Excess corporate payouts and financial distress risk

Firms that follow excessive payout policies (over-payers) are higher on the financial distress spectrum and have lower survival rates than under-payers. In addition, over-payers endure lower future sales and asset growth than under-payers and experience negative abnormal returns in the bond and stock markets. Exogenous import tariff reductions and commodity price jumps reduce the likelihood of overpayment. We interpret this as evidence consistent with financial flexibility considerations, rather than risk-shifting, explaining the decision to overpay. We also find that CEO overconfidence and catering incentives affect overpayment.     

Reconstruction and visualisation of melt topology in veined microdioritic enclaves

A number of xenocrystic microdioritic enclaves within the Ross of Mull Granite contain narrow veins of monzonitic material that have formed through the selective partial fusion of granitic magma mechanically incorporated into the microdiorite magma. Field evidence suggests that, as melting of the granitic material ensued, a monzonitic melt formed and exfiltrated from the surrounding microdioritic matrix resulting in Saffman–Taylor instabilities and the development of viscous fingering phenomena. The monzonitic melt network is now preserved as monzonitic veins. Mechanical serial sectioning through a representative veined microdioritic enclave shows that: (a) the topology of the veins is complex but crudely polyhedral, (b) there is porosity (monzonitic melt fraction) variation throughout the length of the veined enclave and (c) that the monzonitic veins are interconnected in three dimensions. Using image analysis software, the total porosity of individual veined enclave sections has been estimated, along with the variation in porosity with depth. Three dimensional rendering and animation software has been used to reconstruct and visualise the monzonitic melt network using Apple QuickTime? software. The above method provides a cheap and powerful way of visualising remnant macroscopic transport properties (such as connectivity and melt topology) in partially molten igneous rocks.     

State intervention and economic growth in Southern Italy: the rise and fall of the ‘Cassa per il Mezzogiorno’ (1950–1986)

In the second half of the twentieth century, the Italian government carried out a massive regional policy in southern Italy, through the State-owned agency ‘Cassa per il Mezzogiorno’ (1950–1986). The article reconstructs the activities of this agency, making use of its yearly reports and of national and local archives. The Cassa was effective in the first two decades, thanks to substantial technical autonomy and, in the 1960s, to a strong focus on industrial development; however, from the 1970s it progressively became an instrument of waste and misallocation. At the local level, we find significant differences between the southern regions, and correspondence between the quality of state intervention and the regional patterns of GDP and productivity.     

Food for Kids: How Children Influence their Parents Purchasing Decisions

During the last decades, sociological changes have modified the role of children within families: participatory models have become more widespread, to the detriment of more authoritative ones: this change has had consequences also in reference to families’ purchases. In scientific literature some scholars have shown that this influence is real, and marketers try to take advantage of this through a communication style that attempts to “teach” children how to pester their parents: this is the so-called nag factor. To understand which are the parental attitudes toward kids’ food products, a questionnaire has been administered in schools (nursery and primary) to a random sample of parents, representative of a larger sample of kids (200 in all). Findings showed that pestering is a real attitude, in particular among the littlest children. Moreover, these findings reflect in part the reality described by marketing literature: children influence the purchasing decisions of their parents, but this influence decreases when mothers and fathers are more aware of the importance of a quality-based diet.     

Mapping patterns of well-being and quality of life in extended Europe

In this paper, we have applied a powerful clustering procedure (the two-step cluster analysis or BIRCH algorithm) to a set of non-monetary indicators of well-being and quality of life taken from the first four waves of the European Social Survey. By employing this technique, we have identified nine clusters of people characterized by different forms of well-being and quality of life, while preserving as much as possible the multidimensional information contained in the preselected indicators. We then analyzed the distribution of the clusters among the various European countries, finding significant differences among the groups of Nordic countries, Continental European countries, Mediterranean European countries and Eastern European countries in the chances of belonging to the nine forms of well-being and quality of life previously identified. On average, citizens of the Nordic countries, but also those of Switzerland and Luxembourg, have a higher chance of belonging to cumulative clusters of well-being than countries in Continental Europe and Eastern Europe. In very concise terms, the former appear to be somewhat protected from the risk of incurring the more severe forms of material deprivation, distrust of others and of institutions, poor health and relational isolation. In contrast, Eastern Europeans are characterized by particularly pronounced levels of deprivation across multiple dimensions.     

Vilfredo Pareto's influence on the Italian tradition in public finance: A critical assessment of Mauro Fasiani's appraisal

Abstract

Even if Pareto never worked in public finance, he had some influence on the Italian public finance scholars. This paper aims to direct new light onto such a methodological influence. Firstly, it is pointed out that the Paretian idea of science deeply influenced the late scholars of the Italian tradition. Secondly, it is shown that Paretian sociology was less important than his economic methodology. Thirdly, it is argued that, in a generalized Paretian approach, most public policies may be studied under economic hypothesis; it remains true that, in the Paretian approach, public choices may be explained by sociological reasoning only.