Income inequality and self-reported values

What is the relationship between income inequality and the values people endorse? Using survey data from all thirty-four OECD countries over a period of almost thirty years, we investigate the following dimensions of value systems: work ethic, civism, obedience, honesty, altruism, and tolerance. In most cases, no robust relation to income inequality is detected. However, we find some evidence that larger income disparities are associated with a stronger work ethic. This suggests that income inequality might spur hard work not only through pecuniary incentives but also because it makes people attach a symbolic value to being laborious.     

CONGLOMERATES AND REGULATION

Conglomerates operating integrated productions in different regulated and unregulated sectors may benefit of scope economies. However, the precise size of these synergies is often unknown to both rival firms and regulators. We show that the conglomerate's private information on scope economies may negatively affect both the regulated and the unregulated sectors depending on the precise nature of competition (strategic substitutes or complements). We also unveil a novel effect of regulation that involves an informational externality to the conglomerate's rivals. Notwithstanding these complications, and independently of the nature of competition, we show that in our model it is desirable, as for welfare, to let the firm run integrated productions, unless diseconomies of scope may realize. (JEL L51, L43, L52)     

The role of the board in shaping foundations’ strategy: an empirical study

This paper investigates the relationships of the choice of philanthropic strategy with board capital (diversity and networks), board activities (board processes, internal board committees, and board effectiveness), and CEO leadership. Using a sample of 110 Italian foundations, the research shows that board processes have the strongest positive association with an evolved strategic approach to philanthropic institutional grant-giving, while board diversity and strong CEO leadership are associated with the strategic approach only under certain conditions. In particular, good governance processes (e.g., training the board, self-evaluation of trustees, setting the stage for effective board and committee meetings, implementing control software, and steering meetings to improve the board’s analysis) are positively associated with evolved strategic approaches to philanthropy (e.g., signaling other funders for the best grantees, improving the performance of grant recipients, and advancing selected social fields’ state of knowledge and practice).     

A level playing field for migrant entrepreneurs? The legal and policy landscape across EU and OECD countries

Migrant entrepreneurship has been recognized as a form of integration in the country of destination and a viable alternative of decent and sustainable employment for migrants. Laws and policies can create barriers or support migrants who start a business in the country of destination. Despite their importance, these laws and policies have received scant attention from academic scholarship. By applying the mixed embedded approach, this article analyses the institutional and policy framework for migrant entrepreneurs in European Union (EU) and Organisation for Economic Cooperation and Development (OECD) countries, and how this framework varies according to the migrants’ individual legal status and gender. In order to do so, this article draws upon the findings of two different studies conducted on the topic. The first one analyses the national institutional framework for migrant entrepreneurs of these countries. The second study consists of a review of measures to foster migrant entrepreneurship in the same sample of countries. On the one hand, this article shows that the institutional framework restricts access to self-employment for some categories of migrants (e.g. based on their legal status). On the other hand, a wide range of measures are now available to support migrant entrepreneurs. However, these measures treat them as a rather homogeneous group. These findings suggest that the fact that some migrants are less engaged in self-employment or face more difficulties may be explained by the lack of institutional opportunities and policy support.     

Drivers of Change in the Democratic Republic of Congo: The Role of China in Re-Shaping the Country

Africa has always been potentially one of the richest continents in the world, but, due to a series of causes (colonization and decolonization process, wars, dictatorships etc.) it has never reached its full potential. The fight against poverty has been carried out by different institutions at the multilateral and bilateral level during the last 30 years, but the route toward economic development seems to be still long for African countries. This paper will focus on the analysis of the new approach to international cooperation introduced by the People’s Republic of China in order to exchange rights of exploitation of Africa’s mining and natural resources with large amounts of capital without any conditionality. The case-study which will be considered is the agreement concluded between the People’s Republic of China and the Democratic Republic of Congo.     

Comparing aggregate and disaggregate forecasts of first order moving average models

This paper compares the performance of “aggregate” and “disaggregate” predictors in forecasting contemporaneously aggregated vector MA(1) processes. The necessary and sufficient condition for the equality of mean squared errors associated with the two competing predictors is provided in the bivariate MA(1) case. Furthermore, it is argued that the condition of equality of predictors as stated by Lütkepohl (Forecasting aggregated vector ARMA processes, Springer, Berlin, 1987) is only sufficient (not necessary) for the equality of mean squared errors. Finally, it is shown that the equality of forecasting accuracy for the two predictors can be achieved using specific assumptions on the parameters of the vector MA(1) structure.     

The social stratification of time use patterns

Time use is both a cause of social inequality and a consequence of social inequality. However, how social class stratifies time use patterns is seldom studied. In this paper, I describe the time use patterns in the years 1983 and 2015 by social class, and gender in the British context. Using sequence analysis methods, I show how the diversity of time use patterns in British society is socially stratified. I find that 13 clusters capture the heterogeneity of time use patterns and that these clusters are associated with social class, gender, and day of the week. These clusters capture patterns of paid and unpaid work schedules, as well as leisure patterns. The results show that men have experienced a reduction of the standard Monday to Friday 8-hr working day, while women have experienced a general increase in this type of schedule. On the other hand, patterns of domestic working days have reduced for women and increased for men. Important differences exist in paid and unpaid work patterns between social classes. Working-class women have experienced an important increase in shift work on weekends. They are also much more likely to be doing unpaid work on weekdays compared to upper-class and middle-class women. Working-class men are more likely to experience non-working days and leisure days on both weekdays and weekends and are more likely to be doing shift work. They are also more often doing unpaid work on weekdays compared to men in upper-class households. Patterns of childcare indicate that all families have increased their childcare time. Men in upper-class households in particular have experienced an important growth in childcare time between 1983 and 2015. I conclude by discussing how time use can further our understanding of social stratification.     

Econometrics exams and round numbers: Use or misuse of indirect estimation methods?

The use of Monte Carlo methods to generate exam datasets is nowadays a well-established practice among econometrics and statistics examiners all over the world. Its advantages are well known: providing each student a different data set ensures that estimates are actually computed individually, rather than copied from someone sitting nearby. The method however has a major fault: initial “random errors,” such as mistakes in downloading the assigned dataset, might generate downward bias in student evaluation. We propose a set of calibration algorithms, typical of indirect estimation methods, that solve the issue of initial “random errors” and reduce evaluation bias. Ensuring round initial estimates of the parameters for each individual dataset, our calibration procedures allow the students to determine if they have started the exam correctly. When initial estimates are not round numbers, this random error in the initial stage of the exam can be corrected for immediately, thus reducing evaluation bias. The procedure offers the further advantage of rounding markers’ life by allowing them to check round numbers answers only, rather than lists of numbers with many decimal digits¹.     

A fair solution to the compensation problem

We deal with a fair division model concerning compensation among individuals endowed with different, non transferable, personal talents. We construct social orderings over all conceivable allocations based on efficiency, fairness, and robustness properties. Relying on orderings gives us the possibility of deriving the appropriate public policy even if incentive constraints arise.     

Estimating multiple-membership logit models with mixed effects: indirect inference versus data cloning

Multiple-membership logit models with random effects are models for clustered binary data, where each statistical unit can belong to more than one group. The likelihood function of these models is analytically intractable. We propose two different approaches for parameter estimation: indirect inference and data cloning (DC). The former is a non-likelihood-based method which uses an auxiliary model to select reasonable estimates. We propose an auxiliary model with the same dimension of parameter space as the target model, which is particularly convenient to reach good estimates very fast. The latter method computes maximum likelihood estimates through the posterior distribution of an adequate Bayesian model, fitted to cloned data. We implement a DC algorithm specifically for multiple-membership models. A Monte Carlo experiment compares the two methods on simulated data. For further comparison, we also report Bayesian posterior mean and Integrated Nested Laplace Approximation hybrid DC estimates. Simulations show a negligible loss of efficiency for the indirect inference estimator, compensated by a relevant computational gain. The approaches are then illustrated with two real examples on matched paired data.