic protocols and secure outsourcing of cryptographic computations. This thesis contributes to the area of cryptographic protocols in the following ways. First we propose the most efficient puzzle scheme based on modular exponentiations which, unlike previous schemes of the same type, involves only a few modular multiplications for solution verification; our scheme is provably secure. We then introduce a new efficient gradual authentication protocol by integrating a puzzle into a specific signature scheme. Our software implementation results for the new authentication protocol show that our approach is more efficient and effective than the traditional RSA signature-based one and improves the DoSresilience of Secure Socket Layer (SSL) protocol, the most widely used security protocol on the Internet. Our next contributions are related to capturing a specific property that enables secure outsourcing of cryptographic tasks in partial-decryption. We formally define the property of (non-trivial) public verifiability for general encryption schemes, key encapsulation mechanisms (KEMs), and hybrid encryption schemes, encompassing public-key, identity-based, and tag-based encryption avors. We show that some generic transformations and concrete constructions enjoy this property and then present a new public-key encryption (PKE) scheme having this property and proof of security under the standard assumptions. Finally, we combine puzzles with PKE schemes for enabling delayed decryption in applications such as e-auctions and e-voting. For this we first introduce the notion of effort-release PKE (ER-PKE), encompassing the well-known timedrelease encryption and encapsulated key escrow techniques. We then present a security model for ER-PKE and a generic construction of ER-PKE complying with our security notion.

Modelling client puzzles and denial-of-service resistant protocols

Denial-of-service (DoS) attacks are a growing concern to networked services like the Internet. In recent years, major Internet e-commerce and government sites have been disabled due to various DoS attacks. A common form of DoS attack is a resource depletion attack, in which an attacker tries to overload the server's resources, such as memory or computational power, rendering the server unable to service honest clients. A promising way to deal with this problem is for a defending server to identify and segregate malicious traffic as earlier as possible. Client puzzles, also known as proofs of work, have been shown to be a promising tool to thwart DoS attacks in network protocols, particularly in authentication protocols. In this thesis, we design efficient client puzzles and propose a stronger security model to analyse client puzzles. We revisit a few key establishment protocols to analyse their DoS resilient properties and strengthen them using existing and novel techniques. Our contributions in the thesis are manifold. We propose an efficient client puzzle that enjoys its security in the standard model under new computational assumptions. Assuming the presence of powerful DoS attackers, we find a weakness in the most recent security model proposed to analyse client puzzles and this study leads us to introduce a better security model for analysing client puzzles. We demonstrate the utility of our new security definitions by including two hash based stronger client puzzles. We also show that using stronger client puzzles any protocol can be converted into a provably secure DoS resilient key exchange protocol. In other contributions, we analyse DoS resilient properties of network protocols such as Just Fast Keying (JFK) and Transport Layer Security (TLS). In the JFK protocol, we identify a new DoS attack by applying Meadows' cost based framework to analyse DoS resilient properties. We also prove that the original security claim of JFK does not hold. Then we combine an existing technique to reduce the server cost and prove that the new variant of JFK achieves perfect forward secrecy (the property not achieved by original JFK protocol) and secure under the original security assumptions of JFK. Finally, we introduce a novel cost shifting technique which reduces the computation cost of the server significantly and employ the technique in the most important network protocol, TLS, to analyse the security of the resultant protocol. We also observe that the cost shifting technique can be incorporated in any Diffine{Hellman based key exchange protocol to reduce the Diffie{Hellman exponential cost of a party by one multiplication and one addition.