Optimizing Safe Yield Policy Implementation

The presented method enhances groundwater-mandated safe yield management. It is useful for settings that prevent sustained yield or integrated management. To protect hydraulically connected surface water rights, the Utah government’s Cache Valley groundwater management plan proposes that total pumping increase not exceed 84,431 m³/day. To determine how best to spatially distribute additional allowable pumping, stakeholders quantified limits defining acceptable impacts on selected water resource indicators. A new simulation–optimization (S–O) algorithm used these limits while computing optimal spatially distributed perennial yield or safe yield groundwater pumping extraction strategies. The limits prevent unacceptable decreases in: head and net flow between aquifer and surface waters (rivers, surface/subsurface drains, springs, lakes). The optimization objective function maximizes weighted pumping to provide water for 18 growing municipalities. For 16 perennial yield scenarios, computed optimal pumping increases differ in protectiveness toward senior water rights, and range from 16% to 103% of the state plan-proposed increase. Implementing a protective strategy would achieve 90% of the storage changes needed to reach equilibrium within 23 years. Indicator potentiometric heads would reach equilibrium within 10–40 years. At equilibrium, an optimal Cache Valley perennial yield strategy acceptably minimizes net annual non-pumping discharges. By comparison, multi-period 20-year transient groundwater mining optimizations allow more pumping in early years. Pumping then must decline to satisfy seepage and head constraints through year 20. Adverse seepage impact would increase for years thereafter. For situations governed by safe or perennial yield policy, equilibrium-based (steady-state) optimization is very useful. It effectively develops optimal perennial yield strategies.     

Catalytic oxidation with Al-Ce-Fe-PILC as a post-treatment system for coffee wet processing wastewater

The effluent from the anaerobic biological treatment of coffee wet processing wastewater (CWPW) contains a non-biodegradable compound that must be treated before it is discharged into a water source. In this paper, the wet hydrogen peroxide catalytic oxidation (WHPCO) process using Al-Ce-Fe-PILC catalysts was researched as a post-treatment system for CWPW and tested in a semi-batch reactor at atmospheric pressure and 25 °C. The Al-Ce-Fe-PILC achieved a high conversion rate of total phenolic compounds (70%) and mineralization to CO(2) (50%) after 5 h reaction time. The chemical oxygen demand (COD) of coffee processing wastewater after wet hydrogen peroxide catalytic oxidation was reduced in 66%. The combination of the two treatment methods, biological (developed by Cenicafé) and catalytic oxidation with Al-Ce-Fe-PILC, achieved a 97% reduction of COD in CWPW. Therefore, the WHPCO using Al-Ce-Fe-PILC catalysts is a viable alternative for the post-treatment of coffee processing wastewater.     

THE INFORMATION TECHNOLOGY REVOLUTION AND THE PUZZLING TRENDS IN TOBIN'S AVERAGE q*

The market value of U.S. corporations declined by 50% during 1973–74 and stagnated for the following 15 years. This abrupt decline in market valuations coincided with two technology shocks: (1) the start of the information technology revolution and (2) a sudden slowdown in productivity growth. I use general equilibrium theory to quantify the macroeconomic and asset price implications of these two shocks. The information technology revolution and the productivity slowdown make the theory consistent with the trends of key macroeconomic aggregates from the mid‐1970s to the 1990s, and can also account for most of the drop in market values.     

Parisian types of ruin probabilities for a class of dependent risk-reserve processes

For a rather general class of risk-reserve processes, we provide an exact method for calculating different kinds of ruin probabilities, with particular emphasis on variations over Parisian type of ruin. The risk-reserve processes under consideration have, in general, dependent phase-type distributed claim sizes and inter-arrivals times, whereas the movement between claims can either be linear or follow a Brownian motion with linear drift. For such processes, we provide explicit formulae for classical, Parisian and cumulative Parisian types of ruin (for both finite and infinite time horizons) when the clocks are phase-type distributed. An erlangization scheme provides an efficient algorithmic methods for calculating the aforementioned ruin probabilities with deterministic clocks. Special attention is drawn to the construction of specific dependency structures, and we provide a number of numerical examples to study its effect on probabilities.     

Should countries control international profit shifting?

We present a fiscal competition model with two policy instruments: the level of corporate taxation and the tightness of control of profit shifting by multinational firms (MNF). We show that a country may optimally decide not to monitor the MNF for two reasons. Firstly, this country becomes an attractive location for MNF activity despite a high corporate tax. Secondly, as the profits of the MNF become mobile, the focus of tax competition is shifted. Taxation then influences both an MNF's location and the place where it declares its profits.     

ESTIMATING ANNUAL RIVERBANK EROSION RATES—A DENDROGEOMORPHIC METHOD

An accurate estimation of riverbank erosion rates is critical for the evaluation of the past, present, and future sediment regime of river systems. Understanding these relationships allows watershed managers and regulators to prioritize river restoration and contaminated site remediation projects. In this dendrogeomorphic study, changes in the anatomy of tree roots exposed between 1 and 31 years were used to estimate the average annual erosion rates of riverbank sediments on a large river in Michigan, USA. Exposed root samples from diffuse and ring‐porous hardwoods, together with buried ones as controls, were analyzed. Differences in the arrangement, size and frequency of vessels, fiber diameter, cell wall thickness, growth ring width, and scarring between the exposed and the buried samples were used to identify the first year of root exposure. Results of the regression analysis between the average annual erosion rate and the Bank Erosion Hazard Index (BEHI) indicated that the more recently exposed roots (less than 7 years in this study) explained more of the variance (R² = 0.67) than when all samples were included (R² = 0.38). Although the average erosion rates for long periods can be accurately determined from the dating of exposed tree roots, attempts to relate these rates using the BEHI for longer periods are less successful, as BEHI values can vary considerably over time as the riverbank erodes. Consequently, when using exposed tree roots to develop regression equations and erosion rate curves for the estimation of erosion rates based on BEHI scores, it is necessary to use roots that were recently exposed. Copyright © 2013 John Wiley & Sons, Ltd.     

Understanding Filipino Rice Farmer Preference Heterogeneity for Varietal Trait Improvements: A Latent Class Analysis

Using an experimental methodology based on investment games, we examine whether smallholder rice farmers from Nueva Ecija, Philippines have heterogeneous preferences for improvements in 10 rice varietal traits. We use a latent class cluster approach to identify different segments of rice producing households and their distinct preferences for trait improvements. These clusters were characterised post hoc using household, farm, and marketing characteristics. On average, farmers invested the most in rice varietal trait improvements that offered opportunities to reduce losses caused by lodging, insects and diseases. We found four classes of farmers with distinct preferences for improvements in variety traits. The clusters were significantly different in terms of household and farm characteristics. These findings can guide breeding research in the development of varieties that have the traits farmers identified for improvement, and that will address the unique needs of distinct farmer segments.     

Neo-Corporatism and Territorial Economic Development: The Ecuadorian Indigenous Movement in Local Government

This article argues that the democratization of local governments that has been led by indigenous movements in Ecuador can best be described as “neocorporatist”. The article, based on the evidence from two cases of indigenous local governments in the Andes, argues that the forms of “neo-corporatism” created by the Ecuadorian indigenous movement on its entry into government are designed as participatory institutional frameworks that also serve as channels for the expression of social movements’ demands. The neocorporatist practices deployed by indigenous movements in these areas have had mixed results, both in terms of their implementation and of their capacity to foster viable income-generating activities for poor rural areas. On balance, while the forms of neocorporatist government fostered by the indigenous movement can have positive impacts on economic development, there are still two broad limitations. First, it continues to be difficult to foster a process of territorial economic development that effectively addresses the distinct interests that exist among different community organizations. Second, the negative effects of the wider economic context in which local territories find themselves remain beyond the control of the local government.     

Competing in taxes and investment under fiscal equalization

The paper considers a model of federation with two heterogeneous regions that try to attract the capital by competing in capital income taxes and public investment that enhance the productivity of capital. Regions' choices determine allocation of capital across the regions and their revenues under a tax sharing scheme. This framework allows for the examination of different approaches to fiscal equalization schemes [Boadway, R., Flatters, F., 1982. Efficiency and equalization payments in a federal system of government: a synthesis and extension of recent results, Canadian Journal of Economics 15, 613-633; Weingast, B.R., 2006. Second Generation Fiscal Federalism: Implication for Decentralized Democratic Governance and Economic Development, Working Paper, Hoover Institution, Stanford University]. We show that tax competition distorts (downwards) public investments and that the equalization grants discourage public investments with a little effect on equilibrium taxes. However, the equalization schemes remain beneficial not only for the federation and, under a low degree of regional asymmetry, also for each region.     

Coordination of capital taxation among asymmetric countries

This paper studies international fiscal coordination in a world of integrated markets and sovereign national governments. Mobile capital and immobile labor are taxed in order to finance a fixed budget. This generates productive inefficiency. Two fiscal reforms are considered: a minimum capital tax level and a tax range, i.e., a minimum plus a maximum capital tax level. It is shown that the introduction of a lower bound to the capital tax level is never preferred to fiscal competition by all countries while there always exists a combination of both a lower and an upper bound (i.e., a tax range) which is unanimously accepted.