Do risk and competition trigger conditional cooperation? Evidence from public good experiments

We investigate the effect of intra-group competition and risk marginal per capita returns on subjects' cooperative behavior in a one-shot public good game—following the well-known approach proposed by Fischbacher, Gächter, and Fehr (2001) and extending the Colasante et al. (2018, 2019) parametrization. We study the interaction between environment and social preferences and test the existence of a causal relationship of risk and competition over cooperative behavior when an individual's benefit of the public good is heterogeneous and uncertain. Our results report experimental evidence about competition fostering cooperative behavior leading to a rise in contribution for all the subjects regardless of their social preferences. However, risk has a detrimental effect on cooperative behavior due to encouraging free riding.     

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.     

Same same,but different: the heterogeneous nature of subcontractors inside Italian industrial districts

Abstract

This paper investigates the structural features and performances of small firms interacting inside regional production networks, with particular regard to Italian industrial districts specialized in footwear production. A typological classification of the various participants in the supply chains is introduced and used to interpret the performances of the main groups identified, focusing on a five-year period following the 2008 financial crisis. The empirical investigation is conducted using an innovative archive containing detailed information on a large share of Italian micro and small firms that are generally excluded from most firm-level databases. The results show that, inside industrial districts, subcontractors are best described as a set of heterogeneous agents with distinct identities and idiosyncratic approaches to the market. The most widely diffused type of supplier still retains most of the structural characteristics traditionally described by the literature. However, industrial districts are also characterized by the presence of advanced forms of subcontractors whose organizational structure differs from that of a traditional supplier: in fact, such producers share more commonalities with end product firms. The analysis of the performances indicates that advanced subcontractors displayed better results during the period 2008–2012, while traditional suppliers tend to occupy a peripheral position in most subcontracting networks.     

Poland

Statistical Annex

Poland     

Bicameralism and corruption

This paper studies the impact of bicameralism on the level of corruption of elected officials. The relationship between parliamentary organization and corruption is analyzed in a two-period game between legislators, citizens and a lobby group, which delivers several predictions that we empirically investigate using a panel of 35 democracies during the period 1996-2004. Assuming that legislators choose a multidimensional policy on which citizens and a lobby group have opposing interests, we show that bicameralism improves the accountability of legislators to the electorate when the same party controls the two chambers and party polarization is high, while the opposite holds if the two chambers are controlled by different parties. These predictions find strong support in our empirical analysis.     

Knowledge Intensity and Knowledge Bases in Internationalization Patterns of SMEs in the Food Sector

This article seeks to enhance understanding of the link between knowledge resources and internationalization patterns of small and medium-size enterprises in the food sector. Knowledge resources are described using the concepts of knowledge intensity and knowledge bases. The study is exploratory and is based on 6 Italian case studies. Four research questions (RQs) are formulated and several considerations are provided. The originality of this article consists of suggesting a framework by combining knowledge intensity and knowledge bases dimensions. Such concepts have not been previously combined and applied in the internationalization literature, neither in general nor about the food sector.     

Does Green Public Procurement lead to Life Cycle Costing (LCC) adoption?

Life Cycle Costing (LCC) is rarely used in public procurement and public institutions have yet to fully understand its potential value for sustainable procurement. The new European Directive on Public Procurement is, however, designed to position LCC as central to sustainable sourcing. Although previous studies have identified positive correlations between Green Public Procurement Policies (GPP) and LCC, it is still unclear how public institutions can further adopt LCC practices by leveraging their experience of green sourcing. In this study an organizational learning theoretical perspective is taken to investigate the circumstances under which public administrations’ experience of GPP – considered as a way of integrating the dimension of environmental sustainability into the sourcing process – stimulates their LCC learning and capabilities – considered as a way to include the sustainability economic dimension. The goal is to understand if the adoption of GPP can stimulate the internalisation of LCC in public tenders. A multinomial logistic regression was conducted using a sample of 120 public administrations located in different countries. The results show that experience of GPP stimulates the internalisation of LCC at a public level, but only under specific conditions. The study contributes to the Sustainable Supply Management literature, being one of the first studies in the field adopting an organizational learning theoretical lens to review the role of experience as significant opportunity to develop capabilities. It also contributes to the organizational learning theory, by confirming that experience can aid learning but only in specific environmental contexts.     

Are green consumers really green? Exploring the factors behind the actual consumption of organic food products

The increasing interest in sustainable consumption has lead several scholars to investigate the determinants that drive the consumption of organic food. Most of this research is based on consumers' self‐reports of their purchasing behavior by exploring declared behavioral intentions. There is a lack of understanding concerning the determinants of organic food consumption based on actual purchasing behavior. To fill this gap, this study is based on a combination of actual purchasing data and self‐reported data from a sample of 79 Italian consumers. The determinants of organic food consumption are explored by analyzing the effects of subjective norms, attitude, perceived behavioral control, intention to buy, organic knowledge, and health consciousness on actual purchasing behavior. Our results suggest that actual purchasing behavior is positively influenced by intention to buy and negatively by subjective norms. Although attitude towards buying organics is positively affected by health consciousness and perceived behavioral control, consumer knowledge about organics is found to influence purchase intentions. Theoretical and managerial implications, along with avenues for future research, are discussed.     

How firms finance innovation. Further empirics from European SMEs

This paper aims to evaluate the role played by different sources of financing when analyzing firms' attitudes towards innovating. The empirical investigation is based on a large sample of European small and medium-sized enterprises (SMEs) observed over the period 2012–2017. Different measures of finance and several robustness checks are used to select a well-behaved probit model. The results show that the probability to innovate increases when firms use internal financing and grants. The same applies when funds come from family and friends, while no conclusive evidence is found for bank loans. Recommendations for public policy to encourage firm-tailored policies to promote investment in intangibles allow firms to benefit from innovation activities. European SMEs will also benefit from capital market developments and the advancement of new financial tools devoted to supporting innovation.     

Energy, property, and the industrial revolution narrative

The Industrial Revolution (IR) story is the core of a mainstream economic history narrative of energy/development relationships, celebrating Modern Economic Growth (MEG) as the increase in per capita energy consumption in the last two centuries. Such a narrative emphasizes mineral technology and private property as the key elements of growth processes. I will criticize the above narrative, from a socio-environmental history perspective, for its inability to account for two crucial aspects of energy history: 1. the role of social power as key determinant in how energy sources are used and to what ends; 2. the socio-ecological costs associated with the increase of energy consumption. I will then review Environmental History studies on energy/industrialization and highlight possible future developments in the field. The article makes a strong point for the need to look at energy transitions as social processes, and to include the unequal distribution of environmental, health, and social costs of mineral energy into global history narratives.