Some new characterization of rational expectation equilibria in economies with asymmetric information

We compare the family of rational expectation equilibria with the ex-post Aubin core allocations in the framework of an economy with uncertainty and asymmetric information. We do it in a very general setting: an arbitrary space of agents and an infinite dimensional commodity space. We also present a characterization of the ex–post Aubin core by allocations belonging to the core of the associated complete information economies, and we use a suitable definition of Edgeworth equilibria to characterize the family of rational expectation equilibria. Moreover, we study some generalizations of the ex-post Aubin core obtained by making some restriction on the families of blocking coalitions.     

New evidence on the efficiency of Italian airports: A bootstrapped DEA analysis

A bootstrapped DEA procedure is used to estimate technical efficiency of 18 Italian airports during the period 2000-2004. Departing from previous studies, we separate the efficiency related to ability to manage airside activities (operational) from that related to the management of all business activities (financial). In general, Italian airports operate at poor levels of efficiency, with slightly better performance in terms of their financial activities. In the current study, selected intrinsic and environmental characteristics are considered as possible drivers of Italian airport performance. In particular, we found that: (i) the airport dimension does not allows for operational efficiency advantages, (ii) on the other hand, the airport dimension allows for financial efficiency advantages for the case of hubs and disadvantages for the case of the smallest airports (iii) the type(s) of concession agreement(s) might be considered as important source of technical efficiency differentials for those airports running marginal commercial activities; (iv) the introduction of a dual-till price cap regulation might create incentives which lead to the increase of financial efficiency at the detriment of the operational performance. Lastly, the development of a second hub (Milano Malpensa), has negatively affected the performance of the country’s national hub (Roma Fiumicino).     

A statistical equilibrium model of competitive firms

We find that the empirical density of firm profit rates, measured as returns on assets, is markedly non-Gaussian and reasonably well described by an exponential power (or Subbotin) distribution. We start from a statistical equilibrium model that leads to a stationary Subbotin density in the presence of complex interactions among competitive heterogeneous firms. To investigate the dynamics of firm profitability, we construct a diffusion process that has the Subbotin distribution as its stationary probability density. This leads to a phenomenologically inspired interpretation of variations in the shape parameter of the Subbotin distribution, which essentially measures the competitive pressure in and across industries. Our findings have profound implications both for the previous literature on the ‘persistence of profits’ as well as for understanding competition as a dynamic process. Our main formal finding is that firms' idiosyncratic efforts and the tendency for competition to equalize profit rates are two sides of the same coin, and that a ratio of these two effects ultimately determines the dispersion of the equilibrium distribution.     

Fostering the Industrial Component of the European Green Deal: Key Principles and Policy Options

Intereconomics - The necessity to meet climate and environmental targets, while at the same time ensuring economic and social sustainability,requires a transformation that will generate enough...     

Does Aid Cause Trade? Evidence from an Asymmetric Gravity Model

Anderson and vanWincoop developed what has become the standard framework for framing and interpreting empirical work using the gravity model. Their framework relies heavily on an assumption of symmetry among countries. For issues related to North‐South trade, this assumption is problematic. In this paper, we develop an asymmetric extension of the Anderson–vanWincoop framework appropriate to the analysis of North‐South trade, where Northern countries produce differentiated goods and Southern countries homogenous ones. In addition, we use an appropriately extended version of Baier and Bergtrand and Taylor linear expansion – thus permitting its estimation using (good old) OLS. The result is an empirical model that (i) is better suited to the analysis of North‐South trade, (ii) is easy to estimate and compute comparative statics, not requiring a customised NLS routine and, given the way the South is included, (iii) provides a simple explanation of zero trade flows between some country pairs, a fact still not fully explained in the literature. As an illustration of its use, we examine the empirical link between foreign aid and trade.     

Metaphors and the Application of a Corporate Code of Ethics

This article researches how a corporate code of ethics (CCE) implemented in local government X has influenced the behavior of its employees, middle managers, and managers. Metaphors from the existing and desired CCE elicited by these three groups provided information on how to improve the effectiveness of the CCE. This method proved to be very fruitful. It appeared that continuous systematic attention needed to be paid to the CCE after the CCE had been implemented, particularly by management. Initiatives from management to start discussions about relevant questions of integrity appeared to be also necessary to make the topic a “normal” topic which employees were no longer afraid to discuss. In this way, the possibility could be created to develop collectively a “practical” frame of reference concerning relevant questions of integrity that would help employees to make decisions in difficult situations during their work in the future.