Are Tax Havens Good Neighbours? FDI Spillovers and Developing Countries

Abstract

This paper investigates the impact of tax havens on non-tax haven countries in terms of foreign direct investment (FDI). We analyze the importance of agglomeration effects by including FDI inflow levels in tax havens and capture geographic spillovers by measuring proximity to the nearest tax haven. Our analysis yields several interesting findings. First, using panel data for 142 countries, we find evidence of positive spillovers from tax havens to nearby developing countries, but not to nearby developed countries. Second, restricting our panel to developing countries, we find the positive effect of tax haven FDI on developing countries to be robust. Third, we find that geographic distance matters for financial flows: developing countries which are the closest to a nearby tax haven benefit the most in terms of FDI inflows. This result is robust to accounting for spatial interdependence of FDI.     

Catherine Cl ment and Julia Kristeva. The Feminine and the Sacred. Trans. Jane Marie Todd. New York: Columbia University Press, 2001

And the Mirror Cracked: Feminist Cinema and Film Theory, by Anneke Smelik. London: Macmillan Press, 1998.

Simone de Beauvoir: A Critical Reader, edited by Elizabeth Fallaize. London and New York: Routledge, 1998.

Voice of the Living Light: Hildegard of Bingen and Her World, edited by Barbara Newman. Berkeley: University of California Press, 1998.

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Margaret Cavendish and the Exiles of the Mind, by Anna Battigelli. Lexington: The University Press of Kentucky, 1998.

Cracks in the Pedestal: Ideology and Gender in Hollywood, by Philip Green. Amherst: University of Massachusetts Press, 1998.

The Women and War Reader, edited by Lois Ann Lorentzen and Jennifer Turpin. New York: New York University Press, 1998.

Surrealist Women: An International Anthology, edited by Penelope Rosemont. Austin: University of Texas Press, 1998.

The Knotted Subjed: Hysteria and its Discontents, by Elisabeth Bronfen. Princeton: Princeton University Press, 1998.

Ventures into Childland: Victorians, Fairy Tales, and Femininity, by U.C. Knoepfimacher. Chicago: The University of Chicago Press, 1998.     

US police officers’ knowledge regarding behaviors indicative of deception: Implications for eradicating erroneous beliefs through training

Abstract

The current study surveyed a random sample of Texas law enforcement officers (n?=?109) about their knowledge regarding behaviors indicative of deception. The officers were not highly knowledgeable about this topic, overall performing at a chance level in assessing how various behavioral cues relate to deception. Confidence in one's skill was unrelated to accuracy, and officers who reported receiving the most training and utilizing these skills more often were more confident but no more accurate in their knowledge of the behaviors that typically betray deception. The authors compare these results to previous studies that have examined officers’ beliefs in other countries and discuss the implication of these results in terms of developing future training programs that may debunk the common misconceptions that officers possess.     

Affordability and mortgage design: Permanent buydowns and buyups

Abstract

A simulation model that mirrors the actual practices of lenders in setting qualification requirements for mortgage loans is used to assess the impact of permanent buydowns and buyups on the maximum sale price that buyers can afford. Buydowns are reductions in the coupon rate traded off against higher discount points; buyups are the reverse. Although buydowns have little effect on afford ability, buyups can have significant effects. Their potential is largely unrealized, however, because of the call risk to lenders of loans carrying premiums. The authors propose a “discount recovery” provision, which would be similar to a prepayment penalty except that the payment upon prepayment would be tied to the amount of the discount foregone by the lender. This would protect lenders against call risk, giving them every reason to offer buyups as a way of expanding demand.     

The persuasive power of a Committee Chairman: Arthur Burns and the FOMC

This paper investigates persuasion as a means of influence for the Federal Reserve Chairman in meetings of the Federal Open Market Committee (FOMC). Using textual records of FOMC meetings, federal funds rate targets have been recorded for Committee members who served in the Arthur Burns era (1970–1978). Results show that Burns-member differences in stated funds rate targets were lower when Burns made recommendations early in the meeting, consistent with the hypothesis that the Chairman is persuasive. Additional results show that members’ tendencies to respond to Burns's recommendations were related to their personal and political loyalties.