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Mostrando recursos 41 - 60 de 1,123
Innovation, specialization and growth in a model of structural change - Andergassen, Rainer; Nardini, Franco; Ricottilli, Massimo
The aim of this paper is to investigate the nexus between demand patterns and innovation as it stems from research efforts and the extent of specialization. In the proposed model an innovation race conducted by entrants investing in research and development against established incumbents raises productivity at the industry level and leads to a shift in the aggregate demand pattern and consequently to a redistribution of the profit fund among industries and a restructuring of the production process in each industry. The paper argues that the degree of development as reflected in a demand share distribution is characterized by a...
Consumption multipliers of different types of public spending: a structural vector error correction analysis for the UK - Marattin, Luigi; Salotti, Simone
The aim of this paper is to investigate the relationship between government spending and private consumption in the UK, for which there is scarce previous empirical evidence. We disaggregate public expenditure into three categories and search for the corresponding private consumption multipliers. Our analysis includes the estimation of a structural vector error correction (SVEC) model, using quarterly non-interpolated data for the period 1981:1 – 2007:4. Initially, we estimate negative effects on consumption of shocks to total public spending. Then, using the spending decomposition, we find that while shocks to public wages crowd-out private consumption as predicted by neoclassical models, shocks...
A welfare perspective on the fiscal-monetary policy mix: The role of alternative fiscal instruments - Marattin, Luigi; Marzo, Massimiliano; Zagaglia, Paolo
The need of fiscal consolidation is likely to dominate the policy agenda in the next decade; starting from statistical evidence on the conduct of fiscal policy in the EMU area over the last decade, this paper addresses the optimality of alternative fiscal consolidation strategies. We explore the welfare properties. In this paper we explore the welfare properties
of debt-targeting fiscal policy implemented through, alternatively, distortionary taxation on consumption, labour and capital income or productive and wasteful government expenditure.
We build a general equilibrium model with various distortions in order to evaluate the welfare ranking of alternative fiscal policy configurations under different monetary...
Persistence of Politicians and Firms’Innovation - Bellettini, Giorgio; Berti Ceroni, Carlotta; Prarolo, Giovanni
We empirically investigate whether the persistence of politicians in political institutions affects the innovation activity of firms. We use 12,000 firm-level observations
from three waves of the Italian Observatory over Small and Medium Enterprises, and introduce a measure of political persistence defined as the average length of individual political careers in political institutions of Italian municipalities. Standard OLS
shows no raw correlation between political persistence and firms' innovation activity. However, once the causal effect is isolated by means of instrumental variables, using death of politicians as an exogenous source of variation of political persistence, we find a robust negative relation between political...
Government Spending Under Non-Separability: a Theoretical Analysis - Marattin, Luigi; Palestini, Arsen
In this paper we derive analytic implicit form conditions for the qualitative analysis of government spending multipliers and the optimal level of government spending in presence of non-separability between private and public components of aggregate demand. Using the simplest neo-classical flexible price model with no capital accumulation, we show that Edgeworth dependence is not a suitable condition to utomatically assess the signs of the consumption and income multipliers, for which a more complex analysis must be carried out. We propose a detailed investigation of the form and the characteristics of the involved utility functions, which are crucial to such evaluation....
Corporate Social Responsibility in a Mixed Oligopoly - Lambertini, Luca; Tampieri, Alessandro
This paper investigates how CSR firms influence a Cournot oligopoly with pollution. We define as CSR a firm that takes into account not only its profits but also internalises its own share of the externality and is sensitive to consumer surplus. The CSR firm obtains higher profits compared to profit-seeking firms. Also, the presence of at least one CSR firm improves social welfare and makes the first best Pigouvian taxation more lenient for Cournot firms. Finally, the CSR firm may induce the other firms to invest in green technology.
Comparative Advantage Under Monopoly: A Note On the Role of Market Power - Bacchiega, Emanuele
We argue that it is the number of agents holding market power, rather than the presence of market power itself, that may force Ricardian economies into autarchy. We apply the concepts of monopoly equilibrium by Baldwin (1948) to the model of Cordella and Gabszewicz (1997) to show that, differently from the oligopoly case, trade always arises at a monopoly equilibrium whereas autarchy is never an outcome. As a consequence, monopoly Pareto-dominates oligopoly.
The effects of environmental taxes and quotas on the optimal timing of emission reductions under Choquet-Brownian uncertainty - Agliardi, Elettra; Sereno, Luigi
The effects of two environmental policy options for the reduction of pollution emissions, i.e. taxes and non-tradable quotas, are analyzed. In contrast to the prior literature this work endogenously takes into account the level of emissions before and after the adoption of the new environmental policy. The level of emissions is determined by solving the firm's profit maximization problem under taxes and fixed quotas. We find that the optimal adoption threshold under taxes is always larger than the adoption threshold under fixed quota, even in a setting characterized by ecological uncertainty and ambiguity - in the form of Choquet-Brownian motions...
Meeting at School. Assortative Matching in Partnerships and Over-Education - Tampieri, Alessandro
This paper argues that assortative matching may explain over-education. Education determines individuals' income and, due to the presence of assortative matching, the quality of the partner, who can be a colleague or a spouse. Thus an individual acquires some education to improve the expected partner's quality. But since everybody does that, the partner's quality does not increase and over-education emerges. Tax progression to correct over-education has ambiguous effects on the educational incentives according to the individuals' ability. We test the model using the British Household Panel Survey. The empirical results support our theoretical findings.
Co-Production and Managed Competition in Mixed Quasi-markets - Delbono, Flavio; Lanzi, Diego
In this paper, we provide a very simple model to shed light on the
issue of managed competition in mixed quasi-markets (i.e. regulated markets
in which social and for-proÖt Örms coexist). In doing this, we consider the
literature on mixed oligopolies as a reasonable reference point and try to enrich it
with the idea of quasi-market. Firstly, our results show that social Örms serve the
relatively richer portion of the population. Only relatively poor consumers buy
units of service from the proÖt-oriented Örm. Secondly, the socially-preferable
form of managed competition is to introduce coproduction practices and, hence,
to raise proÖt-oriented Örmís production costs. The diffusion of coproduction paradigms...
The Profitability of Small Horizontal Mergers with Nonlinear Demand Functions - Esfahani, Hamideh; Lambertini, Luca
We want to take a differential game approach with price dynamics to conduct an investigation into the consequences of horizontal merger of firms where the demand function is nonlinear. We take into consideration the open-loop equilibrium. We show that in relation to the fact that the demand is nonlinear and prices follow some stickiness an incentive for small merger exists, while it does not appear under the standard approach using a linear demand function.
Using Auctions for Pollution Rights as Indirect Incentives for Investments in Green Technologies - Fadaee, Mehdi; Lambertini, Luca
Acquired wisdom has it that the allocation of pollution rights to firms hinders their willingness to undertake uncertain R&D projects for environmental-friendly technologies. We revisit this issue in a model where firms strategically choose whether to participate in an auction to attain pollution permits, or instead invest in green R&D, to show that, somewhat counterintuitively, a side effect of the auction is in fact that of fostering environmental R&D in an admissible range of the model parameters.
Minimum Quality Standards in Hedonic Markets with Environmental Externalities - Ecchia, Giulio; Lambertini, Luca; Tampieri, Alessandro
We investigate the introduction of a minimum quality standard (MQS) in a vertically differentiated duopoly with an environmental externality. We establish that the MQS bites only if the hedonic component of consumer preferences is sufficiently strong. Then, we illustrate an underlying tradeoff between the beneficial effects of quality enhancement on prices and the associated undesirable increase in the environmental externality.
The Relationship Between Financial Risk Premia and Macroeconomic Volatility: Issues and Perspectives on the Run-Up to the Turmoil - Marzo, Massimiliano; Liu, Zhoushi; Zagaglia, Paolo
This note sketches the issues that arise while interpreting the relation between macroeconomic volatility and financial risk premia from the perspective of the standard consumption-based asset pricing model. The relation arises from the fact that all assets are priced by the same ‘pricing kernel’, given by the inter-temporal marginal rate of substitution in consumption of the representative investor.
Since the pricing kernel is a function of aggregate consumption, financial risk premia are positively related to consumption growth volatility. Therefore, from the perspective of this workhorse often employed in the academic debate, the persistent reduction in macroeconomic volatility can be considered...
Patent Races with Dynamic Complementarity - Blasco, Andrea
Recent models of multi-stage R&D have shown that a system of weak intellectual property rights may lead to faster innovation by inducing firms to share intermediate technological knowledge. In this article I introduce a distinction between plain and sophisticated technological knowledge, which has not been noticed so far but plays a crucial role in determining how different appropriability rules affect the incentives to innovate. I argue that the positive effect of weak intellectual property regimes on the sharing of intermediate technological knowledge vanishes when technological knowledge is sophisticated, as is likely to be the case in many high tech industries.
The Wage and Non-wage Costs of Displacement: Evidence from Russia - Lehmann, Hartmut; Muravyev, Alexander; Razzolini, Tiziano; Zaiceva, Anzelika
This paper is the first to analyze the costs of job loss in Russia, using unique new data from the Russian Longitudinal Monitoring Survey over the years 2003-2008, including a special supplement on displacement that was initiated by us. We employ fixed effects regression models and propensity score matching techniques in order to establish the causal effect of displacement for displaced individuals. The paper is innovative insofar as we investigate fringe and in-kind benefits and the propensity to have an informal employment relationship as well as a permanent contract as relevant labor market outcomes upon displacement. We also analyze monthly...
Corporate Governance, Corporate and Employment Law, and the Costs of Expropriation - Ecchia, Giulio; Gelter, Martin; Pasotti, Piero
It is one of the well-known cornerstones of corporate governance that (minority) share-holders are subject to a risk of being expropriated by the controller of the firm, i.e. either entrenched management under a dispersed ownership structure or a controlling share-holder under concentrated ownership. On the other hand, economic theory has increasingly begun to recognize the role of employees and other "nonshareholder constituencies" during the past years. While potential shareholders may be reluctant to invest if they are adequately protected against private benefits of control, stakeholders may be deterred from investing if they are subject to the risk of ex post...
Individual support for economic and political changes: Evidence from transition countries, 1991-2004 - Rovelli, Riccardo; Zaiceva, Anzelika
Using a unique dataset for 14 transition economies, we propose a new measure for individual evaluations of transitional reforms, which we use to study, for the first time, the evolution of support for economic and political reforms from 1991 to 2004. We show that support for economic changes has been increasing over time after an initial drop, while support for political reforms has generally been higher. Support attitudes are lower among the old, less skilled, unemployed, poor, and those living in the CIS countries, especially during the 1990s. We also find evidence that transition-related hardship, opinions on the speed of...
The Dynamics of Disease in a Regulated Vertically Differentiated Health System - Lambertini, Luca; Tampieri, Alessandro
We build up a differential game to investigate the interplay between the quality of health care and the presence of an evolving disease in a duopoly where patients are heterogeneous along the income dimension. We prove unicity, stability and perfection of the open-loop Nash solution. Moreover, we identify the admissible parameter region wherein price regulation achieves the twofold objectives of ensuring cares to all patients and eradicating the disease.