Policy uncertainty and aggregate fluctuations

This paper estimates the impact on the US economy of four types of uncertainty about (i) government spending, (ii) tax changes, (iii) public debt, and (iv) monetary policy. Uncertainty about government debt has a large and persistent effect on output, consumption, investment, consumer confidence, and business confidence. Uncertainty about tax changes also has detrimental consequences for real activity but the effect of spending and monetary policy uncertainty appears to be small. About 25% of output fluctuations are accounted for by policy uncertainty, with government debt making the largest contribution at longer horizons.     

Gender Differences in Sorting

In this paper, we investigate gender differences in workers’ career development within and outside the firm to explain the existence of gender wage gaps. Using Danish employer–employee matched data, we find that good female workers are more likely to move to better firms than men but are less likely to be promoted. Furthermore, these differences in career advancement widen after the first child is born. Our findings suggest that career impediments in certain firms cause the most productive female workers to seek better jobs in firms in which there is less gender bias.     

The role of leadership in salespeople’s price negotiation behavior

Salespeople assume a key role in defending firms’ price levels in price negotiations with customers. The degree to which salespeople defend prices should critically depend upon their leaders’ influence. However, the influence of leadership on salespeople’s price defense behavior is barely understood, conceptually or empirically. Therefore, building on social learning theory, the authors propose that salespeople might adopt their leaders’ price defense behavior given a transformational leadership style. Furthermore, drawing on the contingency leadership perspective, the authors argue that this adoption fundamentally depends on three variables deduced from the motivation–ability–opportunity (MAO) framework, that is, salespeople’s learning motivation, negotiation efficacy, and perceived customer lenience. Results of a multi-level model using data from 92 salespeople and 264 salesperson–customer interactions confirm these predictions. The first to explore contingencies of salespeople’s adoption of their transformational leaders’ price negotiation behaviors, this study extends marketing theory and provides actionable guidance to practitioners.     

Obstacles and solutions on the ladder of citizen participation: a systematic review

This article presents a systematic review of the English-language empirical literature about citizen participation to identify the obstacles to its implementation and the most successful ways to address them. Three sets of variables seem to impact effectiveness: contextual factors, including information asymmetries and public officials’ attitude; organizational arrangements, including community representation criteria and process design; and process management patterns, including group dynamics and collaboration quality. Two recommendations stem from our analysis: internalize decisions in organizational procedures, and establish ongoing interactions between government bodies and their stakeholders. We conclude that half-hearted engagement is unlikely to lead to successful citizen participation.     

The role of human capital in identifying the drivers of product and process innovation: empirical investigation from Italy

Quality & Quantity - Economists recognize that the local availability of higher human capital represents significant knowledge spillovers, especially for innovation process. This research...     

Structural comparisons of networks and model-based detection of small-worldness

In this paper, we consider the problem of assessing the “level of small-worldness” of a graph and of detecting small-worldness features in real networks. After discussing the limitations of classical approaches, based on the computation of network indicators, we propose a new procedure, which involves the comparison of network structures at different “observation scales”. This allows small-world features to be caught, even if “hidden” deeply into the network structure. Applications of the procedure to both simulated and real data show the effectiveness of the proposal, also in distinguishing between different small-world models and in detecting emerging small-worldness in dynamical networks.     

How the sender’s positioning and the target’s CSR record influence the effectiveness of scapegoating crisis communications

Past research on scapegoating argues that this crisis communication strategy is often ineffective because it can be perceived as an unfair attempt at shifting blame. In contrast, a few studies have shown that scapegoating can be effective by increasing the perceived ethicality of the sender relative to the target that is presented as responsible for wrongdoing. Reconciling these inconsistent findings, we show that the relative effectiveness of scapegoating depends on the perceptions of the sender and of the target. Our findings show that both the positioning of the sender as an underdog or a top dog and the positive or negative CSR record of the target contribute to explaining the effectiveness of scapegoating. Following a crisis, scapegoating appears to be most effective when the sender is an underdog and the target has a negative CSR record. The effectiveness of scapegoating for an underdog is however reduced when the target has a positive CSR record. At the opposite end, scapegoating might backfire when the sender is a top dog that attacks a target with a positive CSR record. Finally, when a top dog attacks a target with a negative CSR record, scapegoating reduces negative word of mouth even though this effect does not appear to be mediated by perceived ethicality. The study contributes to research on scapegoating communications and on the consequences of an underdog positioning and a positive CSR record for companies trying to manage the negative fallout from an ethical crisis.

     

A tale of two Italies: ‘access-orders’ and the Italian regional divide

ABSTRACT

This paper uses the ‘access orders’ paradigm developed by North, Wallis, and Weingast [(2009). Violence and social order: A conceptual framework for interpreting recorded human history. Cambridge: Cambridge University Press] to analyse the case of the Italian North–South economic divide. In line with their framework, we collect and discuss several social and political indicators over the long-run, at the regional level. Firstly we looked at data on the pre-conditions for the establishment of an open-access order, such as murders per capita (a proxy for control over violence), voting turnout and referendums participation (proxies for political legitimacy), and the impersonality of exchange. We then showed evidence of different access orders in the North and in the South, using the information on human capital formation, women participation in the labour market, and referendum results. On the basis of this evidence, we argue that, despite being part of the same State and subject to the same formal institutions, the North of the country progressively developed into an open-access order, while the South remained a form of limited access order.

Institutional differences are linked to specific aspects of the economic performance of the two areas, thus the ‘access order’ paradigm appears to be an effective conceptual scheme to explain the North–South economic divide.     

Shortfall aversion

Shortfall aversion reflects the higher utility loss of spending cuts from a reference than the utility gain from similar spending increases. Inspired by Prospect Theory's loss aversion and the peak‐end rule, this paper posits a model of utility from spending scaled by past peak spending. In contrast to traditional models, which call for spending rates proportional to wealth, the optimal policy in this model implies a constant spending rate equal to the historical peak when wealth is relatively large. The spending rate increases when wealth reaches a model‐determined multiple of peak spending. In 1926–2015, shortfall‐averse spending is smooth and typically increasing.     

EXTERNALITIES AGGREGATION IN NETWORK GAMES

We generalize the results on the monotonicity of equilibria for network games with incomplete information. We show that not only the distinction between strategic complements and strategic substitutes is important in determining the nature of the Bayesian Nash equilibria, but the nature of the statistic itself is also determinant. We show that understanding the underlying forces behind people's choices may be of fundamental importance for a policymaker that wants to incentivize efficient behavior.