Testing similarities of short-run inflation dynamics among EU-25 countries after the Euro

In this paper, we introduce two new definitions of pair-wise and multi-wise similarity between short-run dynamics of inflation rates in terms of equality of forecast functions and show that in the context of invertible ARIMA processes the autoregressive metric introduced by Piccolo (1990) is a useful measure to evaluate such similarity. Then, we study the similarity of short-run inflation dynamics across European Union (EU)-25 Member States during the Euro period. Consistent with studies on inflation differentials and inflation persistence, our findings suggest that after seven years from the launch of the Euro the degree of similarity of short-run inflation dynamics across Euro area countries is still weak. By contrast, we find that EU countries not adopting the common currency, whether old EU or new accession Members, display a higher degree of inflation dynamics similarity both among each other and with Euro area countries.     

Contrasting Quantitative and Qualitative Approaches to Rural Development Analysis: The Case of Agricultural Intensification in Lebanon

While peripheral rural regions in Lebanon face typical problems of lagging development and economic marginalisation, they have not been regarded as a priority for policy‐makers. Local extensionists have encouraged technological innovation as a means of improving farmers’ livelihoods, and this has led to increasing input use and an intensification of agricultural production. This paper applies contrasting quantitative and qualitative methodologies to analyse the effects of such changes at the level of the overall economy of Lebanon and also to explore the impacts on rural households. A computable general equilibrium (CGE) model simulates shocks in which agricultural output increases due to different types of intensification. The results are contrasted at local level through the use of qualitative case study analysis carried out in the Hermel district of northeast Lebanon. Quantitative simulations indicate that, while agricultural intensification has a positive effect overall on the Lebanese economy, the effects on rural households and the income of farmers are negative. The case‐study interviews demonstrate that, at local level, agricultural trade liberalisation, increased agricultural output and greater volatility of commodity prices have resulted in farmers opting for lower input use and more secure market forms of production.     

Fish market integration and demand analysis: a Mediterranean case study

This study discusses the importance of delineating market boundaries prior to undertaking demand analysis. The Northern Adriatic Sea is considered a good case study by which to test this approach, given the richness of species landed there and their heterogeneous distribution across the space involved. Three groups of demersal species (whitefish, cephalopods, and crustaceans) are chosen for the study. First, geographical market boundaries are defined for each product (species) using price–price relations between market places. Second, demand is analyzed inside the defined market area through the linear approximation of the inverse almost ideal demand system. Geographical market integration bears several patterns of complete or partial integration, depending on the species. It could be said that integration is higher for species of high economic relevance among regions where large quantities are landed. For all product groups, our estimations suggest that moderate substitution effects do exist among species. The characteristics of the fleets and of the buyers, as well as the biophysical attributes of the sea basin (i.e., species richness and heterogeneous spatial distribution) are discussed as explanatory variables of market integration/segmentation.     

The method of constant stimuli with three rating categories and the use of Rasch models

Logistic Models support an alternative general solution to compute the point of subjective equality (Vidotto et al., I modelli simple logistic e rating scale nella determinazione del punto di eguaglianza soggettivo: una nuova prospettiva per il metodo degli stimoli costanti, 1996) when the Method of Constant Stimuli is used (Bock and Jones, The Measurement and Prediction of Judgment and Choice, 1968). The Extended Logistic Models (Andrich, Appl. Psychol. Meas. II:581–594, 1978) offer the theoretical frame to compute individual and general thresholds when the method of constant stimuli is applied using a forced choice with more than two alternatives. As an example of the advantages of the application of this procedure, we show a data-set derived from an experiment on rhythm perception (Maestrini, La percezione del cambiamento nei ritmi uditivi, 2003), where two groups of experimental and naïve subjects were asked to judge whether the listened rhythm was constant, accelerated or decelerated. We have computed individual and general thresholds differentiating constancy from both acceleration and deceleration for all the different experimental conditions. The main advantage of this solution, compared to traditional psychophysical techniques, is not only related to better estimates of the individual point of subjective equality. The improvement can be summarized in the available fit tests to verify the agreement between the model both for stimuli and subjects.     

Cournot-Walras equilibria in markets with a continuum of traders

Summary In a model with a nonatomic continuum of traders some of which behave strategically while the others remain price-takers, the set of Cournot-Walras equilibria coincides with the set of Walras equilibria. This property is no longer valid when the strategic agents are represented by atoms.It is a pleasure to acknowledge the stimulating discussions we had with R. Amir about the question examined in the present work.     

DYNAMICS OF PRODUCTIVITY AND COST OF LABOUR IN ITALIAN MANUFACTURING FIRMS

This paper studies the impact of size on labour cost and productivity for Italian manufacturing firms. The distributions of both labour cost and productivity display a wide support, even when disaggregated by sector of industrial activity. Further, both labour cost and productivity, when considered alone, are growing with the size of the firm. We investigate this relationship on a new set of data and we are able to show that once productivity differences among firms have been accounted for, size still retains a positive effect on cost of labour in most of the sectors considered.     

The economic debate on power: a Marxist critique

In the economic debate on power, seemingly opposite positions have been presented. Contractualists have claimed that power relations do not exist in capitalism, and radicals have maintained that they are ubiquitous. In the middle, transaction costs and property rights economists have argued that power relations exist only within the firm. The underlying conception, however, is the same: power is an interpersonal relation caused by imperfections in the decision-making context and is incompatible with Walrasian competition. The difference among these theories involves their viewpoints on the concrete spread of imperfections in reality. The thesis of this paper is that this narrow conception of power is a consequence of neoclassical methodology. Following Marx, I analyze power as a social relation, and I discuss three problematic aspects of the neoclassical conception: its individualistic methodology, the assumption of universal rather than historical categories, and an ontology that conflates production and circulation.     

The impact of innovation on economic performance in services

This article empirically explores the relationship between innovation and economic performance in services at the firm level. The empirical analysis is based on a unique longitudinal firm-level data set, which matches the Italian Community Innovation Survey (CIS II) data (1993–1995) and a set of economic indicators provided by the Italian System of Enterprise Account (1993–1998). In particular the empirical analysis aims at assessing whether the presence of innovation and the amount of resources devoted to innovation are able to explain the economic performance of firms in the service sector. The results presented show that innovating firms out perform non-innovating firms in terms of productivity levels and economic growth. Productivity is also found to be linked to the amount of innovation expenditures, especially those devoted to the acquisition and internal development of new software.