1,721,042 research outputs found
"Union-firm Bargaining as a Repeated Game and the Behaviour of Wages over the Business Cycle"
No full textThis paper studies a repeated game between a union and a firm in the presence of revenue fluctuations. The simple setup, mainly based on Schultz’s (1995) model, gives support to the idea that the existence of a long-term relationship may change the predictions of the static one-shot model of wage and employment determination in unionized labour markets. In particular, when revenue is fluctuating and the discount factor is moderate the players can commit themselves to some ‘second best’ strategies, rather than playing non-cooperative strategies. As a consequence of the enforcement problems a flat wage over the business cycle may arise. This analysis suggests that ‘second best’ strategies allowing for a pro-cyclical wage as well as for a counter-cyclical wage are feasible. However, when the discount factor decreases and approaches a certain threshold value the parties cannot do better than play a wage constant over the cycle. Moreover, the resulting wage varies less than the employment level, in accordance with the empirical evidence
“Are You a Doctor or a Quack? Provision of Quality and Self-regulation in a Market for Professional Services”. Working Paper CEIS-Tor Vergata, n° 167.
No full text"Market Failures in the Provision of Quality: a Critical Assessment and an Application to the Market for Professional Services” Technical Report n. 02-02, Dipartimento di Informatica e Sistemistica
No full textThe Impact of Unilateral Climate Policy with Endogenous Plant Location and Market Size Asymmetry
No full textThis paper analyses the impact of unilateral climate policy on firms' international location strategies in emission-intensive sectors, when countries differ in terms of market size. The cases of both partial and total relocation via foreign direct investment are separately considered. A simple international duopoly model highlights the differences between short-term and long-term effects. In the short-term no change in location is a likely outcome in very capital-intensive sectors and, when there is a strategy shift, this takes the form of partial rather than total relocation. In the long-run total relocation becomes a feasible outcome. However, when tighter mitigation measures are introduced by the larger country and unit transport cost is high, with a pronounced market asymmetry, the probability of firms not relocating abroad is high even in the long-term. The welfare implications of unilateral environmental measures are assessed considering global industrial pollution and accounting for shifts in location strategy
Foreign Direct Investment and Environmental Policy. Have Location Factors Been Neglected?
No full textForeign Direct Investment and Environmental Policy: Have Location Factors Been Neglected?
No full textThis paper analyzes the effect of asymmetric environmental policies on firms' international location strategies in pollution-intensive sectors, when countries differ in terms of market size. The model shows that, when the tighter mitigation measures are introduced by the larger country and unit transport cost is high, the probability of firms not relocating abroad via foreign direct investment increases with market asymmetry. Furthermore, in some key scenarios, the total relocation outcome predicted by the pollution haven hypothesis is never an optimal strategy. The analysis suggests that international environmental rules should take account of differences in countries' market size and thus ability to attract production
“Escaping the Stagnancy Trap. Unbalanced Growth and Employment in the Services”
No full textIn this paper we carry out an in-depth discussion of Baumol’s model of “unbalanced growth”, a fundamental reference to analyse the effects of technical progress and the long-term development of the service sector. Although some empirical evidence confirms the stylised facts of the model, its uncomfortable predictions cannot be considered as true. After 1973 productivity has slowed down in all industrialised countries and employment growth has concentrated in the slow-productivity service sector, but such outcomes are marked by high cross-country differences. Therefore, it is useful to identify what assumptions of the model may be relaxed in order to escape what we call the “stagnancy trap”. We find that new technologies and organisational improvements can expand the boundaries of the progressive sector and thus delay the asymptotic stagnation of aggregate productivity, even though they may leave the long-term tradeoff between productivity and employment growth unchanged
“Pricing Discretion and Price Regulation in Competitive Industries”. CEIS Tor Vergata – Research Paper Series, vol. 23, n. 69
No full textThe impact of unilateral climate policy with endogenous plant location and market size asymmetry
No full textThis paper analyses the impact of unilateral climate policy on firms' international location strategies in emission-intensive sectors, when countries differ in terms of market size. The cases of partial and total relocation via foreign direct investment are separately considered. A simple international duopoly model highlights the differences between short-term and long-term effects. In the short-term no change in location is a likely outcome in very capital-intensive sectors, and when there is a strategy shift this takes the form of partial instead of total relocation. In the long-run total relocation becomes a feasible outcome. However we found that, when tighter mitigation measures are introduced by the larger country and unit transport cost is high, with a pronounced market asymmetry the probability of firms not relocating abroad is high even in the long-term. The welfare implications of unilateral environmental measures are assessed considering global industrial pollution and accounting for shifts in location strategy
- …
