Resolving an Insurance Allocation Problem: A Procedural Approach

In this paper we study the problem of the determination of a fair allocation in a co-insurance problem, i.e., how some insurance companies have to share the risk and the premium. We develop two procedures that produce a proportional and an equitable allocation, respectively. The procedures are applied to a real situation arising from environmental risk and the resulting allocations are compared with the classical quota share allocation and with an envy-free allocation resulting from a procedure presented in Fragnelli and Marina (Insur. Math Econ 33:75–85, 2003).     

Emergy-based Simulation to Assess Brazil’s Long-term Carrying Capacity: Environment, Electricity and Population

A macroscopic mini-model of Brazil’s electrical generating capacity (BRAZELECTRIX, Brazilian Electricity Matrix) was developed using the Energy Systems Language and simulated with iconographic Extend® software to explore long-term (200 years) population carrying capacity. South American reserves of natural gas (NG) and Brazilian stream hydro-power potential were assumed as the main inputs to electric power production. Energy values (e.g., kWh, joules) for fuels, electricity and environment were transformed to solar emergy (i.e., solar equivalent joules) to simplify cross comparison with a single metric. BRAZELECTRIX was calibrated using a holistic method that used mean component life-times and conservation of material and energy for each individual unit. Validation of BRAZELECTRIX, based on historical data, gave a root mean square error of 8% for hydroelectricity and 28% for natural gas use. Investments in natural gas infrastructure (e.g., contracts, pipelines, processing plants and electric power plants) accelerated Brazil’s expansion of electrical generating capacity for a finite period, allowing the country to reach its renewable (hydro-power only) carrying capacity 100 years sooner than without (2040 vs. 2140). Brazil has a total of 560 zetta-solar equivalent joules per annum (1 Zseja = 1 ×10²¹ sej per year) of stream hydro-power potential; 170 Zseja is currently used for electricity generation. According to BRAZELECTRIX, eventually 390 Zseja will be tapped for hydroelectricity. The standard of living, as measured by annual per capita electrical solar emergy, had risen 680% from 166 tera-solar equivalent joules (Tseja) to 1130 Tseja during the 35 year period following 1965 and was predicted to increase another 75% to its maximum (1973 Tseja) in 2050. By comparison, an urbanizing state of the United States (North Carolina) had an annual per capita electrical solar emergy of 7815 Tseja in 1992, indicating that Brazil could reach a living standard, as measured by per capita electricity usage, equal to one-forth the level of United States. Macroscopic mini-models combined with emergy accounting evaluated long-term paths for Brazil’s electricity supply and related it to natural environment trade-offs to demonstrate how sustainable carrying capacity of a developing nation can be forecast.     

Search and Recombination Process to Innovate: A Review of the Empirical Evidence and a Research Agenda

The view of innovation as a process of searching and recombining existing knowledge elements has been adopted in several industries. The innovation management literature has recognized the fundamental role that search and recombination play in innovation development. However, the relevant research has provided complex, fragmented and mixed results. The authors aim to identify areas of convergence and provide directions for future research by collecting empirical evidence regarding how firms conduct the search and recombination process. They conducted a systematic literature review of 87 empirical articles in the innovation management field. The review reveals differences among the solutions adopted both within and across organizational boundaries. Specifically, it shows that the variety and diversity of knowledge elements are critical in creating breakthrough innovations. Therefore, this paper discusses how to provide access to a variety of knowledge elements. It also highlights other fundamental questions calling for further investigation, such as how scientific knowledge elements are successfully recombined and how recombination and search dynamics occur in small and medium‐sized firms. The review concludes by summarizing the current state of affairs and suggests promising directions for future investigation.     

Inequality of opportunity in Italy

In this paper we provide a methodology to measure opportunity inequality and to decompose overall income inequality in an “ethically offensive” and an “ethically acceptable” part. Moreover, we analyze inequality of opportunity in Italy. According to our results, inequality of opportunity accounts for about 20% of overall income inequality in Italy. Moreover, the regions in the South are characterized by a higher degree of opportunity inequality than the regions in the North, especially when considering population subgroups by gender.     

How to Reverse the Italian Brain Drain: A Master Class from Australia

This article discusses the limits of Italian immigration policies and their effects on the Italian market of highly skilled individuals. Italian statutory provisions aimed at regulating immigration focus on limiting immigration without a reasoned distinction being made between skilled and unskilled immigrants. The first part of the article argues that a combination of historical and sociological factors makes Italy uncompetitive in the global market of highly skilled individuals. The second part suggests two pilot schemes for policies that might help in addressing the issue. First, the introduction of a medium‐/long‐term visa for highly skilled individuals, and second, the establishment of private multinational universities modelled on the European Institute (EI) in Florence. These new institutions would open up the academic job market to overseas researchers and, at the same time, would provide a more solid base for the retrieval of Italian academics working abroad.     

Income distribution determinants and public spending efficiency

This paper examines the impact of public spending on income distribution in OECD countries, paying attention in particular to the impact of the quality of education and public institutions. The paper assesses the efficiency of public spending in improving income distribution by using Data Envelopment Analysis. The empirical analysis shows the existence of both input and output inefficiencies across countries when relating public social spending to the inequality in income distribution.     

Two-sided market situations with existing contracts

The main aim of this paper is to study two-sided market situations where there are existing contracts which are exogenously given. These existing contracts could come from a previous competitive period or from any other circumstances. In any case, all these existing contracts provide an initial feasible solution for the two-sided market situation, perhaps non optimal in the sense the agents do not obtain jointly the maximum profit that they could get by cooperation. Therefore, the agents could be interested in improving their results through cooperation but taking into account the existing bilateral contracts. Thus, taking as starting point what each agent has got with the existing contracts, they have to distribute among themselves the extra amount that they could get by cooperation. For this kind of cooperative situation we propose different models and prove some results about the nonemptiness of the core and its relationship with the Owen set.