The effect of demand-driven structural transformations on growth and technological change

The paper analyses the effect of the dynamics of consumption preferences on the dynamics of macro–economic growth. We endogenously derive micro–dynamics of consumption behavior as a result of the increase in the number of income classes. The different degrees of inertia in the adjustment of consumption levels to income changes affect firm selection and the dynamics of market structure, which is ultimately responsible for different regimes of macro–economic growth. We find, first, that higher heterogeneity in consumption preferences amplifies and accelerates market dynamics, leading to a swift shift from a Malthusian to a Kaldorian growth pattern. Second, consumption smoothing mainly affects the timing of such a take–off. Inertia in consumption delays the occurrence of a Kaldorian engine for growth.     

A cross-country panel approach to exploring the determinants of educational equity through PISA data

The main aim of the paper is to analyse the effect of country and school factors on a new measure of educational equity defined as the country proportion of resilient students, i.e. those who, despite their disadvantaged socioeconomic background, are able to obtain good educational results. We construct a cross country panel dataset by merging the five editions of OECD PISA (Programme for International Student Assessment). The panel analysis allows to exploit country and time level variation in the proportion of resilient students controlling for systematic and institutional differences. Our findings suggest that educational funding can help disadvantaged students to obtain the opportunities that they are otherwise lacking. In addition, this effect seems to be heterogeneous, and particularly driven by those countries whose economic development (in terms of per capita GDP) is lower.     

Growth accounting for the euro area

This article is concerned with the estimation of euro area potential output growth and its decomposition according to the sources of growth. The growth accounting exercise is based on a multivariate structural time series model which combines the decomposition of total output according to the production function approach with price and wage equations that embody Phillips-type relationships linking inflation and nominal wage dynamics to the output gap and cyclical unemployment, respectively. Assuming a Cobb?CDouglas technology with constant returns to scale, potential output results from the combination of the trend levels of total factor productivity (TFP) and factor inputs, capital and labour (hours worked), which is decomposed into labour intensity (average hours worked), the employment rate, the participation rate and population of working age. The nominal variables (prices and wages) play an essential role in defining the trend levels of the components of potential output, as the latter should pose no inflationary pressures on prices and wages. The structural model is further extended to allow for the estimation of potential output growth and the decomposition according to the sources of growth at different horizons (long run, medium run and short run); in particular, we propose and evaluate a model-based approach to the extraction of the low-pass component of potential output growth at different cut-off frequencies. The approach has two important advantages: the signal extraction filters have an automatic adaptation property at the boundaries of the sample period, so that the real-time estimates do not suffer from what is often referred to as the ??end-of-sample bias??. Secondly, it is possible to assess the uncertainty of potential output growth estimates with different degrees of smoothness.     

The transient and persistent efficiency of Italian and German universities: a stochastic frontier analysis

Despite measures on the European level to increase the compatibility between the higher education sectors, the recent literature exposes variations in their efficiencies. To gain insights into these differences, we split the efficiency term according to the two management levels each university is confronted with. We separate short-term and long-term efficiency while controlling for unobserved institution-specific heterogeneity. We argue that the first term reflects the efficiency of the individual universities working within the country, while the second term echoes the influence of the overall country-specific higher education structure. The cross-country comparison displays whether efficiency differences between countries are related to the individual performance of their universities or their higher education structure. This allows more purposeful policy recommendations and expands the literature regarding the efficiency of universities in a fundamental way. Choosing Italy and Germany as two important illustrative examples, we show that the Italian higher education sector exhibits a higher overall efficiency value. With the individual universities working at the upper bound of efficiency in both countries, the remaining inefficiency and the gap between the countries are caused by persistent, structural inefficiency. Future measures should hence aim at the country-specific structure and not solely at the activities of single universities.     

The European Framework for Regulating Telecommunications: A 25-year Appraisal

Review of Industrial Organization - The European telecommunications sector has been radically transformed in the past 25 years: from a group of state monopolies to a set of increasingly...     

Mergers with Differentiated Products: Where Do We Stand?

Review of Industrial Organization - On the occasion of the 10th anniversary of the 2010 U.S. Horizontal Merger Guidelines, this article provides an overview of the state of economic analysis of...     

Contractual networks: an organizational model to reduce the competitive disadvantage of small and medium enterprises (SMEs) in Europe’s less developed regions. A survey in southern Italy

International Entrepreneurship and Management Journal - Limitations faced by southern Italy’s small enterprises due to their dimensions may be overcome by cooperation strategies and network...     

Measuring the efficiency of European education systems by combining Data Envelopment Analysis and Multiple-Criteria Evaluation

Education is considered an important factor of economic growth, employment and social inclusion. However, the economic crisis has put the need to achieve educational goals in the most efficient way ever more to the fore. The main objective of this paper is to assess the spending efficiency of European compulsory educational systems, creating a ranking of countries based on the efficiency scores of their systems using a number of standard variables from the literature. To this end, we also present a methodological innovation that combines Data Envelopment Analysis (DEA) with discrete Multiple Criteria Evaluation (MCE), two methods that we consider complementary if used for providing a performance analysis. Moreover, both methods identify a set of common variables which are associated with higher levels of efficiency in educational systems (e.g. some characteristics of teachers, the stock of adults’ human capital and lower expenditures per student). The results show that findings using DEA are largely confirmed by MCE.

     

Switching Costs in Vertically Related Markets

In the presence of switching costs, firms are ofteninterested in expanding current market shares toexploit their customer base in the future. However, ifthe product is sold by retailers, manufacturers mayface the problem of extracting too much surplus fromthe retailer. If this happens, then the latter has notan incentive to build a subscriber base. This paperwould like to connect two streams in the literature,on switching costs and vertical restraintsrespectively. An upstream–downstream duopoly model ispresented to analyse the mutual incentive for firms toenter into particular trading relationships. Whenswitching costs are high, then integrated structuresare predicted. On the other hand, when lock in effectsare not too relevant, mixed structures withindependent and integrated firms emerge as anequilibrium in growing industries. The results arediscussed with reference to the UK mobiletelecommunications industry.