DO WOMEN PAY MORE FOR CREDIT? EVIDENCE FROM ITALY

By using a unique and large data set on loan contracts between banks and microfirms, we find robust evidence that women in Italy pay more for credit than men, although we do not find any evidence that women borrowers are riskier than men. The male/female differential remains even after controlling for a large number of characteristics of the type of business, the borrower, and the structure of the credit market. The result is not driven by lack of credit history, nor by women using a different type of bank than men, since the same bank charges different rates to male and female borrowers.     

Influenza-Like Illness Among University Students: Symptom Severity and Duration Due to Influenza Virus Infection Compared to Other Etiologies

Abstract

Objective: University students with influenza-like illness (ILI) were assessed to determine whether symptom severity, duration, or missed days of school or work varied according to etiology. Participants: Sixty persons presenting to a university health clinic with ILI symptoms during 3 consecutive influenza seasons completed baseline survey and viral testing; 51 (85%) completed follow-up. Methods: Influenza viral culture and polymerase chain reaction and respiratory virus immunofluorescence assay testing were performed. Information collected at baseline and follow-up included symptom occurrence, severity, duration, and numbers of days of work and school missed. Results: Influenza virus was confirmed in 63% of participants. Influenza-positive individuals were no more likely to report any symptom or miss more days of school or work. Self-reported severity and durations of symptoms were similar between groups. Conclusions: Students with influenza-associated ILI were similar to those with noninfluenza ILI with respect to severity, duration, and numbers of days of school and work missed.     

The Role of Society in Engineering Risk Analysis: A Capabilities-Based Approach

This article proposes a new conceptual framework in engineering risk analysis to account for the net impact of hazards on individuals in a society. It analyzes four limitations of prevailing approaches to risk analysis and suggests a way to overcome them. These limitations are a result of how societal impacts are characteristically accounted for and valued. Prevailing approaches typically focus too narrowly on the consequences of natural or man-made hazards, not accounting for the broader societal impacts of such hazards. Such approaches lack a uniform and consistent metric for accounting for the impact of the nonquantifiable consequences (like psychological trauma or societal impacts) and rely upon implicit and potentially inaccurate value judgments when evaluating risks. To overcome these limitations, we propose an alternative, Capabilities-Based Approach to the treatment of society in risk analysis. A similar approach is currently used by the United Nations to quantitatively measure the degree of development in countries around the world. In a Capabilities-Based Approach, the potential benefits and losses due to a hazard are measured and compared in a uniform way by using individual capabilities (functionings individuals are able, still able, or unable to achieve) as a metric. This Capabilities-Based Approach provides a foundation for identifying and quantifying the broader, complex societal consequences of hazards and is based on explicit, value judgments. The Capabilities-Based Approach can accommodate different methods or techniques for risk determination and for risk evaluation and can be used in assessing risk in diverse types of hazards (natural or man-made) and different magnitudes that range from minor to catastrophic. In addition, implementing a Capabilities-Based Approach contributes to the development of a single standard for public policy decision making, since a Capabilities-Based Approach is already in use in development economics and policy.     

The role of the drift in I(2) systems

Summary This paper discussed the role of the drift in vector autoregressive processes allowing for integrated components up to order 2. It is shown how the drift can generate linear and quadratic deterministic trends. A two-stage statistical analysis of the system in the presence of quadratic trends is proposed. The analysis of the system allows to define a consistent sequence of tests on the numbers of common components integrated of a given order, called the integration indices of the system. The relevant asymptotic distributions are non-standard, belong to the Limiting Gaussian Functional family and are tabulated by simulation. The proposed procedure can also be consistently combined with other procedures proposed by the author for the cases of a linear trend and of no deterministic trends in the system. Invited paper at the Conference held in Bologna, Italy, 27–28 May 1993, on “Statistical Tests: Methodology and Econometric Applications”. Partial financial support is acknowledged from Italian MURST grants 40% and 60%.     

Understanding dynamism and complexity factors in engineer-to-order and their influence on lean implementation strategy

Complexity and dynamism are considered intrinsic features of engineer-to-order (ETO) business environment; it is, therefore, important to understand and manage them better. Based on empirical investigation into two case companies, this paper expands the existing literature on how and why complexity and dynamism context factors constitute not only external business environment issues but also subfactors within the boundary of the firm. It argues that most of the subfactors for complexity and dynamism identified for repetitive manufacturing are relevant for the high uncertainty capital goods manufacturing ETO with some exceptions such as short product life cycle and technological turbulence. A framework of configuration (on implementation of lean practices), and moderation (on the lean-operations performance relation) forms of influence from dynamism and complexity is proposed. Further arguments to be verified in future large-scale research include: (1) dynamism bears challenges, and complexity provides opportunities to foster implementation of relevant lean practices in ETO, (2) both complexity and dynamism positively mediate better operations performance and enriched value from implemented lean practices.     

Robust confidence intervals for log-location-scale models with right censored data

In this paper, we combine empirical likelihood and estimating functions for censored data to obtain robust confidence regions for the parameters and more generally for functions of the parameters of distributions used in lifetime data analysis. The proposed method works with type I, type II or randomly censored data. It is illustrated by considering inference for log-location-scale models. In particular, we focus on the log-normal and the Weibull models and we tackle the problem of constructing robust confidence regions (or intervals) for the parameters of the model, as well as for quantiles and values of the survival function. The usefulness of the method is demonstrated through a Monte Carlo study and by examples on two lifetime data sets.     

Reservation Wages: Explaining Some Puzzling Regional Patterns

We use the Italian Labour Force Survey and the European Household Panel Survey to analyse the distribution of the reservation wages reported by job‐seekers. In Italy, reservation wages appear to be higher in the South — the low‐income and high‐unemployment area of the country — than in the North and Centre. A similar, rather counterintuitive, pattern can also be found in Finland, France, and Spain. First, we show that the way in which these data are commonly collected generates double‐selection bias. Second, we show that this bias has a strong effect on the estimation of the geographical pattern of reservation wages in many countries. The size of this bias is substantial in Italy. When controlling for it, reservation wages are at least 10 per cent higher in the North and Centre than in the South.     

Can the EU funds promote regional resilience at time of Covid-19? Insights from the Great Recession

This paper makes some contributions to the policy discussion on Covid-19. We present real-time evidence on the effects of the coronavirus crisis on regional employment in Italy, by finding that the current shock is producing major adverse consequences in the South and on female occupation. We document that both the absorption and the allocation of the EU funds can sustain the resilience of regional labour markets, by reducing the employment losses at time of Covid-19. We construct regional employment adjustment scenarios based on information and estimates observed during the Great Recession. We discuss the limits of our approach and future developments.     

The Europe 2020 Index

This paper presents a new index to quantify, measure and monitor the progress towards the objectives of the Europe 2020 strategy. This index is based on a set of relevant, accepted, credible, easy to monitor and robust indicators presented by the European Commission at the time the strategy was launched. The internal analysis of the index shows that the Smart and the Inclusive growth dimensions of the strategy are strictly correlated and that the trade-offs between each of these two dimensions and the Sustainable one exist but are decreasing, suggesting that a change towards more sustainable models of development is occurring in Europe. The external analysis of the index shows that it can be a valid measure to assess the overall competitiveness of countries and that the most critical factors for this strategy to be successful are good governance and social capital.     

Aid,Budgets and Accountability: A Survey Article

This article surveys the recent literature relating to the rationale for scaling up aid and improving its effectiveness. Modalities such as General Budget Support (GBS) are being introduced to increase country ownership and strengthen budget systems and domestic accountability. However, recent assessments of GBS programmes and Public Financial Management (PFM) reforms highlight a number of shortcomings which call into question the role of donors in supporting institutional change. Political‐economy factors are often overlooked. Moreover, in a number of countries, donors are deeply involved in core policy processes, undermining their capacity to play a more constructive role. As a consequence, the strengthening of domestic accountability remains an elusive objective.