The effects of corruption on the Nigerian economy

The effects of corruption on the Nigerian economy To evaluate the effects of corruption on the Nigerian economy, we utilise the estimated size of the hidden economy (a proxy for corruption) in effect to Nigerian economy growth, (Salisu, 2006). A MIMIC is a structural econometric model for estimating an equation in which the dependent variable is unobservable (latent). (Frey Weck-Hannemann, 1984) pioneered the use of MIMIC modelling in the context of the hidden economy. Since then, a number of other studies have employed this technique, (Aigner et al. 1986; Schneider 1997; Giles 1997, 1999; Tedds, 1998). It is a powerful technique for estimating the underground economy, as it allows for simultaneous interaction between multiple explanatory variables and multiple indicators of the hidden economy. The latent variable is linked, on the one hand, to a number of observable indicators (reflecting changes in the size of the unreported economy); and on the other hand to a set of observed causal variables, which are considered to be importan t determinants of the unreported economic activity. 4.4 Discussion of Empirical Results for Model Based on the reasoning we try to model the existence and the effect of corruption on Nigerian economy (FDI) based on the model by Johnson and Dahlstrom which depicts the picture of what we applying. The model is based on assumption that the bureaucrat has monopoly in providing government services that the MNE needs in order to operate in the host county,( Dahlstrom and Johnson, 2004): 4.4.1Equation 1 Corruption if: à Ã¢â‚¬ ¡ à ¢Ã¢â‚¬ °Ã‚ ¥ c ( i) No corruption if: à Ã¢â‚¬ ¡ Where à Ã¢â‚¬ ¡ is an agents expected payoff from corruption and c is the expected cost. For corruption to take place à Ã¢â‚¬ ¡ à ¢Ã¢â‚¬ °Ã‚ ¥ c for all involved agents. 4.4.2 Equation 2 Equation two below presents payoff functions for the two types of agents. Payoff for MNE à Ã¢â‚¬ ¡mne = ÃŽÂ ²Ãƒ Ã¢â‚¬   ( ii) Payoff for bureaucrat à Ã¢â‚¬ ¡off = ÃŽÂ · Where ÃŽÂ ² is the probability that the bureaucrat indeed delivers the government service, à Ã¢â‚¬   signifies the value of that government service for the MNE and ÃŽÂ · signifies the size of the bribe. The payoff of corruption is simply the monetary value an agent can earn by realising the action. For an MNE the payoff of engaging in corruption could for example be the future cash flow connected to a building contract granted by the bureaucrat. For a bureaucrat the payoff of corruption is simply the size of the bribe (Dahlstrom and Johnson,2004). The probability variable ÃŽÂ ² has been discussed by (Shleifer and Vishny ,1993) among others and can be used to distinguish bribes from taxes. As discussed earlier, (Shleifer and Vishny, 1993) distinguish between centralised corruption where a single agent (bureaucrat) collects the bribe. Decentralised corruption implies that several individual bureaucrats can demand bribes. Therefore, even when having paid a bribe there is still a possibility that the MNE does not get access to the government service that it wants. This would force the MNE to pay yet another bribe to get the demanded service. Under a decentralised system of corruption it is more likely that additional bureaucrats would put up demands for bribes. This is one example of how corruption introduces an element of uncertainty for the MNE. For an economy where centralised corruption dominates we would expect ÃŽÂ ² to be close to one while decentralised corruption would imply a smaller value of ÃŽÂ ² (Dahlstrom and Johnson,2004). They went further citing that the cost of corruption for the bribed is normally the punishment that can be imposed on him if he is found guilty, while for the briber it is the expected cost of punishment as well as the size of the bribe that composes the cost. The culture in the host-country can be assumed to influence the willingness of the agents to engage in corrupt practices. In economies where corruption is frowned upon there should, ceteris paribus, exist less corruption than in an economy that accepts corruption. The general cost function shown in equation 3 below tries to take all of the above into account. 4.4.3 Equation 3 The general cost function cj= ((ÃŽÂ ´+ÃŽÂ ±)) p)+ ÃŽÂ · (iii) Where c j is the cost of the j:th bribe with j going from 1 to n, p signifies the perceived risk of being caught, the expected punishment is denoted ÃŽÂ ´, while ÃŽÂ ± represents the social cost of being revealed as engaging in corrupt behaviour and ÃŽÂ · is the monetary value of the bribe. For the bribed ÃŽÂ ·=0 while ÃŽÂ ·>0 for the briber. The social cost of corruption ÃŽÂ ± goes from to infinity where a low value signifies that corrupt behaviour is widely accepted and a high value signify a culture with a strong aversion against corruption. Similar cost components of corruption for the individuals can be found in (Sen,2002,). The risk of being caught is dependent on the effectiveness of the police as well as the legal system. (La Porta et al, 1999) argues that countries having common law are better protected against corruption since the legal system has stronger property rights. But the enforcement of the laws is of equal importance. Triesman, finds that is perhaps not only the use of common law that decreases the amount of corruption but also whether or not a country has been under British rule, thus having had a strong influence on the legal culture not only the legal system. By taking the first derivative of equation 3 with respect to ÃŽÂ ´ we get the sensitivity of punishment. As can be seen the punishment depicted in law is highly dependent on surveillance and enforcement to have a deterrent effect on corruption in a country. Many developing countries have all the laws and regulations demanded from the international society regarding corruption but suffer from a severe lack of enforcement of the l aws. Thus those laws have little effect besides working as cosmetics for an ugly economy in need of aid and trade relations with developed countries (Triesman,1999). 4.5 Social cost of corruption The social cost of corruption may be lower in countries with more hierarchal religions as Islam and Catholicism since it is less accepted to challenge those above you in the hierarchy than in religions such as Protestantism (Triesman, 1999). Furthermore, countries with hierarchical religions tend to have stronger family ties, than countries that practice Protestantism (Triesman, 1999) It can also be the case that in cultures where the distinction between the officials private and official power is less distinct bribery may have lower social costs. All these things tend to affect the social stigma attached to corruption thus increasing or decreasing the cost. According to (Dahlstrom and Johnson,2004) in order to develop the model we have to combine the cost and payoff functions described above in order to determine whether corruption takes place. We have rewritten equation 1 by incorporating equation 2 and 3 resulting in one set of equations for the MNE, Equation 4, and one set for the bureaucrat, Equation 5, below. 4.5.1Equation 4 MNE No corruption if: ÃŽÂ ²Ãƒ Ã¢â‚¬   ((ÃŽÂ ´+ ÃŽÂ ±) p) -ÃŽÂ · Corruption if: ÃŽÂ ²Ãƒ Ã¢â‚¬   ((ÃŽÂ ´+ ÃŽÂ ±) p) -ÃŽÂ ·Ãƒ ¢Ã¢â‚¬ °Ã‚ ¥0 (ii) Expected profit: à Ã¢â€š ¬MNE= ÃŽÂ ²Ãƒ Ã¢â‚¬   ((ÃŽÂ ´+ ÃŽÂ ±) p) -ÃŽÂ · (iii) 4.5.2Equation 5 Bureaucrat No corruption if: ÃŽÂ ·- ((ÃŽÂ ´+ ÃŽÂ ±) p) Corruption if: ÃŽÂ · ((ÃŽÂ ´+ ÃŽÂ ±) p) ÃŽÂ ·Ãƒ ¢Ã¢â‚¬ °Ã‚ ¥0 Expected profit: à Ã¢â€š ¬off = ÃŽÂ ·- ((ÃŽÂ ´+ ÃŽÂ ±) p) (iii) They went further, using 4.i and 5.i to solve for the expected profit of corruption for the MNE yields ÃŽÂ ²Ãƒ Ã¢â‚¬  =2 ÃŽÂ ·. This is only valid if we assume that all of the cost variables ÃŽÂ ´,ÃŽÂ ±, p are identical for both the MNE and the bureaucrat. This is a strong assumption since both the fines as well as the social cost probably are higher for the MNE than for the bureaucrat. If we assume that the value of the bribe, ÃŽÂ ·, is the reservation price for the bureaucrat due to the fact that the MNE has more bargaining power. 4.5.3Equation 6 Equation 6 below show the total monetary value of the bribes paid in an economy. This could be seen as the actual cost for the economy when we disregard the uncertainty of corruption. This uncertainty comes in two shapes, the one of getting caught and the one of fulfilling ones obligation. If the service would have been delivered as a tax service equation 6 would equal the tax cost the MNE would have paid. n Total monetary value of corruption (6) V= ÃŽÂ £v j 1 Where is the monetary value of the j:th bribe with j going from 1 to n, with n being the number of transactions where it may be possible to offer a bribe, vj = ÃŽÂ ·j if both 0 à ¢Ã¢â‚¬ °Ã‚ ¤ ÃŽÂ ² j -((ÃŽÂ ´ j + ÃŽÂ ± j)* p j) ÃŽÂ · j -(ÃŽÂ ´ j+ ÃŽÂ ± j)* p j for all other cases vj=0 . In a developing economy n can be assumed to be higher under decentralised corruption than under centralised corruption since there are probably a greater number of different bureaucrats that demand bribes in the former case than in the latter. 4.5.4 Equation 7 Equation 7 below gives an account for the total cost of corruption that MNEs experience in a country. Here we include the cost of uncertainty unlike equation 6. n Total corruption cost for the MNE (7) CMNE = ÃŽÂ £ c j 1 Where cj is the expected cost of the j:th bribe with cj=(ÃŽÂ ´ j+ ÃŽÂ ± j)* p j )+ ÃŽÂ ·j if both 0 à ¢Ã¢â‚¬ °Ã‚ ¤ÃƒÅ½Ã‚ ² j à Ã¢â‚¬  j ((ÃŽÂ ´ j+ ÃŽÂ ± j)* p j ) ÃŽÂ ·j and 0 à ¢Ã¢â‚¬ °Ã‚ ¤ ÃŽÂ ·j(ÃŽÂ ´ j+ ÃŽÂ ± j)* p j . If 0 à ¢Ã¢â‚¬ °Ã‚ ¤ÃƒÅ½Ã‚ ² j à Ã¢â‚¬  j ((ÃŽÂ ´ j+ ÃŽÂ ± j)* p j ) ÃŽÂ ·j but 0 à ¢Ã¢â‚¬ °Ã‚ ¤ ÃŽÂ ·j(ÃŽÂ ´ j+ ÃŽÂ ± j)* p j then cj=(ÃŽÂ ´ j+ ÃŽÂ ± j)* p j ) but for all other cases cj=0 Cost of corruption for the MNE IF à Ã¢â‚¬ ¡off à ¢Ã¢â‚¬ °Ã‚ ¥ c off then official chooses corruption IF à Ã¢â‚¬ ¡ off then official chooses no corruption IF à Ã¢â‚¬ ¡ à ¢Ã¢â‚¬ °Ã‚ ¥ CMNE then MNE chooses corruption cj=(ÃŽÂ ´ j+ ÃŽÂ ± j)* p j )+ ÃŽÂ ·j cj=(ÃŽÂ ´ j+ ÃŽÂ ± j)* p j IF à Ã¢â‚¬ ¡ MNE then MNE chooses no corruption 0 0 (Source: Dahlstrom and Johnson,2004) It is evident from the above equations 6 and 7 that, i.e. the actual cost of corruption for the MNE is greater than just the size of the bribe thus it would have been less costly for the MNE to invest in a country where the services would have been supplied as a tax service. Further corruption as opposed to a tax does not benefit the government but the individual bureaucrat. The tax income could, if used efficiently by the government, promote growth of direct investment through increasing the stock of human capital or improving market economy institutions. This tax income could also be used to combat corruption through the legal system or by raising the salaries of the government officials. But for taxes to be less damaging than corruption this does not have to be the case. The only necessary condition is that there is less uncertainty involved. Furthermore, companies seldom have the choice whether to pay tax or not so the corruption cost will be something that has to be paid in addition to taxes, ( Dahlstrom and Johnson,2004). 4. 6 Effect of the host country corruption from the analysis The resulting effect of host-country corruption is that the actual cost of conducting business activities in the country is higher than what could be expected based on observable costs such as wages or transport costs. Based on this reasoning, corruption gives rise to extra costs that the MNE has to operate in the host-economy. If MNE presence does reduce corruption while corruption has a negative effect on FDI there might exist virtuous or vicious circles. If there is little FDI in a country the corruption stays high which discourages the MNE to invest, thus decreasing the FDI. Here we have a vicious circle but the opposite is also possible. If an MNE invests in a country the corruption decreases this further improves the incentives for future investments. If one also assumes that both FDI and low corruption encourages growth the country who finds itself in a virtuous circle will have a much higher probability of development than one that finds itself in a vicious circle. We now proceed to try to develop an expression that describes the effect of host country bureaucratic corruption on FDI inflows. We start by introducing a profit function for the MNE: à Ã¢â€š ¬(à Ã‚ ,w,ņ¹)= max { à Ã‚ y c(w,y, CMNE ) where p indicates the world market price of the output y of the MNE, w is the cost of production factors and CMNE represents the MNE cost of corruption as earlier Use of the expression py implies that demand for the good in the host country is too small to have an effect on the price that the MNE receives for its output. This assumption is most suitable for an export-platform type of FDI as described in (Ekholm et al, 2003) where the MNE production in the host-country is exported to third country markets. This type of FDI is most likely to appear in developing economies where small domestic markets exclude market-seeking motivated FDI but with low labour costs. This implies that the profit function is most suitable for MNEs that operate in developing economies. It might be argued that the MNE only starts production in the host country if the expected profit from doing so is larger than some minimum level of profits: E(à Ã¢â€š ¬)=[ E(p)E(y) -c(E(w),E (y),E(CMNE ))] à ¢Ã¢â‚¬ °Ã‚ ¥ E(à Ã¢â€š ¬) where à Ã¢â€š ¬ is the minimum profit necessary for entry. Therefore, a rise in CMNE, the costs caused by corruption, should decrease the amount of FDI inflows that a host-country receives. It is also possible that MNEs that are already established in the host country decide to close down facilities if the costs of corruption become too high. (Cuervo-Cazurra , 2006) Although corruption has a negative impact on FDI because of the additional uncertainty and costs, such costs vary depending on the country of origin of the FDI. With respect to this topic, more FDI is gotten from OECD countries which are the rationale behind a corrupt country like Nigeria decreasing the quantity of its inward FDI because of the costs which the foreign MNC will have to incur to establish business in Nigeria. So therefore results show that the relationship between corruption and FDI is modified by the country of origin of the FDI.

Failure of Communism Essay -- Communism Essays

In theory, communism is a fantastic idea for society. According to Collin’s English Dictionary, communism is â€Å"a classless society in which private ownership has been abolished and the means of production and subsistence belong to the community† (Dictionary.com). While communism is most often erroneously associated with the Soviet Union and China, they are in fact a totalitarian deviation of the philosophical ideal. In a true communistic society, no government would be found. In a true communistic society, no government would be found. In practice, communism is doomed to fail due to the flaws of human nature. Two flaws in particular contribute to this collapse more than any other-- greed and pride. Greed is the man who needs what is not necessary for survival. Greed instills in men a thirst for power and wipes all charity from their thoughts. Pride is the man who looks down upon his peers, feeling that he is better than any other, or the man who seeks to ru le over them and guide them through his apparent wisdom. The governments of the former Soviet-Union and Romania, as well as present day North Korea, China and Cuba, are considered to be Marxist-Leninist states (a form of communism). These countries are ruled by a single, all-powerful government body, with a single individual as the head of that government. All people of the state are said to be equal, with no one above the other. Yet the ruler, advisors, and military live in better conditions than the commoners, already contradicting the basic ideals of communism. These governments take their hypocrisy one step farther by using the majority of the earnings of the citizens to support lavish lifestyles of the royal families or rulers, as well as the army of the nation... ...ny things, both good and bad. For pride and greed to be found, one must think of themselves and only themselves. Of course, ants can not do that. One could argue that we, as a species, need our flaws to survive. The failure of communism rests solely on our flaws as humans with greed and pride being at the forefront. Our inadequacies can be traced across every attempt at communism or form of communism. Until we evolve to the point of perfection, communism will not be able to exist without corruption and inevitable collapse. Works Cited Dictionay.com. n. p. Web. 20 Sept 2010. Conover, Adele. â€Å"To Fathom a Colony’s Talk and Toil, Studying Insects One by One.† The New York Times. 27 April 2009. n. pag. Web. 21 Sept. 2010. Rich, G.J. â€Å"A biochemical approach to the study of personality.† Journal of Abnormal and Social Psychology 23.2 (1928): 158-175. Print.

Greed in Macbeth Essay

The nature of humanity always forces individuals to choose between right and wrong. Sometimes, there is conflict between personal desires and moral decisions. In the play Macbeth, William Shakespeare illustrates humankind as dark and immoral. He displays the negative side of human nature through three of the main characters. First of all, Banquo who appears to be noble but succumbs to his desires. Secondly, Lady Macbeth reveals ambition that leads her to destruction. Lastly, Macbeth becomes engulfed in greed that leads to horrible deeds. Thus, Shakespeare emphasizes that greed overrules human kindness in human nature. Banquo reveals avariciousness in pursuit of his desires. He reveals his first cupidity when he hears Macbeths prophecies by the weird sisters. Banquo states (AS BANQUO SAYS TO ..): My noble partner/You greet with present grace and great prediction/Of noble having and of royal hope,/That he seems rapt withalspeak then to me, who neither beg nor fear/Your favours nor your hate. (I,iii,55-62). Banquo, who appears to be a noble man, also displays his greed by wanting to receive a great prediction just like Macbeth. Banquo also reveals his overriding by committing the sin of omission. After the assassination of Duncan, Banquo talks to himself: As the weird women promised:If there come truth from them/As upon thee, Macbeth, their speeches shine/Why, by the verties on thee made good,/May they be my oracles as well/And set me up in hope? (III,i,2-10). Banquo does not reveal the secret of the prophecies and his suspicion about Macbeth because Banquo believes that his prophecy will not come true if he exposes this secret information. Banquo did not act upon his greed, but his greediness of keeping secrets of the prophecies leads him to his death. Moreover, a promise between Macbeth and Banquo, stops Banquo from exposing their secrets. After hearing the news about their future, Macbeth says to ( ): If you shall cleave to my consent, when tis/It shall make honour for you (II,i,30-31). Since Macbeth promises to honor him, it makes it harder for Banquo to reveal the secret. There are some good qualities but also bad qualities in human nature that leads to a downfall. In addition to Banquo, Shakespeare illustrates much stronger greed in Lady Macbeth. After hearing the news about the prophecies, Lady Macbeth reveals  her imperial ambitions. The raven himself is hoarse/That croaks the fatal entrance of Duncan/Under my battlement. Come, you sprits/That tend on mortal thoughts! Unsex me here,/And fill me from the crown to the toe top full/Of direst cruelty; make thick my blood (I,v,36-41). Through Lady Macbeth, Shakespeare shows the powerful figure of a female character normally recognized as kind and obedient during this time. However, Macbeth ( no underline) presents a dark image of a female character that becomes evil in her desires for the future. Furthermore, Lady Macbeth convinces her husband to act upon his desire and his fate. As she knows Macbeth does not have the will to actively pursue the throne, she manipulates him: Was the hope drunkFrom this time/Such I account thy love. Art thou afeard/To be the same in thine own act and valour/As thou esteemst the ornament of life,/And live a coward in thine own esteem,/Letting I dare not wait upon I would,/Like the poor cat I the adage? (I,vii,35-44). Not only does Lady Macbeth carry out her own role, she also goads Macbeth into action to accomplish her desire. Lady Macbeths natural humanity is displayed when she is not able to kill Duncan herself because he resembles her father. This illustrates that she is trying to suppress her human nature and allow her ambition to rule. However, even after reaching her achieved goal, she is discontent throughout the rest of the play. Lady Macbeth expresses her feelings, but not to Macbeth: Noughts had, alls spent./Where our desire is got without content:/Tis safter to be that which we destroy/Than by destruction, dwell in doubtful joy./[Macbeth enters]why do you keep alone,/Of sorriest fancies your companions making;whats done is done. (III,ii,6-14). Even with her dissatisfaction, she keeps her emotion herself in order to keep her throne. The greed in human nature is so strong that it can overtake morality. Finally, and for the most significantly, Lady Macbeth encourages Macbeth to act upon his greed, and abandon his morals. Shakespeare illustrates Macbeth as evil from the beginning of the play. In his first entrance, he expresses his feelings of the day by saying: So foul and fair a day I have not seen. (I,iii,39). Since Macbeth believes that good is bad and bad is good, his ambition overtakes his virtuousness. Therefore, Shakespeare illustrates that humans can exemplify both good and evil. In addition, Macbeth reveals his desire to kill King Duncan when he is left alone in his chamber. I have not  spur/To prick the sides of my intent, but only/Vaulting ambition, which oerleaps itself/And falls on the other. (I,vii,25-28). Macbeths values are shown through his speech as he expresses abhorrence for killing Duncan. Lady Macbeth convinces her husband which leads him to act upon his deed. Later, Macbeth kills Banquo because of acquisitiveness. Macbeth feels insecure because of Banquos prophecies: When first they put the name of king upon me,/And bade them speak to him; then prophet-like/They haild his father to a line of kings:/Upon my head they placed a fruitless crown,/And put a barren scepter in my gripe,/Thence to be when chd with an unlined hand,/No son of mine succeeding. (III,i,62-68). Macbeth betrays his friendship because he believes that he had committed a horrible deed not for his descendants, but for Banquos. Even though Banquo had been so kind and loyal to him, Macbeth kills him to prevent Banquos son from gaining the throne he has killed for. When once greed overrules humanity, it will continue to control and force them to make rash decisions. Throughout the play, Shakespeare presents a dark side of human nature, with greed and ambition overcoming morality. First, by exemplifying Banquos avarice in order for his heirs to inherit the throne, Shakespeare establishes immorality through omission. Secondly, Lady Macbeths ambition overtakes her, and instead of supporting her husband, she pushes him to evil. Finally, Macbeth allows his goal and desires to control his life and lead him to a betrayal of Duncan, Banquo, and his own morality. Shakespeare, William. Book by Harold Bloom. Chelsea Publishing. 2000.

Chemical and Physical Properties of Gold

Gold is an element that was known to ancient man and has always been prized for its color. It was used as jewelry in prehistoric times, alchemists spent their lives trying to transmute other metals into gold, and it is still one of the most prized metals.   Gold  Basics Atomic Number: 79Symbol: AuAtomic Weight: 196.9665Discovery: known since prehistoric timeElectron Configuration: [Xe]6s14f145d10Word Origin: Sanskrit Jval; Anglo-Saxon gold; meaning gold - also Latin aurum, shining dawnIsotopes: There are 36 known isotopes of gold ranging from Au-170 to Au-205. There is only one stable isotope of gold: Au-197. Gold-198, with a half-life of 2.7 days, has been used to treat cancer and other illnesses. Gold  Physical Data Density (g/cc): 19.3Melting Point ( °K): 1337.58Boiling Point ( °K): 3080Appearance: soft, malleable, yellow metalAtomic Radius (pm): 146Atomic Volume (cc/mol): 10.2Covalent Radius (pm): 134Ionic Radius: 85 (3e) 137 (1e)Specific Heat (20 °C J/g mol): 0.129Fusion Heat (kJ/mol): 12.68Evaporation Heat (kJ/mol): ~340Debye Temperature ( °K): 170.00Pauling Negativity Number: 2.54First Ionizing Energy (kJ/mol): 889.3Oxidation States: 3, 1. The oxidation states -1, 2 and 5 exist but are rare.Lattice Structure: Face-Centered Cubic (FCC)Lattice Constant (Ã…): 4.080Specific Gravity (20 °C): 18.88CAS Registry Number: 7440-57-5 Properties In mass, gold is a yellow-colored metal, although it may be black, ruby, or purple when finely divided. Gold is a good conductor of electricity and heat. It is not affected by exposure to air or to most reagents. It is inert and a good reflector of infrared radiation. Gold is usually alloyed to increase its strength. Pure gold is measured in troy weight, but when gold is alloyed with other metals the term karat is used to express the amount of gold present. Common Uses for Gold Gold is used in coinage and is the standard for many monetary systems. It  is used for jewelry, dental work, plating, and reflectors. Chlorauric acid (HAuCl4) is used in photography for toning silver images. Disodium aurothiomalate, administered intramuscularly, is a treatment for arthritis. Where Gold Is Found   Gold is found as the free metal and in tellurides. It is widely distributed and almost always associated with pyrite or quartz. Gold is found in veins and in alluvial deposits. Gold occurs in sea water in the amount of 0.1 to 2 mg/ton, depending on the location of the sample. Gold Trivia Gold is one of the few elements that can be found in its native state.Gold is the most malleable and ductile metal. One ounce of gold can be beaten out to 300 ft2 or stretched into a wire 2000 kilometers long (1 ÃŽ ¼m thick).The melting point of gold is an assigned value, which serves as a calibration point for the International Temperature Scale and International Practical Temperature Scale.The gold ion in the 1 oxidation state (Au(I)) is called the aurous ion.The gold ion in the 3 oxidation state (Au(III)3) is called the auric ion.Compounds containing gold in the -1 oxidation state are called aurides. (Cesium and rubidium can form auride compounds)Gold is one of the noble metals. Noble metal is an alchemical term for metals that do not corrode under normal conditions.Gold is the seventh most dense metal.Metallic gold has no odor or taste.Gold has been used as jewelry since prehistoric times. Today, gold in jewelry is not pure gold. Jewelry gold is made of many different gold alloys .Gold is resistant to most acids. The acid aqua regia is used to dissolve gold.Elemental gold metal is considered non-toxic and occasionally used as a food additive.Transmuting lead into gold was one of the major gold of the alchemists. Modern nuclear chemists have found methods to accomplish this historic task.​ References   Los Alamos National Laboratory (2001), Crescent Chemical Company (2001), Langes Handbook of Chemistry (1952) International Atomic Energy Agency ENSDF database (Oct 2010)