CUSTOMER OWNERSHIP AND QUALITY PROVISION IN PUBLIC SERVICES UNDER ASYMMETRIC INFORMATION

The implementation of projects producing external effects is often a source of disagreement and conflict between hosting and nonhosting communities. The article focuses on the impact of participatory ownership on conflict resolution and social welfare in the presence of asymmetric information and imperfect quality monitoring. We show that in such situations the participatory solution may help solve deadlocks that money transfers to a for‐profit operator cannot solve. The analysis highlights three main factors behind this fact. First, a customer‐owned cooperative internalizes, at least partially, the external effects generated by the project. Second, the alignment of cooperative members' preferences with those of the social planner reduces (in some cases eliminates) the distortions caused by information asymmetries. Third, cooperatives require less costly monitoring than their for‐profit counterparts. We also show that cooperatives' productive inefficiency with respect to for‐profits may emerge endogenously as a consequence of a lower pressure to compete on costs for the market. (JEL H23, L33, P13)     

Strategic choices and strategic management accounting in large manufacturing firms

Journal of Management and Governance - This study examines the relationship between strategic choices and the use of strategic management accounting (SMA) techniques in large manufacturing...     

Measuring the Behavioural Component of the S&P 500 and its Relationship to Financial Stress and Aggregated Earnings Surprises

Scholars in management and economics have shown increasing interest in isolating the behavioural dimension of market evolution. Indeed, by improving forecast accuracy and precision, this exercise would certainly help firms to anticipate economic fluctuations, thus leading to more profitable business and investment strategies. Yet, how to extract the behavioural component from real market data remains an open question. By using monthly data on the returns of the constituents of the S&P 500 index, we propose a Bayesian methodology to measure the extent to which market data conform to what is predicted by prospect theory (the behavioural perspective), relative to the (standard) subjective expected utility theory baseline. We document a significant behavioural component that reaches its peaks during recession periods and is correlated to measures of financial volatility, market sentiment and financial stress with expected sign. Moreover, the behavioural component decreases around macroeconomic corporate earnings news, while it reacts positively to the number of surprising announcements.     

A neural network clustering model for miscellaneous components production planning

The growing importance of providing service to customers, e.g. post-sale assistance, supplying of spare parts, upgrading and integration of new elements in installed systems, enhances the importance of planning and management of upgrading parts in most manufacturing industries. These parts are generally characterized by high technical heterogeneity and have a highly variable and difficult to forecast demand. In some areas (especially the most dynamic, e.g. high-tech products), these kinds of components are quite common, and represent a very strong relation between the manufacturing firm and the market. These parts are generally too many to be efectively supported on a planning database system with individual records and too heterogeneous ( and sometimes with a too high value) to be supported all together in a single record. In this paper, we want to study the application of adaptive techniques for the clustering of these components in classes based on the similarities in their market behaviour in order to build an optimal database for planning production and supplying of these components.     

“I Know That You Know How I Feel”: Behavioral and Physiological Signals Demonstrate Emotional Attunement While Interacting with a Computer Simulating Emotional Intelligence

Human–human communication studies have suggested that within communicative interactions, individuals acknowledge each other as intentional agents and adjust their emotion nonverbal behavior according to the other. This process has been defined as emotional attunement. In this study, we examine the emotional attunement process in the context of affective human–computer interactions. To this purpose, participants were exposed to one of two conditions. In one case, they played with a computer that simulated understanding of their emotional reactions while guiding them across four different game-like activities; in the other, the computer guided participants across the activities without mentioning any ability to understand emotional responses. Face movements, gaze direction, posture, vocal behavior, electrocardiogram and electrodermal activity were simultaneously recorded during the experimental sessions. Results showed that if participants were aware of interacting with an agent able to recognize their emotions, they reported that the computer was able to “understand” them and showed a higher number of nonverbal behaviors during the most interactive activity. The implications are discussed.     

On Italian Households’ Economic Inadequacy Using Quali-Quantitative Measures

Motivated by an interest in investigating factors associated with poverty risks in Italy, our study provides insight into the relationship between various socio-economic, demographic, and behavioural variables and a new measure of the economic inadequacy of households. We propose that a household is in a condition of economic inadequacy when it simultaneously has difficulty making ends meet and is in arrears with payments of commitments for more than 90 days. To analyse the determinants of economic inadequacy, we use cross-sectional microdata collected through a structured questionnaire from a 2012 survey of household income and wealth conducted by the Bank of Italy. The results of the analysis show that the probability of economic inadequacy for Italian households is higher when the household is located in regions in southern Italy, has a low equivalent income, registers a decrease in income compared with that of a normal year, has a low liquidity ratio, pays rent for the house of residence, is over-indebted, is indebted to friends and relatives, and has an unhappy and impatient household head. We also propose constructing a composite indicator at the regional level that combines the percentage of households in relative poverty, as measured by the Italian National Institute of Statistics, and the percentage of households that we identify as existing in a condition of economic inadequacy. The composite indicator allows us to take into account some aspects of household living conditions that are not included in the measure of relative poverty.     

CONSUMPTION EXTERNALITIES AND MONETARY POLICY WITH LIMITED ASSET MARKET PARTICIPATION

This article explores the interaction between consumption externalities and limited asset market participation (LAMP) in the standard New‐Keynesian model. We assess the performance of simple Taylor‐type interest rate rules with respect to (a) equilibrium determinacy, (b) the model's ability to simultaneously generate output and inflation volatility similar to the pre‐Volcker era, and (c) the model's response to a technology shock. We find that when individual preferences are affected by average household consumption (Aggregate Consumption Externality), stronger externalities increase the range of LAMP for which multiple equilibria arise even if the policy rule satisfies the Taylor principle. The interaction of LAMP and externalities can generate vast inflation/output relative volatility in line with the one observed in the data in the 1970s. According to our analysis, consumption externalities also affect the responses of endogenous variables to total factor productivity shocks. (JEL E4, E5)     

Wholly proprietary versus wholly open knowledge strategies: some empirical evidences from Italian biotech firms

This paper focuses on biotechnologies and biotech companies. Our aim is to develop a model for assessing the openness degree of knowledge governance strategies, applying it to the biotech firms. Biotech production is described as an emerging meta-industry in the global economy, fostering through new products, many socio-economic fields. Its main features are: a close relationship among knowledge, innovation and competitiveness; the need for collaborative research; the importance of small firms. Our paper begins with a brief characterization of the biotech meta-sector. We then review the literature regarding the advantages and disadvantages of ??wholly proprietary?? versus ??wholly open?? knowledge strategies. Next we propose a model and report the main results of its application to biotech companies in Italy. In conclusion, we evaluate the degree of openness of the company knowledge strategies based upon empirical evidence from our research in the field.     

Age,Health and Life Satisfaction Among Older Europeans

In this paper we investigate how age affects the self-reported level of life satisfaction among the elderly in Europe. By using a vignette approach, we find evidence that age influences life satisfaction through two counterbalancing channels. On the one hand, controlling for the effects of all other variables, the own perceived level of life satisfaction increases with age. On the other hand, given the same true level of life satisfaction, older respondents are more likely to rank themselves as “dissatisfied” with their life than younger individuals. Detrimental health conditions and physical limitations play a crucial role in explaining scale biases in the reporting style of older individuals.