Central Bank Independence and the Cost of Disinflation: Why the Wage Contracts Length Matters?

Recent empirical contributions demonstrate that countries with less independent central banks enjoy lower output losses during disinflationary cycles. To explain these somewhat surprising empirical findings, some authors suggest that independent central banks probably face a flatter short-run Phillips curve. In this paper, we provide both theoretical and empirical arguments to rationalize this intuition. We demonstrate that, since central bank independence reduces the mean inflation rate and its variance, wage setters opt for a lower degree of nominal wage indexation leading to more wage and price inertia and, thus, to a flatter short-run Phillips curve. Consequently, this paper put forward a channel of positive influence of central bank independence on the sacrifice ratio through its impact on nominal wage indexation. Empirical tests, performed using a sample of 19 OECD countries during the 1960–1990 period, show that these theoretical results hold also empirically.     

Sociometric Status and Peer Control Attempts: A Multiple Status Hierarchies Approach

We study a population of first year midshipmen within an elite military academy to explore the relationship between individuals’ sociometric status (e.g., status conferrals based on positive interpersonal affect and perceived competence, and status degradations based on negative interpersonal affect) and their attempts to directly control their peers’ behaviour over a year's time. Results show that multiple informal sociometric status hierarchies develop early in the organization's life and remain remarkably stable. Control attempts are driven by these status hierarchies: Lower competence status individuals and those who attract negative status degradations are targeted for control by more people early in the group's life, those relatively free of negative status degradations attempt to control greater numbers of others throughout the group's existence, while higher positive status is generally unrelated to control attempts. However, control attempts do not lead to higher future sociometric status, suggesting they are not status signals. Findings also show that individuals targeted for control by many others leave the organization entirely.     

Food safety issues: From Enlightened Elitism towards Deliberative Democracy? An overview of EFSA’s “Public Consultation” instrument

Following the BSE crisis, the importance of reassuring European consumers and involving them in debate about food safety management issues is generally recognised. Indeed, consulting stakeholders is one of the European Food Safety Authority’s (EFSA) main duties, as stated in its founding regulation (art. 42, whereas 56), where EFSA must have “effective contacts with consumer representatives, producer representatives, processors and any other interested parties”. Even if not clearly obliged to, EFSA has also opted to consider lay citizens’ opinion (under an interpretation of art. 42, wh. 40 of the 178 Reg.) in order to enhance “trust” in food safety. Beyond having formally established meetings with restricted access for participants – like the Stakeholders’ Consultative Platform and the Annual Colloquium, – EFSA engages in its “Public Consultation” web-based Window (PCW). It allows listening to anybody who wishes to submit comments on technical issues.     

Paving the road toward eco-effectiveness: Exploring the link between greenhouse gas emissions and firm performance

Climate change has increasingly attracted business attention over the last decade, focusing particularly on the eco-efficiency debate. The goal of this paper is twofold. First, we contribute to the ongoing debate on the effects of environmental strategies on firm performance. We investigate this relationship by considering the relative greenhouse gas emissions (GHG) as a predictor of the eco-efficiency of firms' environmental strategies. GHG emissions are a direct indicator of the environmental performance and effectively measure the firm's efforts in mitigating the impacts related to its processes and products. Second, we investigate the drivers that lead to an increase in the firm's environmental impact under the conditions of increasing market performance by the firm, therefore paving the road to the concept of eco-effectiveness of corporate environmental strategies. To test our hypotheses, we use a sample of worldwide listed companies derived from the S&P 1200 list. A longitudinal analysis is run through generalized least squares regression models over the period 2004–2016. Results offer evidence of the direct relationship between the level of absolute emissions and market performance of the firm. Therefore, the findings have significant implications on the way we conceptualize corporate environmental sustainability and environmental strategies, shedding new light on the relation between environmental pressures and corporate growth.     

Equal treatment and socially optimal R&D in duopoly with one‐way spillovers

This paper examines the standard symmetric two‐period R&D model with a deterministic one‐way spillover structure: know‐how flows only from the high R&D firm to the low R&D firm (but not vice versa). Though firms are ex ante identical, one obtains a unique asymmetric equilibrium (pair) in R&D investments, leading to interfirm heterogeneity in the industry. R&D cooperation by means of a joint lab is considered and compared to the non cooperative solution. The main part of the paper provides a second‐best welfare analysis in which we show that the joint lab yields a socially optimal R&D level subject to an equal treatment (of firms) constraint, which also coincides with the noncooperative solution in the absence of spillovers. We also investigate the welfare costs of this equal treatment constraint and find that they can be quite significant.     

EFFICIENT MECHANISMS FOR MERGERS AND ACQUISITIONS*

We characterize incentive‐efficient merger outcomes when payments can be made both in cash and stock. Each firm has private information about both its stand‐alone value and a component of the (possibly negative) potential synergies. We study two cases: when transfers can, and cannot, be made contingent on the value of any new firm. When they can, we show that redistributing shares of any nonmerging firm generates information rents and provides necessary and sufficient conditions for the implementability of efficient merger rules. When they cannot, private information undermines efficiency more when it concerns stand‐alone values than synergies. Here, acquisitions emerge as optimal mechanisms.     

Cognitive job crafting: A possible response to increasing job insecurity and declining professional prestige

Recent research has shown that job crafting, which describes individuals' attempts to craft a job to make it correspond more to personal inclinations, skills, and abilities, can generate significant work and nonwork benefits for individuals. Using the theoretical lens of activation theory, we examined whether professionals are prompted to cognitively craft their jobs in response to the increasing perception of precarisation of their profession, measured in terms of job insecurity and perceived external prestige. We adopted a mixed methods approach among professional accountants operating in Southern Italy and the results indicated the presence of two curvilinear relationships. More specifically, we found that accountants were more likely to engage in cognitive crafting when experiencing moderate levels of job insecurity (rather than high or low) and in the presence of both low and high levels of perceived external prestige (rather than a moderate level). Implications for theory and practice are discussed.     

Small-Medium Car Suppliers and Behavioural Models in Innovation

This article reports the results of an empirical study on the innovation capabilities of a sample of 25 Italian small-medium car suppliers. The aim of the paper is to highlight the capabilities, the behavioural models and the factors determining innovation: technology transfer, the role of sub-suppliers, the relationships with external research institutes and the obstacles to innovation. Inter-firm differences in the innovation process will be examined using multinomial logit analysis. The homogeneity of the sample allows the testing of some operating strategies that may contribute to more rapid technological change in mature industries such as: diversity, consolidation and co-operation.     

Mispricing and risk of R&D investment in European firms

We study whether R&D-intensive firms earn superior stock returns compared to matched size and book-to-market portfolios across several financial markets in Europe. Mispricing can arise if investors are not able to correctly estimate the long-term benefits of R&D investment or whether R&D firms are more risky than others. The results confirm that more innovative firms can earn future excess returns. Stocks listed on continental Europe markets and operating in high-tech sectors are more prone to undervaluation. This can be caused in the first case by information asymmetries that are more severe in bank-based countries. No evidence is found for a different risk pattern of R&D-intensive stocks.