Measuring Consumption Externalities - Randon, Emanuela
Estimation and measurement of consumption externalities are still challenging problems in applied research. In this paper, externalities as Nash equilibrium are estimated using consumer demand theory and a large data set. We estimate Nash equilibrium consumption externalities in petrol budget shares of households living in a metropolitan
area in UK. The reaction curves are derived from an Almost Ideal Demand System (AIDS) with externalities. A continuous set of ten year cross sections from the Family Expenditure Surveys is used. In each year, income decile cohorts are created. Results of 2SLS with Panel Data are presented after 2SLS estimates with pooling cross...
Efficient Allocations, Equilibria and Stability in Scarf's Economy - Randon, Emanuela; Simmons, Peter
Scarf's economy has been a vehicle in understanding stability properties in exchange economies. The
full set of market equilibria and Pareto optimal allocations for this economy has not been analysed. This
paper aims to do that. Firstly, we examine the Pareto optima and we and three different classes. Only
Class I exhausts the aggregate endowments of all the goods. Class II and III involve throwing away
partially or totally one good in order to achieve Pareto efficiency. Secondly, we explore the price and
endowment distribution combinations which sustain the different Pareto Optima as market equilibria.
A Pareto optimum which involves throwing away the whole endowment of...
A Top Dog Tale with Preference Rigidities - Randon, Emanuela; Simmons, Peter
With preference rigidities we find Pareto optima of an exchange economy, some of which
involve unconsumed endowments. We show that such Pareto Optima can only be attained as
market equilibria if there is a top dog in the initial endowment distribution who is richer than the
other individuals. The most inegalitarian efficient allocation favouring the top dog is globally
stable and is in the core. For endowment distributions with a top dog, the core contains efficient
allocations more equal than the market equilibrium. A voting mechanism or government policy
can also offset the top dog’s power.
L’imposta sul valore aggiunto: regime ordinario e regime del margine a confronto. Il caso del mercato dell’arte - Candela, Guido; Randon, Emanuela; Scorcu, Antonello E.
In letteratura, il confronto tra i metodi di calcolo dell’imposta sul valore aggiunto (regime
ordinario e regime del margine) è limitato: si riduce al risultato di equivalenza ottenuto con aliquote
identiche e uniformi nelle diverse fasi della produzione e dello scambio. In questo lavoro
proponiamo un’analisi comparativa generale per stabilire la desiderabilità di un metodo rispetto
all’altro in relazione alla struttura delle aliquote, alla tipologia dei soggetti coinvolti, alle politiche
di commercializzazione. I risultati sono applicati per valutare il meccanismo di formazione dei
prezzi nel mercato dell’arte. Si propongono degli interventi di riforma per rendere il regime fiscale
neutrale e trasparente, incentivando scambi e investimenti.
A Reproducing Kernel Perspective of Smoothing Spline Estimators - Bianconcini, Silvia
Spline functions have a long history as smoothers of noisy time series data, and several equivalent kernel representations have been proposed in terms of the Green's function solving the related boundary value problem. In this study we make use of the reproducing kernel property of the Green's function to obtain an hierarchy of time-invariant spline kernels of different order. The reproducing kernels give a good representation of smoothing splines for medium and long length filters, with a better performance of the asymmetric weights in terms of signal passing, noise suppression and revisions. Empirical comparisons of time-invariant filters are made with...
The valuation of new ventures - Sereno, Luigi
Traditional tools fail to capture the value of new ventures, such as R&D
projects and start-up companies, because of their dependence on future
events that are uncertain at the time of the initial decision. In the real
options setting the value of these investments is the value of the follow-on
opportunities they may create. Our aim is to study the multicompound
option approach to value sequential investment opportunities taking into
account multiple interactions among real options.
Prospect theory and the law of small
numbers in the evaluation of asset prices - Luppi, Barbara
We develop a model of one representative agent and one asset. The
agent evaluates the earnings according to Prospect Theory and he does
not know exactly the stochastic process generating earnings. While
the earnings are generated by a random walk process, the agent considers
a Markovian process, according to which firm’s earnings move
between two regimes, represented by a mean-reverting process and a
trend process, as in Barberis, Shleifer and Vishny (1998). We study
how an agent who is loss averse evaluates the price of a stock when
she takes into account the wrong stochastic process. This twofold departure
from rationality determines permanent effects on stock prices,
even in long...
A suggestion for simplifying the theory of asset prices - Cesari, Riccardo
Using an ordinal approach to utility, in the spirit of Hicks (1962, 1967a), it is possible to greatly simplify the theory of
asset prices. The basic assumption is to summarize any probability distribution into its moments so that preferences
over distributions can be mapped into preferences over vectors of moments. This implies that assets, like Lancaster’s
(1966) consumption goods, are bundles of characteristics and can be directly priced, at the margin, in terms of the
market portfolio. Expected utility is not required and both St.Petersburg and Allais paradoxes may be easily solved.
Corporate taxation and its reform: the effects on corporate financing decisions in Italy - Bontempi, Maria Elena; Giannini, Silvia; Golinelli, Roberto
The aim of this paper is twofold. First, we measure the relationship between fiscal
variables and companies debt choices in Italy using a dynamic representation of the
modified pecking order model, where both trade-off and pecking order theories are
nested. Second, our estimation results are used, jointly with some tax simulations
undertaken with a company microsimulation tax-model (MATÍS), to assess the effects
on leverage of two recent tax reforms in Italy since 1996. Main results suggest that: (a)
fiscal effects are significant and robust explanations of firms’ financial behaviour; (b)
the reforms analysed are able to induce similar reductions in firms’ leverage, when
compared with the situation prevailing...
Reforming the Personal Income Tax and the Family Allowance in Italy: a Proposal - Matteuzzi, Massimo; Toso, Stefano
We illustrate a proposal to reform the personal income tax and the family allowance in Italy which aims at attaining a fair tax treatment of the family, laying emphasis on the redistributive processes in favour of large and poor households. Our proposal is based on a simplification of the tax rate schedule (with a reduction of income brackets) and a new design of the tax credits for dependents which implies the fiscal exemption of a sort of basic income, which is decreasing as the income of the household increases. The new scheme of supplementary tax credits for dependents, related to...
Nuovi strumenti per l’assistenza sociale - Bosi, Paolo; Matteuzzi, Massimo
In questo lavoro, dopo un esame delle recenti proposte in tema di riforma dell’assistenza, si analizzano due ipotetiche riforme relative all’introduzione di un istituto di contrasto della povertà rispettivamente in alternativa e in aggiunta agli assegni al nucleo familiare, di cui si analizzano, sulla base di simulazioni sul micromodello, gli effetti sulla spesa, sulla distribuzione del reddito e sugli indicatori di povertà.
New Criteria of Targeting Welfare in Italy: an Appraisal of the Distributive Effects - Baldini, Massimo; Bosi, Paolo; Toso, Stefano
Means-tested social assistance programs have acquired, in the last two decades, an increasing role in the majority of industrialised countries. Although the issue of whether social assistance should be targeted or universally granted remains a main subject of dispute (Harding et al. 1994; Mitchell 1995; Smolensky et al. 1995; Atkinson 1995, 1998), the shift towards targeting is in practice quite widespread, mainly reflecting the wish to curb social security budgets in a general context of fiscal restraint. The issue of targeting welfare assumes a particular importance in Italy, whose social assistance programs resemble more the rudimentary regimes typical of Southern...
Transizione demografica e formazione del risparmio delle famiglie italiane - Baldini, Massimo; Mazzaferro, Carlo
This paper studies the relationship between population ageing and saving formation by Italian households. We use five cross-sectional budget surveys to separately construct the age and cohort profiles of the saving rate. After detrending the data, we isolate the age and cohort effects on saving. Cohort effects show that, in the current Italian population, saving behaviour is markedly different across generations. The estimates obtained on survey data are then used to derive a forecast of the medium and long run tendency of the household saving rate (2000-2050). In the absence of any changes in the saving behaviour of young cohorts,...
Brain Drain and Fiscal Competition. A theoretical model for the Europe. - Giannoccolo, Pierpaolo
In this paper we study Brain Drain (BD) and Fiscal Competition (FC) in a unified framework for the European Union (EU) specific context. Potential mobility of educated workers can increase the degree of FC through taxation or the provision of public education. An increase in FC can be caused by competition among different jurisdictions that aim to attract educated workers. When the importance of FC increases, then the European States may employ FC as a new policy tool. First, we analyze FC and BD with reference to EU regions. In this instance, the EU may find incentive to control the...