Dealing with the prescription drug dilemma

When the West Virginia Public Employees Insurance Agency saw 20% increases in drug spend, they formed a coalition with several other states and negotiated a contract with a new PBM that may save $25 million over three years. Other initiatives include a generic copayment waiver and a counter-detailing program.     

Executive Compensation in American Unions

We explore compensation of labor union leaders using U.S. panel data on more than 75,000 organization‐years from 2000 to 2007. We find that membership, estimated average wages, and dues are strongly related to the compensation of the leaders of American labor unions, even after controlling for organization size and organization fixed effects. That is, within the same union over time, higher levels of these measures are associated with higher levels of pay for union leaders.     

CSR Practices and Corporate Strategy: Evidence from a Longitudinal Case Study

This paper aims to contribute to the present debate about business ethics and Corporate Social Responsibility (CSR) that the Journal of Business Ethics is hosting. Numerous contributions argued theoretical frameworks and taxonomies of CSR practices. The authors want to ground in this knowledge and provide further evidence about how companies adopt CSR practices to address stakeholders’ claims and consolidate their trust. Evidence was provided by a longitudinal case study about an Italian food company that is one of the largest producers of baby food. This company reshaped its corporate strategy along three decades through the adoption of CSR practices in order to win stakeholders’ trust about food safety and supply chain behaviour. The empirical exercise was informed by a literature review of the relevant contributions in terms of CSR business practices and levels of efforts to adopt them. In light of this review, the authors adopted for the research framework the taxonomy of business practices proposed by Spiller (2000, “Ethical Business and Investment: A Model for Business and Society”, Journal of Business Ethics 27, 149-160) and the levels of commitment towards CSR proposed by Stahl and Grigsby (1997, Strategic Management; Total Quality & Global Competition (Blackwell, Oxford)). The main findings are discussed in order to argue theoretical implications and identify further areas of research and debate.     

Order book modeling and financial stability

Journal of Economic Interaction and Coordination - This paper presents an agent-based model of the financial order book, and investigates whether the volatility of market prices can be reduced by...     

Ownership ties,conflict of interest,and the tone of news

This paper investigates the tone newspapers use in reporting information on a company that it is linked with through an ownership tie. Our empirical setting is Italy, a country characterized by dominant national industrial groups’ high ownership of newspapers. Based on a sample of about 123,000 articles, we document that newspapers’ coverage of firms in conflict of interest is greater, with significantly fewer negative and uncertain words. We also document that the slant increases with ownership stakes and decreases with the newspaper's reputation.     

Uncertainty across volatility regimes

We propose a nonrecursive identification scheme for uncertainty shocks that exploits breaks in the volatility of macroeconomic variables and is novel in the literature on uncertainty. This approach allows us to simultaneously address two major questions in the empirical literature: Is uncertainty a cause or effect of decline in economic activity? Does the relationship between uncertainty and economic activity change across macroeconomic regimes? Results based on a small‐scale vector autoregression with US monthly data suggest that (i) uncertainty is an exogenous source of decline of economic activity, and (ii) the effects of uncertainty shocks amplify in periods of economic and financial turmoil.     

Endogenous debt maturity and rollover risk

We empirically study the nature of rollover risk and show how banks manage it. Having to roll over debt does not lead to higher default risk per se. Only banks that lose significant access to new funding while having to roll over debt display higher default risk. We identify a factor that determines this buildup of risk: specifically, debt maturity shortening (forcing debt to be more frequently rolled over) and reduced access to new funding are both driven by market pessimism about banks’ future performance. We also provide evidence consistent with dynamic coordination risk.     

Climate change management: a resilience strategy for flood risk using Blockchain tools

Decisions in Economics and Finance - This work aims to offer a contribution in the analysis and management, from an economic and financial point of view, of the flood risk, and extended to the...