Evolutionary variational inequalities and applications to complex dynamic multi-level models

In this paper we consider a supply chain network model with three tiers of decision-makers (manufacturers, retailers, and consumers) in the case when prices and shipments are evolving on time. Moreover, we assume that excesses of production and excesses of demand of the commodity are present. For such a framework we furnish, using the infinite dimensional duality theory, the equilibrium conditions for the representatives of each tier of the supernetwork, the time-dependent variational formulation governing the complete supply chain supernetwork, and we provide some existence theorems and a numerical example.     

The spinning jenny and the guillotine: technology diffusion at the time of revolutions

Scale economies and demand, combined with the relative prices of input factors, can provide an economic explanation to the location and timing of the Industrial Revolution. Its labor-saving innovations were profitable only above a minimum output threshold, which allowed to cover the upfront cost of capital. In turn, the possibility to exceed such threshold depended on consumer demand, which was affected by the level and by the distribution of real income. The case of the spinning jenny and the cotton industry in England and France serves as a valuable case study to show how scale and demand considerations might have mattered even at the eve of the Industrial Revolution, thus implying also a potentially important role for income distribution.     

Asymmetric Perception of Sparse Shelves in Retail Displays

We investigated a perceptual bias in recognizing partially stocked shelves in retail displays. Across a series of experiments, a total of 475 right-handed participants were asked to discriminate between pairs of store displays that were more versus less stocked with items. When asked to identify the sparser display in a sterile environment, participants were significantly faster and more accurate in responding to images presented in the left visual field (LVF) than to images presented in the right visual field (RVF). The perceptual asymmetry persisted in a realistic setting, and was prominent under conditions of high task difficulty. The results are consistent with a view of this sparse-shelf bias as emerging from selective hemispheric activation to quantities rapidly assessed during a shopping trip.     

How do managerial successions shape corporate financial policies in family firms?

Despite recent evidence on the importance of chief executive officer (CEO) successions in family firms, we still know little about the differences in corporate strategies entailed by family and professional managers around transition. We investigate the consequences of managerial successions for the financial policies of Italian family firms. Our findings indicate that the appointment of non-family professional CEOs leads to a significant increase in the use of debt, primarily driven by short-term maturities. We document substantial heterogeneity in the impact of professional successions on debt financing: the increase in debt is particularly pronounced for young firms, firms with a high level of investment, and firms in which the controlling family maintains a dominant representation on the board of directors. Examining the importance of financial flexibility, we find that the increase in debt occurs primarily when firms are cash-poor, and when incoming CEOs can exploit spare borrowing capacity.     

Formal and informal learning in the workplace: a research review

The radical economic, social and cultural changes experienced by the labour market within recent decades have helped to highlight the central role played by the learning process in individual career development and organizational success. In such fast‐moving working contexts, skills and competencies rapidly become outdated and need to be continuously implemented and empowered as a strategic factor for global competitiveness. Traditional models of learning both inside and outside of the workplace have become unable to explain the complexity of such a process, weaving between and overlapping formal and informal components. Starting with this premise, the aim of the present paper was to analyse the role of knowledge and experience as important learning frames, which allow the acquisition and development of competencies in the workplace. A human resource development perspective was adopted, aimed at reconciling both the organizational and individual stances implied in the process. The methodology of achieving this was to review the most recent literature on workplace learning, with a special focus on its formal and informal dimensions.     

Ethical Consumption and New Business Models in the Food Industry. Evidence from the Eataly Case

Individual and collective ethical stances regarding ethical consumption and related outcomes are usually seen as both a form of concern about extant market offerings and as opportunities to develop new offerings. In this sense, demand and supply are traditionally portrayed as interacting dialectically on the basis of extant business models. In general, this perspective implicitly assumes the juxtaposition of demand side ethical stances and supply side corporate initiatives. The Eataly story describes, however, a different approach to market transformation; in this case a company and a social movement (Slow Food) have negotiated and collaborated prior to initiating a new business model. This collaboration process and its outcomes are described, focusing specifically on ordinary Eataly customers’ and Slow Food members’ reactions. Given that Eataly can be regarded as a case of mainstreaming, ordinary customers seem satisfied with the new offering and the Slow Food support for the initiative; the more purist members of the Slow Food movement had critical concerns, however, as happened in similar conditions, according to literature, with regard to Fair Trade. The Slow Food endorsement of the new venture has also been observed from the attitude–behaviour gap perspective, as it contributed to addressing the factors affecting the gap between attitudes and actual behaviours. Extensive qualitative data were collected and analysed over a 3-year period. The main study implications refer to the ways in which companies and social movements could interact to co-design new business models, as well as outlining consumers’ attitudes and behaviours towards such new offerings.     

Riding out of a financial crisis: The joint effect of trust and corporate ownership

We study how generalized trust shapes the ability of firms with different ownership forms to obtain trade financing and perform during a financial crisis. Exploiting geographic variations in trust across Italian regions and the occurrence of the 2008-09 financial crisis in a difference-in-differences setting, we show that generalized trust makes family firms less able to obtain trade financing during the crisis. This finding maps into performance results: trust alleviates the negative effect of a crisis for non-family firms, while it aggravates the negative effect for family firms. This latter result depends crucially on a firm's corporate governance: trust does not harm family firms whose board is open to non-family directors. Collectively, our findings illustrate how culture interacts with corporate attributes in shaping a firm's prospects.     

WHY HAVE AGGREGATE SKILLED HOURS BECOME SO CYCLICAL SINCE THE MID‐1980s?*

We document and discuss a dramatic change in the cyclical behavior of aggregate skilled hours since the mid‐1980s. Using CPS data for 1979:1–2003:4, we find that the volatility of skilled hours relative to the volatility of GDP has nearly tripled since 1984. In contrast, the cyclical properties of unskilled hours have remained essentially unchanged. We evaluate whether a simple supply/demand model for skilled and unskilled labor with capital‐skill complementarity in production can help explain this stylized fact. Our model accounts for about 60% of the observed increase in the relative volatility of skilled labor.     

EMU fiscal indicators: a misleading compass?

The effectiveness of any device for fiscal discipline crucially depends on the indicators it refers to. This paper assesses the indicators adopted for fiscal rules in the European Economic and Monetary Union (EMU) with respect to their relevance for EMU’s objective of fiscal soundness and to the adequacy of the underlying statistical framework in providing conditions for enforcement. The paper argues that EMU’s deficit and debt indicators present several shortcomings with respect to both sustainability analysis and monitoring requirements. The debt indicator allows the achievement of targets via operations that do not improve fiscal sustainability and tends to underestimate overall outstanding liabilities. The deficit indicator cannot be monitored in a timely manner, allows too much room for discretion, and is subject to significant revisions. While acknowledging that any single indicator can be distorted when used as a policy target, the paper argues that the weaknesses of EMU’s indicators would be much reduced if consistency cross-checks played a larger role than they currently do.The authors wish to thank Claudia Braz, Carlo Cottarelli, Jorge Cunha, Mark De Broek, Albert␣Jaeger, Mohan Kumar, Joao Nogueira, Ethan Wiseman and the anonymous referees for helpful comments.