Organisational form and quality,service, and cleanliness inspection scores in restaurant franchise chains: Evidence from Spain

This study investigates how the organisational form (company ownership vs. franchising) of individual restaurants of a large Spanish restaurant company influences their inspection scores in terms of quality, service, and cleanliness (QSC). The research uses a panel data set that includes bimonthly restaurant-level data on QSC inspection scores. The aggregate data initially reveal substantial differences between company-owned and franchised restaurants. Nevertheless, after controlling for other variables, we observe that such differences are in fact minor, or even nonexistent. In addition, when we endogenise the selection of the restaurants' organisational form, the differences become statistically insignificant.     

Economy-wide Estimates of the Implications of Climate Change: Sea Level Rise

The economy-wide implications of sea level rise in 2050 are estimated using a static computable general equilibrium model. This allows for a better estimate of the welfare effects of sea level rise than the common direct cost estimates; and for an estimate of the impact of sea level rise on greenhouse gas emissions. Overall, general equilibrium effects increase the welfare costs of sea level rise, but not necessarily in every sector or region. In the absence of coastal protection, economies that rely most on agriculture are hit hardest. Although energy is substituted for land, overall energy consumption falls with the shrinking economy, hurting energy exporters. With full coastal protection, GDP increases, particularly in regions with substantial dike building, but utility falls, least in regions that protect their coasts and export energy. Energy prices rise and energy consumption falls. The costs of full protection exceed the costs of losing land. The results also show direct costs – the usual method for estimating welfare changes due to sea level rise – are a bad approximation of the general equilibrium welfare effects; previous estimates of the economic impact of sea level rise are therefore biased.      

Skill Upgrading and the Real Exchange Rate

This paper examines the effect of changes in the real exchange rate on skill upgrading in the case of Chile. Using plant‐level data from the manufacturing sector, we find that a real depreciation increases the share of skilled workers in the total wage bill in exporters but not in non‐exporters. This result suggests that depreciations or, more generally, increases in export profitability, may induce exporters to adopt more skill‐intensive technologies. This finding gives support to recent models of trade that highlight the possible effect of the real exchange rate on skill upgrading and wage inequality. This paper also finds that real depreciations increase plants’ export intensity, suggesting that skill upgrading for firms that are already exporters is the channel through which real exchange depreciations affect wage inequality.     

LABORATORY EXPERIMENTS FOR ECONOMIC POLICY MAKING

Abstract In this paper, we assess the scope and the specific contribution of laboratory experiments for economic policy making. We review experiments which have addressed a specific problem, institution, mechanism design or tool relevant in economic policy. We have two research questions. What type of policy questions can be addressed in the laboratory? And what is the specific value added of economic experiments for policy making. The survey contains experiments on competition policy, auctions, regulated markets, and emission permits.     

The Evolution of Income Composition Inequality in Italy, 1989–2016

We study the evolution of inequality in income composition in terms of capital and labor income in Italy between 1989 and 2016. We document a rise in the share of capital income accruing to the bottom of the distribution, while the top of the distribution increases its share of labor income. This implies a falling degree of income composition inequality in the period considered and a weaker relationship between the functional and personal distribution of income in Italy. This result is robust to various specifications of self-employment income; nonetheless, it hinges crucially on the treatment of rental incomes. While the dynamics of imputed rents has brought about a more equitable distribution of capital incomes across the income distribution, that of actual rents has led to higher concentration of capital incomes at the top in the decade preceding the outbreak of the financial crisis. Finally, we conceptualize a rule of thumb for policy makers seeking to reduce income inequality in the long run.     

ORGANIZATIONAL CHANGE,SKILL FORMATION,HUMAN CAPITAL MEASUREMENT: EVIDENCE FROM ITALIAN MANUFACTURING FIRMS

Abstract This paper emphasizes the role of labour demand as a determinant of human capital formation. After a section in which the alternative conceptions on the functioning of labour markets are presented and different ways of measuring human capital are compared, an applied analysis is carried out in which we provide a labour‐demand‐oriented measure of human capital, as defined by the amount of specific skills firms generate through work‐based training (WBT) activities. By merging three rich firm‐level datasets, we estimate the impact of a set of variables supposed to affect both the propensity to invest in WBT and the intensity of training within the Italian manufacturing industry over the period 2001–2005. Special attention is devoted to the variables characterizing within‐firm organization of knowledge, organizational change and the formation of competence pipelines: among them, innovation, internationalization commitment, out‐sourcing and new hirings. The estimates show that the effect of innovation on WBT is higher when the introduction of new technologies is supported by organizational innovations. When looking at the nature of WBT, we investigate the different determinants of the firms' propensity to provide both in‐house and outside training. We measure training intensity in terms, respectively, of the number of provided training activities, private and total training costs and share of trainees.     

Multiplicity of mixed equilibria in mechanisms: A unified approach to exact and approximate implementation

We characterize full implementation of social choice sets in mixed-strategy Bayesian equilibrium. Our results concern both exact and virtual mixed implementation. For exact implementation, we identify a strengthening of Bayesian monotonicity, which we refer to as mixed Bayesian monotonicity. It is shown that, in economic environments with at least three agents, mixed Bayesian implementation is equivalent to mixed Bayesian monotonicity, incentive compatibility and closure. For implementing a social choice function, the case of two-agents is also covered by these conditions and mixed Bayesian monotonicity reduces to Bayesian monotonicity. Following parallel steps, mixed virtual implementation is shown to be equivalent to mixed virtual monotonicity, incentive compatibility and closure. The key condition, mixed virtual monotonicity, is argued to be very weak. In particular, it is weaker than Abreu–Matsushima’s measurability, thereby implying that: (1) virtual implementation in mixed Bayesian equilibrium is more permissive than virtual implementation in iteratively undominated strategies, and (2) non-regular mechanisms are essential for the implementation of rules in that gap.     

A DIRECTIONAL DISTANCE APPROACH APPLIED TO HIGHER EDUCATION: AN ANALYSIS OF TEACHING‐RELATED OUTPUT EFFICIENCY

This paper applies a data envelopment analysis (DEA) method to assess technical efficiency of both private and public universities in Italy. A directional distance function approach has been applied in order to handle both desirable (i.e. number of graduates) and undesirable (i.e. number of dropouts) outputs. The findings based on a panel from academic year 2003/2004 to 2007/2008 reveal the presence of interesting geographical (both by macro areas and regions) and ownership (private, public) effects. Several quality and quantity proxies have also been used in order to check whether the estimates depend on the output specification. Finally, the possible evidence of variation in the universities’ performances by subject of study has been taken into account in order to check whether the results are still consistent comparing universities within subject rather than across subjects.     

Environmental and Social Accounting for Brazil

An environmentally extendedSocial Accounting Matrix (SAM) has beenconstructed for Brazil for the first time. Wereview in detail previous studies in thisfield, describe the construction, structure anddata sources of the Brazilian SAM, anddemonstrate the effect of system closure.Examining a range of type-I and type-IImultipliers, we show that incomes generated byfinal consumption are highly skewed towardsrich households, but energy requirements andcarbon emissions are higher for the consumptionof the poor. A significant negative correlationexists between employment and income on onehand, and energy requirements and carbonemissions on the other, while a significantpositive correlation exists between imports,and energy and carbon. These correlationsdemonstrate that there is scope for policiesthat pursue imports substitution and reduceenergy consumption and carbon emissions whilstincreasing employment and income.