Using the Hybrid Two-Step estimation approach for the identification of second-order latent variable models

The aim of this paper is to define a new approach, called Hybrid Two-Step, to estimate the parameters of a second-order latent variable (LV) model in the case of formative relationships between the first-order and the second-order LVs. In this respect, we introduce the two main approaches to the estimation of second-order constructs through the partial least squares-path modelling: the so-called Repeated Indicators approach and the Two-Step approach. Some criticisms of these methodologies are highlighted and a solution to the issue of the identification of formative second-order constructs is suggested through the adoption of a Hybrid Two-Step approach. A Monte Carlo simulation study aimed at comparing the approach proposed with the traditional ones was performed. Finally, a case study about the passenger satisfaction is presented to show the implementation of the method and to give some comparative empirical results.     

A Comparison Between Probabilistic and Dempster‐Shafer Theory Approaches to Model Uncertainty Analysis in the Performance Assessment of Radioactive Waste Repositories

Model uncertainty is a primary source of uncertainty in the assessment of the performance of repositories for the disposal of nuclear wastes, due to the complexity of the system and the large spatial and temporal scales involved. This work considers multiple assumptions on the system behavior and corresponding alternative plausible modeling hypotheses. To characterize the uncertainty in the correctness of the different hypotheses, the opinions of different experts are treated probabilistically or, in alternative, by the belief and plausibility functions of the Dempster‐Shafer theory. A comparison is made with reference to a flow model for the evaluation of the hydraulic head distributions present at a radioactive waste repository site. Three experts are assumed available for the evaluation of the uncertainties associated with the hydrogeological properties of the repository and the groundwater flow mechanisms.     

A location–allocation model for service providers with application to not-for-profit health care organizations

In this paper, we develop and solve a model for the location and allocation of specialized health care services such as traumatic brain injury (TBI) treatment. The model is based on and applied to one of the Department of Veterans Affairs’ integrated service networks. A cost minimization model with service proportion requirements is solved using simulated annealing. Large instances of the model with 100 candidate medical center locations and 15 open treatment units are solved in about 1000 s. In order to test the real-world applicability of our model, an extensive managerial experiment is conducted using data derived from our health care setting. In this experiment, the effects of three critical factors: (1) degree of centralization of services, (2) the role of patient retention as a function of distance to a treatment unit, and (3) the geographic density of the patient population are investigated with respect to the important trade-off between the cost of providing service and the need to provide such service. Our analysis shows that all three factors of the experiment are both relevant and useful to decision-makers when selecting locations for their services.     

THE WELFARE GAINS OF FINANCIAL LIBERALIZATION: CAPITAL ACCUMULATION AND HETEROGENEITY

Research has shown that, absent individual heterogeneity and under complete markets, the welfare impact of financial openness is quantitatively limited. Not only are inequalities in wealth and labor productivity a feature of most societies, but also financial markets suffer from many well‐known frictions. This paper demonstrates that, when households face borrowing constraints and uninsurable idiosyncratic shocks to income, the welfare implications of financial liberalization are considerable. For instance, the average increase in welfare of a typical emerging market economy that switches from a closed capital market to perfect capital mobility is equivalent to a permanent increase in average consumption of roughly 5.4%. This is about 3.9 times more than the welfare gains of the same policy under a complete markets environment without any individual heterogeneity. We show that individual heterogeneity accounts for two thirds of this additional increase in the average welfare gain; market incompleteness accounts for the remaining third. In our calibration, the median household in capital‐scarce countries is in favor of international financial integration. However, if the pivotal voter is wealthy enough then such reform might not be implemented, since richer households have a vested interest in capital market closedness.     

The Effect of a Longer Eligibility to a Labour Market Programme for Dismissed Workers

Liste di Mobilità is an Italian programme targeted to dismissed workers. It combines a ‘passive’ and an ‘active’ component. Eligibility duration varies with the worker's age at dismissal. Using a new panel data set, we identify the impact of extending the duration of eligibility on re‐employment probabilities and wages, via Regression Discontinuity Design. We validate the design by a set of overidentification tests. For most subgroups we find no significant impact, with a peculiar pattern for women entitled to monetary benefits. A major negative impact emerges for workers aged 50 or more granted monetary benefits, likely due to the fact that they can use the programme as a bridge to retirement.     

Public-Private Partnership Contractual Design: A Computational Model of the Moral Hazard with Lotteries

Public-Private Partnership (PPP) is a new model of public management which consists of the contractual relationship between public and private entities. In particular, PPPs enable risk share between public and private sectors making the asymmetric information problem in a contractual arrangement more evident. The aim of this paper was to study a moral hazard problem applied to PPP contracts. To achieve this objective, a PPP computational contractual model including the moral hazard with lotteries was developed to assess how contractual changes could affect the optimum behavior of arrangement members. Simulations indicate that projects with higher economic value should attract more qualified firms, which may be why the companies expend more effort. To deal with possible contractual contingencies and try to minimize the moral hazard problem, the government could draw up more flexible contracts in order to include possible necessary changes and punish unwanted or improper consortium behavior.     

Emigration and Immigration in Italy: Recent Trends

ABSTRACT: During the eighties Italy has evolved into being a receiver of immigration. However, the existence of large Italian communities abroad, and the persistence of exit migratory flows (although amply compensated by re-entry flows) show that the connotation of Italy as a country of emigration still persists. This paper points out the differing composition of present immigration flows to Italy compared to those of Italian migratory flows towards the more industrially advanced European countries over the past decades. The labour forces that constitute these present day immigration flows often possess medium to high educational qualifications, and are more frequently absorbed into the tertiary and agricultural markets, rather than the industrial sector. These immigrants rarely have regular, unionized occupations, and satisfy a demand for precarious, unstable labour which is in expansion in Italy, as in other countries. Furthermore, these immigration flows are directed not only towards those regions with high employment rates, but also to those with high unemployment rates. Thus, the implications are that the character of present day emigration can only be clearly understood by taking into account the highly segmented aspect of the labour market.     

Unemployment and Search for Work: Exploratory Analyses of Labour Market Attachment and its Dynamics

This paper deals with measuring unemployment and labour market attachment in Italy, on the basis of Labour Force Survey data. Based on the answers to a set of questions on search for work, a cluster analysis is performed, which yields four groups, clearly characterized as regards their labour market conditions and attachment. Analyses are then carried out on the gross flows between these groups, estimated over a quarterly interval. Results of the dynamic analysis confirm the relevance of the classification established through exploratory techniques. The various groups exhibit a different dynamic behaviour, thus documenting that the exploratory classification has predictive power.