Effects of redistributing policy support on farmers’ technical efficiency

The objective of this article is twofold: first, investigating the relationship between technical efficiency and decoupled direct payments of a sample of Italian farms prior to the application of the 2014–2020 Common Agricultural Policy reform; second, evaluating possible implications of alternative scenarios about distribution of direct payments on technical efficiency. To these aims, a stochastic frontier analysis is adopted. Results indicate that direct payments produce significant effects on technical efficiency in specialized farms, which received higher levels of support. However, effects are contrasting. Moreover, results show that redistribution of policy subsidies may negatively impact on technical efficiency to an extent depending upon the criterion of redistribution applied. Finally, some policy suggestions are given.     

Fiscal rule compliance,poverty and social exclusion in the Eurozone

This paper develops a simple model of the effects of fiscal adjustments on poverty. Our theory suggests that in richer countries the effects of fiscal adjustment are stronger the more complex is the poverty measure. By examining a panel of 16 EU countries in the period 2005–2015, the paper finds that structural public balance adjustments may harm the welfare of poorer individuals. The empirical estimation hinges on a comprehensive index of poverty and social exclusion, the AROPE index. The results suggest that rigid fiscal rules require specific alternative policies to sustain the welfare of poorer individuals during downturns.     

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.     

The Total Factor Productivity Gap between Internationalised and Domestic Firms: Net Premium or Heterogeneity Effect?

The empirical literature on international trade predicts that internationally involved firms experience a productivity premium when compared to domestic firms. This finding is supported by comparing the unconditional productivity averages or distributions, or regressing the productivity on the international status dummy, controlled for the relevant covariates. In the present paper, we disentangle the distribution of the gross productivity premium from the component that is created by the different structural compositions of the two groups of firms; we can thereby measure the distribution of the net premium that is attributable to internationalisation. To this purpose, we use the quantile decomposition methodology ( Melly, 2005 ). The main results highlight that (i) the net premium is substantially lower than the gross premium and (ii) while the difference in the gross premium is uniform along the entire distribution, the net premium is significant only for the less productive firms. These results are confirmed even if different internationalisation modes are considered (i.e. exports, agreements and commercial penetration) using the domestic firms as baseline. One exception is the net premium for firms enrolled in foreign direct investment and/or offshoring; this premium does not decrease for firms at the top of the productivity distribution.     

Is the ‘Globalization’ of Science Always Good for Scientific Productivity and Economic Growth?

Modern science is characterized by an increasing trend in collaborations and interactions among researchers. This paper aims to analyse the effects of this phenomenon on the productivity of the science sector and on the growth rate of the economy. Basic research is modelled as a contest where only those who arrive first at an innovation obtain the reward and where the interactions among researchers do contribute to production of scientific knowledge. An important result is that when interactions are significant multiple steady states emerge. Hence the ‘science globalization’ process could have enhanced the heterogeneity among scientific sectors of different countries. When there are low interactions, policies that increase connectivity could have low or even perverse effect at improving the efficiency of science, the contrary happens in high connectivity environments.     

Deposit guarantee reform in Europe: does European deposit insurance scheme increase banking stability?

The financial crisis led to reforms of regulation and supervision in Europe, including Deposit Guarantee Schemes. The new rules for DGSs define their position and interaction within the safety net. DGSs form part of a system to maintain and enhance financial stability. According to the Five Presidents’ Report a European Deposit Insurance Scheme should be the third pillar of the Banking Union. The paper gives a contribution to the on-going debate providing an assessment of the DGSs reform and its evolution towards EDIS. It explains key elements of the new rules for DGSs putting them in a systemic perspective.     

An algebraic generalisation of some variants of simple correspondence analysis

For an analysis of the association between two categorical variables that are cross-classified to form a contingency table, graphical procedures have been central to this analysis. In particular, correspondence analysis has grown to be a popular method for obtaining such a summary and there is a great variety of different approaches that one may consider to perform. In this paper, we shall introduce a simple algebraic generalisation of some of the more common approaches to obtaining a graphical summary of association, where these approaches are akin to the correspondence analysis of a two-way contingency table. Specific cases of the generalised procedure include the classical and non-symmetrical correspondence plots and the symmetrical and isometric biplots.     

Creativity and Innovation as Strategic Resources in International Business Markets

This study focuses on Medium-Sized Multinationals （MSMs） that belong to the sectors of mechanics and electronics, and that operate in dynamic international business markets. This work aims to investigate how international marketing strategies are based and maybe in some cases actually heavily dependent on the capacity to form and enhance skills in design, engineering, and production activities, and on the propensity to invest more resources in research and development （R＆D） activities as well as in activities that are more strictly speaking production based （manufacturing）. Undoubtedly, in a global and dynamic business, creative knowledge is one of the key resources that firms must possess in order to take up international strategies successfully. Creativity and innovation are strategic resources for all firms, including those of a medium size and even more for those that belong to the so-called ＂traditional sectors＂. This study also has the objective of examining the influence of the structure and composition of a technological MSMs international alliance portfolio in order to understand which forms of international collaboration are more opportunities for firms that aspire to increasing their know-how and taking up new and more sophisticated forms of exploratory innovation. The present work highlights the results of an empirical research that were carried out during the years 2000-2009. The research involved more than 80 firms of the mechanical and electronics department in the Marche region in Italy.