Government spending under non-separability: a theoretical analysis

We derive analytic implicit form conditions for the qualitative analysis of government spending multipliers and the optimal level of government spending in presence of non-separability between private and public components of aggregate demand. Using the simplest neo-classical flexible price model with no capital accumulation, we show that Edgeworth dependence is not a suitable condition to automatically assess the signs of the consumption and output multipliers, for which a more complex analysis must be carried out. We propose a detailed investigation of the form and the characteristics of the involved utility functions, which are crucial to such evaluation. We also show that if Edgeworth complementarity is strong enough, a public spending stimulus can raise at the same time private consumption and real activity. In order to reconcile our general framework with existing literature, we discuss recent examples of non-separable functional forms from the standpoint of our results, and argue that their consistency relies on specific assumptions about steady-state points.     

Citizen involvement in promoting sustainable mobility

This article proposes a methodology for promoting public involvement in the planning process for the promotion of sustainable mobility. The concept of the focus group (FG) is widened and a method based on holding larger groups defined as mega focus groups (MFG) is proposed. These MFG allow all sections of society to be represented in the participation process, thereby involving the population at a strategic level in subjects of general interest to society and later, holding smaller FGs on more specific subject matters (tactical level).The advantage of the larger MFG over the smaller FG is that they can obtain more information (between 40 and 60 people take part) from easily run meetings (similar to the FG). The MFG also provide a territorial representation of peoples’ opinions and serve as a mechanism for selecting the participants in the smaller focus groups. The information extracted from both the MFG and FG about people’s perceptions of sustainable mobility provides the background to the design of pilot surveys on urban mobility. For a better understanding of the development of this method and its possible applications in any town or city the article includes its practical application in the medium sized city of Santander (Northern Spain).     

Tax Incentives and Household Investment in Complementary Pension Insurance: Some Recent Evidence From the Italian Experience

We show by a simple difference‐in‐difference methodology that, contrary to prior research, robustly raising the deductibility limit associated to pension fund holdings in Italy did not succeed in boosting households’ contributions to this form of savings. Some other empirical findings also suggest that this policy measure may have not even increased the average amount of first‐time contributors to such funds. In view of the specific features of the Italian market for complementary insurance (relatively young and less developed), these empirical results might be of interest to policymakers acting in countries with similar features (for instance, some of the more recent EU members).     

Lombard Enlightenment and Classical Political Economy

Abstract

This paper discusses the formative steps of ‘Classical’ Political Economy under the joint influence of the Italian and Scottish Enlightenment. Pietro Verri is a leading figure of the Italian Enlightenment and he belongs to the Lombard branch of the Italian School of Political Economy (sometimes named ‘School of Milan’) during the latter half of the eighteenth century. Schumpeter's treatment of the ‘School of Milan’ describes Pietro Verri as ‘the most important pre-Smithian authority on Cheapness-and-Plenty’. A careful canvass of the texts substantiates Schumpeter's suggestion. Verri stands out as a key figure in the transition from Physiocracy to the Smithian system.     

The impact of faking on Cronbach’s alpha for dichotomous and ordered rating scores

In many psychological inventories (i.e., personnel selection surveys and diagnostic tests) the collected samples often include fraudulent records. This confronts the researcher with the crucial problem of biases yielded by the usage of standard statistical models. In this paper we applied a recent probabilistic perturbation procedure, called sample generation by replacement (SGR)—(Lombardi and Pastore, Multivar. Behav. Res 47:519–546, 2012), to study the sensitivity of Cronbach’s alpha index to fake perturbations in dichotomous and ordered data, respectively. We used SGR to perform two distinct SGR simulation studies involving two sample size conditions, three item set sizes, and twenty levels of faking perturbations. Moreover, in the second SGR simulation study we also evaluated an additional factor, type of faking model, to study sample reliability under different modulations of graded faking (uniform faking, average faking, slight faking, and extreme faking). To simulate these more complex faking models we proposed a novel extension of the SGR perturbation procedure based on a discrete version of the generalized beta density distribution. We also applied the new procedure to real behavioral data on emotional instability.     

Factors helping the HR function gain greater acceptance for its proposals and innovations: evidence from Spain†

On the basis of the sense-making and sense-giving literature, this study addresses factors helping the HR function gain greater acceptance by employees for its proposals and innovations. Using an original sample of 298 employees from nine firms in Spain, we find that HR department credibility is only one of the factors that influence employees' acceptance. Other essential elements are top management and supervisor support. We also investigate the consequences that differential levels of support from supervisors and top managers can have for the acceptance of HR innovations, and we find that supervisor support carries more weight than that of top managers. Finally, we explore variations in the importance of the HR function credibility as an acceptance enabler under different organizational innovation climates. The results suggest that HR credibility plays an essential role independently of climate.     

Cooperation under alternative punishment institutions: An experiment

While peer punishment has been shown to increase group cooperation, there is open debate on how cooperative norms can emerge and on what motives drive individuals to punish. In a public good experiment we compared alternative punishment institutions and found (1) higher cooperation levels under a consensual punishment institution than under autonomous individual punishment; (2) similar cooperation levels under sequential and simultaneous punishment institutions.     

Selection by committee: Anonymity and gratitude

What kind of candidate is selected into a job when the principal has to appoint a committee to measure the candidates’ ability and select a winner? We find that if the committee takes into account the candidate’s gratitude towards them, a candidate with less than first best ability will be selected. A relevant exception may occur if the first best is the overall best candidate. First best selection is always achieved if the committee is anonymous to the candidates. If the committee is not detached enough from the candidates then delegation fares even worse than random selection.