Trade in Parts and Components and the Industrial Geography of Central and Eastern European Countries

Growing inflows of FDI and the increasing integration of domestic firms into International Production Networks (IPNs) set up by EU-15 partners have yielded a rise in trade in parts and components for Central and Eastern European Countries (CEECs). As a consequence, new patterns of localization of industrial activities have been observed in the region since the mid-1990s. In this paper, I propose a comprehensive model of trade and production which tries to explain cross-country variations of sectoral output by comparative advantages (Ricardo, Heckscher–Ohlin) and agglomeration forces (home market effect, market potential), with a focus on the role played by trade in middle products. The empirical implementation reveals that the higher is the involvement in IPNs the larger is the domestic share of regional output. Comparative advantages are a crucial determinant of localization as opposed to agglomeration forces. I argue that these results can be interpreted as an assessment of the predictive power of two alternative trade theories. JEL no.  F10, F12, F14, F15     

Moral Motivation Across Ethical Theories: What Can We Learn for Designing Corporate Ethics Programs?

In this article we discuss what are the implications for improving the design of corporate ethics programs, if we focus on the moral motivation accounts offered by main ethical theories. Virtue ethics, deontological ethics and utilitarianism offer different criteria of judgment to face moral dilemmas: Aristotle’s virtues of character, Kant’s categorical imperative, and Mill’s greatest happiness principle are, respectively, their criteria to answer the question “What is the right thing to do?” We look at ethical theories from a different perspective: the question we ask is “Why should I do the right thing?” In other words, we deal with the problem of moral motivation, and we examine the different rationale the main ethical theories provide. We then point out the relation between moral motivation and the concept of rationality in the different approaches – is acting morally seen as an expression of rational behavior? Our analysis of moral motivation provides a useful framework to improve the understanding of the relationships between formal and informal elements of corporate ethics programs, emphasizing the importance of the latter, often overlooked in compliance-focused programs. We conclude by suggesting that the concept of moral imagination can provide a unifying approach to enhance the effectiveness of corporate ethics programs, by providing an intangible asset that supports the implementation of their formal components into management decision making.     

An exercise in composite indicators construction: Assessing the sustainability of Italian regions

This paper presents a piece of research aimed at evaluating the relative sustainability of the Italian Regions. After selecting a core set of indicators, for which we referred to the EU Sustainable Development Strategy, we built a composite index and checked for its robustness. As a result we got ‘many numbers’, that is, a range of possible rankings for Italian Regions.     

Rational preferences under ambiguity

This paper analyzes preferences in the presence of ambiguity that are rational in the sense of satisfying the classical ordering condition as well as monotonicity. Under technical conditions that are natural in an Anscombe?CAumann environment, we show that even for such a general preference model, it is possible to identify a set of priors, as first envisioned by Ellsberg (Q J Econ 75:643?C669, 1961). We then discuss ambiguity attitudes, as well as unambiguous acts and events, for the class of rational preferences we consider.     

On the relationship between population change and sustainable development

This paper investigates the relationship between population growth and economic growth, through the study of fertility choices and their effects on natural resources. It aims at analyzing the interactions between endogenous fertility choices and the environment and their link to the sustainable matter. We analyze a growth model driven by natural resources and without production, where agents have jointly to determine consumption and fertility, taking into account the effects of their decisions on the dynamics of natural resources. We adopt the most optimistic view on natural capital (it generates endogenous growth) and the weakest notion of sustainable paths (all variables are positive): in such a framework we expect that sustainable paths exist. We instead show that this is not always true. In fact, even if renewal capacity of natural resources is unbounded, not always can a sustainable path be found: this depends on the difference between the stationary fertility rate and the mortality rate. If the stationary fertility is lower than the mortality rate, a sustainable path will not be found, and in such a case public intervention is necessary in order to address the economy along a sustainable path. This can simply be done through policies affecting public attention to environmental protection or the intensity of the dilution effect.     

On how buyback and remanufacturing strategies affect the profitability of spare parts supply chains

The purpose of this paper is to provide a case-based framework to offer insights on the opportunity of recovering parts. We consider a two-stage spare parts supply chain, where independent repair shops are responsible for handling the repair process. There are two options to meet spare parts demand: repair shops may replace the part with a new one (ordered from the OEM) or they may use a part that they themselves repaired before. While repair shops achieve a larger profit by repairing parts, the OEM would prefer the use of new parts. However, he has no control over demand which might be obtained by offering buyback of broken parts. Furthermore, the OEM could recover these parts on a higher level, thus reducing production/procurement of new parts. The main contribution of this paper is the provision of a simple deterministic framework for answering the question whether a buyback option should be offered by the OEM to the repair shops, and which buyback price should be paid for each returned core. We further highlight the impact of remanufacturing performed at the OEM on the profitability of buyback.     

Portfolio selection, diversification and fund-of-funds: a note

The present paper examines the performance and diversification properties of active Australian equity fund‐of‐funds (FoF). Simulation analysis is employed to examine portfolio performance as a function of the number of funds in the portfolio. The present paper finds that as the number of funds in an FoF portfolio increases, performance improves in a mean–variance setting; however, measures of skewness and kurtosis behave less favourably given an investor's preferences for the higher moments of the return distribution. The majority of diversification benefits are realized when a portfolio of approximately 6 active equity funds are included in the FoF portfolio.     

Adolescents’ attitudes towards organic food: a survey of 15‐ to 16‐year old school children

Adolescents are the consumers of tomorrow; therefore policies aimed at increasing organic food consumption should address the needs of this group. To discover their attitudes towards organic food and their knowledge of the subject, a survey among almost 700 school children aged 15–16 years was conducted. Four main groups of questions were used: adolescents’ knowledge of organic food, attitudes, whether they bought organic food and the perceived influences they exerted on the buying patterns of their parents. From the survey it can be concluded that adolescents’ attitudes towards organic food are positive, but their knowledge of and their willingness to buy it are low. Campaigns aimed at encouraging the purchasing of organic food targeted at adolescents should particularly emphasize those characteristics of organic foods that they can relate to their interests and ethical preferences, for example, animal welfare and environmental considerations.