National disparities and cyclical dynamics in Italy (1892–2007): was the Mezzogiorno a sheltered economy?

The paper presents the evolution of national disparities in Italy in a cyclical perspective, comparing GDP per capita growth rates in the Centre-North and South from 1892 to 2007. The aim is to evaluate the pro-cyclical pattern of macro-area divergences and to measure, with a non-parametric analysis, the degree of the Southern regions (Mezzogiorno) dependence on the whole country. A performance indicator for national growth is used to determine whether the South can be defined as a sheltered economy. Our results show that peripheral regions as a whole had different degrees of dynamism during the period considered and that the South can be defined as unequivocally sheltered only when national policies switched from industrialization and investments into simple transfers. In other periods, including recent times, national disparities do not show pro-cyclical patterns, supporting the conclusion that the Mezzogiorno has been exposed to market conditions and its economy has not always been dependent on external factors.     

Emotional framing of NGO press releases: Reformative versus radical NGOs

Drawing on the literature on framing, we explore the emotional framing differences in radical and reformative NGOs over time. We analyse the sentiment of a sample of 5880 press releases issued by five NGOs positioned differently on the reformative-radical spectrum and examine how they address large companies. Our findings reveal an increasing polarisation of sentiment in these NGOs' framing, with individual NGOs gravitating towards ideal-type radical or reformative positions, respectively. In alignment with the differences in their framing, we observe differences in their approaches to cross-sector partnerships. Policymakers need to note the implications of the observed polarisation for the effectiveness and credibility of cross-sector partnerships and multi-stakeholder initiatives more generally, given the risk of co-optation (for reformative NGOs) as well as the risk of foregoing significant funding and governance opportunities (for radical NGOs).     

Is there a trade-off between free capital mobility,financial stability and fiscal policy flexibility in the EMU?

The recent dynamics characterizing the Eurozone economy suggest the existence of a new policy trilemma faced by its member countries. According to this policy trilemma, there is a trade-off between free capital mobility, financial stability and fiscal policy flexibility. In this paper, we analyze the foundations of such a trade-off and, based on the data for 11 Eurozone countries, present an empirical investigation on the existence of the trilemma. The results highlight the existence of the trade-off, with some differences between member countries. The existence of this trilemma in the Eurozone provides arguments for implementing centralized financial supervision together with fiscal and monetary reforms that should strengthen the currency union.     

Was the Currency Crisis in Argentina Self-Fulfilling?

The aim of this paper is to investigate whether the 2002 crisis in Argentina was, at least to some extent, self-fulfilling. The theoretical basis we refer to is the so-called “second-generation” models. We use a Markov-switching model that allows us to empirically estimate the role played by fundamentals and/or shifts in devaluation expectations. Our results suggest that shifts in expectations have induced the crisis. However, because deteriorating fundamentals are also significant, we conclude that the collapse of the peg has been partly driven by adverse fundamentals and that abrupt shifts in devaluation expectations have forced a premature exit. JEL no. C22, D84, F31     

The stability of money demand in the long-run: Italy 1861–2011

Money demand stability is a crucial issue for monetary policy efficacy, and it is particularly endangered when substantial changes occur in the monetary system. By implementing the ARDL technique, this study intends to estimate the impact of money demand determinants in Italy over a long period (1861–2011) and to investigate the stability of the estimated relations. We show that instability cannot be excluded when a standard money demand function is estimated, irrespectively of the use of M1 or M2. Then, we argue that the reason for possible instability resides in the omission of relevant variables, as we show that a fully stable demand for narrow money (M1) can be obtained from an augmented money demand function involving real exchange rate and its volatility as additional explanatory variables. These results also allow us to argue that narrower monetary aggregates should be employed in order to obtain a stable estimated relation.     

Compromising as an equal loss principle

Review of Economic Design - A social choice rule aggregates the preferences of a group of individuals over a set of alternatives into a collective choice. The literature admits several social...