114 research outputs found
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Assessing Rural Resilience for Endogenous, Sustainable Development: An Emblematic Case
Full text linkRural communities are suffering increasing pressure due to several local and global, socio-economic, environmental and institutional changes. Despite the challenges, however, the focus on rural resilience for sustainable, endogenous development is increasing drastically. We aim to understand the factors which enable rural resilience by assessing an emblematic case of two bordering, rural areas, the capacity of which for resilience is remarkably diverse. We approached the study using a qualitative methodology, based on data collection taken from interviews and focus group with an indicator framework to assess their capacity for resilience. Factors of resilience clearly emerged from the results, and consistent qualitative evidence demonstrated the relevance of rural identity
A Theory of Justice of John Rawls as Basis for European Fiscal Union
Full text linkFiscal policies coordination, macro-stability purposes and provision of European public goods are undoubtedly economic goals of paramount importance when considering the implementation of Fiscal Union at European level. However, there is also a complementary component of moral nature embedded in the constitution of any fiscal system, that is reallocation of resources. The core idea of the paper is that A Theory of Justice of John Rawls can provide a new and compelling basis accounting for the institution of European Fiscal Union in the redistributive perspective since the European Union holds a) a scheme of mutually advantageous cooperation and b) a thick network of institutions which constitute a basic structure. The main outcome of this analysis is a European difference principle. This conclusion is then followed by a corollary: if the European institutions are to be shaped to reflect an arrangement of Rawlsian nature, they should also include Fiscal Union at European level
Effects of Releasing Capital Requirements: A DSGE Approach
Full text linkThis paper simulates a macroprudential policy of reduction in capital requirements, in line with the measures promoted by macroprudential authorities to face the effects of the recent pandemic crisis on real economy. We do that in an otherwise standard DSGE model augmented with a housing sector and a macroprudential regulator. Results show that a regulatory intervention aiming at reducing capital requirements entails a deep and prolonged recession, worsening financial and macroeconomic stability. Overall, it follows that the effects could be opposite to those desired. Two channels lead to this outcome: the financial channel of interest rates on deposits and loans, and the real estate channel of housing prices
Norms and financial incentives: A model of how to fund universities
Full text linkWe derive the optimal compensation contract when two asymmetrically verifiable tasks are tied together, a cultural norm of behavior coexists with a financial incentive, and the amount of public funds is also a concern. To formulate our ideas, we restrict our attention to higher education. The model generates at least three results. First, the monetary incentive for research crowds out the social teaching norm. Second, increased intrinsic motivation in teaching induces a social multiplier effect. Third, the government underfunds the university if the university's teaching standard is lower than that of the government to implement its teaching standard
Work Flexibility and Workplace Training in Italy Before and After the Jobs Act Reform
Full text linkThis paper analyses the complex relationship between work flexibility strategies and workplace training at the firm level, thus filling a gap in the relative literature that only takes into account supply-side factors and fails to discriminate between on- and off- the job training. To achieve this purpose, we discuss the implications of two different theoretical frameworks grounding on human capital theory and systemic flexibility, respectively, and go on developing alternative hypotheses on the association between the presence of temporary and part-time workers at firm-level and training investments, both off-the-job and on-the-job. By using data on Italian firms, we get different results according to the type of non-standard contract and training. Part-time and temporary contracts carry out distinct functions with respect to off-the-job and on-the-job training, respectively. The former is more consistent with the human capital approach, whereas the latter is in line with the strategic management approach. These results are discussed in view of a structural labour market reform enacted by the Italian government in 2015, the so-called “Jobs Act”.
Editorial Note
Full text linkDue to the pandemic event in the 2020 only the single issue (Vol. 11; Iss. 1-2) of the Review has been published and the first issue of the 2021 (Vol. 12 Iss. 1) has been published with a delay. First, I thank the Authors of these two issues for their appreciable patient. Second, I am pleased to inform that the Vol. 11, Iss. 1-2 - 2020 of the Review of Economics and Institutions is the first valuable contribution of the renewed team of Managing Editors. Since January 2020 Simona Bigerna (University of Perugia) and Amedeo Argentiero (Kore University of Enna) have joined Paolo Polinori (University of Perugia) and Lewis S. Davis (Union College) and will serve as new Managing Editors for the incoming years. With the 2019 Fall issue Antonio Minniti (University of Bologna), Andrea Presbitero (International Monetary Fund) and Francesco Venturini (University of Perugia) have completed their office and have left the managing board. I wish to warmly thank Antonio, Andrea and Francesco for their contribution to the Journal and for the work done in these years
Demand Elasticity in the Italian Power Market: a Bayesian Experiment under dual pricing scheme
No full textThis study run experiment aiming to provide a flexible and analytically elegant framework to reliably estimate the price elasticity of electricity demand. Inference pertains to the demand at hourly level in the Italian wholesale electricity market and uses individual demand bid data. Individuals' bids represent the ex-ante willingness to pay and thus allows for constructing a market demand grounded in the consumer behavior theory, by exploiting the duality approach. Bayesian econometric estimation is applied, relaxing homoskedasticity assumptions of the traditional linear regression model. It allows to identify robust results, showing that elasticity varies significantly among hours of the day, zone segmentation as well as the level of equilibrium price. Bayesian inference provides also the opportunity to include prior information sourced from previous studies and the institutional struc- ture governing the agents' behavior. This prior information involves some degree of uncertainty, for this reason Bayesian approach assigns it a probability distribution. Using Bayes rule, prior information are then updated according to the observed data. Results validate the market reform designed to foster competition and increase wel- fare even through the time-varying pricing schemes that trigger the consumers' price reaction
The Impact of Cash-Flow and the Main Components of the Capital Structure on Innovative Performances of European Firms
Full text linkThis study aims at investigating the impact of cash-flow, the main components of the capital structure, and R&D on innovative performances of firms, for seven EU countries. The analysis is carried out on data taken from the EU-Efige Survey, enriched with accounting data retrieved from the Amadeus Database (Bureau Van Dijk). We consider three measures of innovative performance: product innovations, process innovations and patents. The capital structure of the firms is evaluated through the short-term debt ratio, the long-term debt ratio and the equity to total assets ratio. We also include as explanatory variables in the econometric analysis R&D and a set of other control variables commonly employed in the empirical literature as determinants of firms’ innovative performance. The results reveal that internal financial resources (cash-flows) and R&D have the greatest importance for innovative performances; the availability of long-term bank loans, a significant export propensity and a greater firm size facilitate and stimulate firms to introduce new products and production processes. Some policy implications conclude the study
Macroprudential Policy: a Blessing or a Curse?
Full text linkAfter the destructive impact of the global financial crisis of 2008, many believe that pre-crisis financial market regulation did not take the “big picture” of the system sufficiently into account and, subsequently, financial supervision mainly “missed the forest for the trees”. As a result, the need for macroprudential aspects of regulation emerged, which has recently become the focal point of many policy debates. This has also led to intense discussion on the contours of monetary policy after the post-crisis “new normal”. Here, I review recent progress in empirical and theoretical research on the effectiveness of macroprudential tools, as well as the current state of the debate, in order to extract common policy conclusions. The work highlights that, despite the achievements in the literature, the current experience and knowledge of how macroprudential instruments work, their calibration, and the mechanisms through which they interact with each other and with monetary policy are rather limited and conflicting. Moreover, I critically survey and note the current challenges faced by macroprudential regulation in creating stable, yet efficient financial systems. At the same time, emphasize the importance of accepting that many risks may remain, requiring that we proceed prudently and develop better plans for future crises
The Political and Economic Role of Elites in Persecution: Evidence from Witchcraft Trials in Early Modern Scotland
Full text linkPersecution, as a political and economic phenomenon, can be abetted by the resources of a nation's elite. To demonstrate this, I focus on a case study: witchcraft trials in Early Modern Scotland (1563-1727), a largely agricultural economy. I find that favourable growing temperatures predict more trials. My main empirical specification survives various robustness checks, including accounting for outliers. During this time, witchcraft was a secular crime, and it was incumbent on local elites to commit resources to trying alleged witches. Turning to mechanisms, I find that positive price shocks to export-heavy, taxable goods predict more witch trials, while price shocks to Scotland's main subsistence commodity, oats, do not. This is consistent with the explanation that as elite income increased, more resources were devoted to witchcraft prosecutions; I cite anecdotal evidence that a different judicial proceeding, sexual trials in Aberdeen, experienced a similar trend