Deposit Insurance,Institutions, and Bank Interest Rates

Many recent institutional reforms of the financial system have relied on the introduction of an explicit scheme of deposit insurance. This instrument aims at two main targets, contributing to systemic stability and protecting depositors. However, it may also affect the interest rate spread in the banking system, which can be viewed as an indicator of either inefficiency or market power in this financial segment. This paper provides an empirical investigation of the effect of deposit insurance and other institutional and economic variables on bank interest rates across countries. We find that deposit insurance increases the lending–deposit spread in banking. The main effect seems to arise not from the deposit side though, but from an increase in the lending rate. We interpret this result as evidence of the presence of moral hazard problems related to this instrument. We also find that higher quality of institutions is associated with lower spreads, thus contributing to eroding sources of market power in the banking sector.     

So Far,so Similar? Labour Market Feminization in Italy and Chile

Social Indicators Research - The article aims to analyse gender segregation in the labour market while comparing two national contexts in Europe and Latin America. Specifically, it will consider...     

Ranking Nursing Homes’ Performances Through a Latent Markov Model with Fixed and Random Effects

Social Indicators Research - In this paper, we aim at ranking a set of nursing homes based on their ability in maintaining their residents’ physical conditions as good as possible. In this...     

Predicting Follow‐up Outcomes in Emotionally Focused Couple Therapy: The Role of Change in Trust,Relationship‐Specific Attachment,and Emotional Engagement

Emotionally Focused Couple Therapy (EFT), an evidence‐based couple therapy (Johnson, Hunsley, Greenberg, & Schindler, 1999), strives to foster lasting change through the creation of secure attachment bonds in distressed couples. Although studies have demonstrated lasting change in follow‐up (Wiebe et al., in press), research is needed to investigate predictors of long‐term outcomes. Our goal was to investigate predictors of long‐term outcomes in relationship satisfaction. Relationship satisfaction was assessed across 24 months in a sample of 32 couples who received an average of 21 EFT sessions. Decreases in attachment avoidance were most predictive of higher relationship satisfaction across follow‐up. These findings support the theoretical assumption that EFT helps couples foster lasting change in relationship satisfaction through the facilitation of secure attachment bonds.     

Economic,Financial and Geopolitical Governance: USA,European Union and China

The paper examines the policies, choices, structural reforms, regulatory rules, corporate and public administration matching the world standards, openness, innovation, competitiveness, fulfillment of multilateral obligations, integration and regional approach achievements and international relations conditionality in the “Global Governance and Geopolitics” of the main economic, financial and policy issues, with special focus on the new regional approaches pursued by America, the European Union and Asia and the role of the emerging and transition countries. After the US Dollar, now the Eurozone is under pressure and the main Asian countries fear a contagion effect. While somebody proposes a slow devaluation of the Euro in order to soften the public deficits of the group of most exposed countries and restore more competitiveness to the real economy, political leaders are thinking to adopt indirectly the Euro two speeds operative monetary strategy, through the introduction of the majority vote, instead of the full Members consensus, for the most important decisions at the ECB in Frankfurt. Aside these monetary and institutional measures, the binding of the single national fiscal policy to more strict EU parameters of compatibility with the Eurozone sustainability appear unavoidable. This paper represents the background of my lecture given on November 4 at the Beijing Forum 2011 “The Harmony of Civilizations and Prosperity for All: Tradition and Modernity, Transition and Transformation” () at the PEK University.     

Strategic planning and research and development—Can we integrate them?

The main problem affecting the R & D function has always been caused by its lack of integration with the enterprise. Such a problem makes it difficult to pass from invention to innovation—that is, to turn the invention into processes and products to be exchanged on the market. The author points out the main social and organizational problems which prevent R & D from entering the ‘circulatory system’ of the enterprise. The identification of such problems is important in order to set up and to implement innovative strategies. This is the first of two articles by Professor Petroni on this subject. The second article will appear in April 1983.     

A Mixed Model-assisted Regression Estimator that Uses Variables Employed at the Design Stage

The Generalized regression estimator (GREG) of a finite population mean or total has been shown to be asymptotically optimal when the working linear regression model upon which it is based includes variables related to the sampling design. In this paper a regression estimator assisted by a linear mixed superpopulation model is proposed. It accounts for the extra information coming from the design in the random component of the model and saves degrees of freedom in finite sample estimation. This procedure combines the larger asymptotic efficiency of the optimal estimator and the greater finite sample stability of the GREG. Design based properties of the proposed estimator are discussed and a small simulation study is conducted to explore its finite sample performance.     

Mutual-Fund Benchmarking and Market Bubbles: A Behavioral Approach

Dynamics of equity risk premium is not directly measurable on the market. Numerous studies and empirical research analyse its volatility also considering the time span, concluding that the dynamics of equity risk premium over time is inversely proportional to the economic cycle. This study analyses the passive role that, implicitly, would place institutional investors in such a context. In reality, savings management is delegated to a small number of professional operators (institutional investors), as opposed to pure theoretical models in which every person can act directly on the market thus ensuring unlimited price elasticity. Institutional investors should be rational and completely informed so that they can assume an anticyclical position on the market. Thus, supply and demand should quickly smooth over emerging price pressures and avoid price bubbles. We analyse one possible explanation for this situation not to occur, namely, that professionals suffer from operational limits that prevent them from doing their job in the best possible way. Using empirical evidence from the Italian Stock Exchange (Comit Index), we conclude that three factors reduce the freedom of institutional investors to manage their portfolios – the market target size, the fund structure, and the benchmarking – and discuss some implications for each of them.     

Bargains Rejected? Developing Country Trade Policy on Used Equipment

Many developing countries restrict imports of second-hand goods. These policies appear contrary to the optimal choice of technique in developing countries, where low wages, small markets, and scarce technical skills would appear to call for use of more labor intensive smaller scale, and lower-tech machines. This paper examines data on US exports of new and used metalworking machine tools by type and by country of destination to investigate the determinants of used versus new machinery trade. The results indicate that technological factors, skill constraints, and market size may be more important than factor prices in determining the choice of machine. Trade restrictions on used machinery distort firms' investment decisions.