Template-type: ReDIF-Article 1.0 Author-Name: Rosella Levaggi Title: Fiscal Federalism in the presence of impure public goods Abstract: Fiscal Federalism in the Presence of Impure Public Goods (by Rosella Levaggi) - ABSTRACT: The traditional theory for fiscal federalism assumes that the lower tier is more efficient in producing local public goods because of information asymmetry, while on the finance side Central Government might be more efficient in raising resources that will then be distributed through grants-in-aid. This scheme does not take into account that services produced at local level are usually impure public goods and that Central Government might want to pursue other objectives instead of a straight maximisation of social welfare. Based on the modelling structure is based on Lancaster?s characteristic approach as applied to impure public goods by Cornes and Sandler (1994), the model developed in this paper allows to derive grants-in aid distribution formulae in this environment and a set of rules that allows to establish when fiscal federalism is a superior alternative to decentralisation. Keywords: Flypaper Effect, Grants-in-aid, Re-election Classification-JEL: Keywords: Note: Pages:5-23 Volume: 2007/91 Year: 2007 Issue:91 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=32325&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2007-091001 Number: 1 Template-type: ReDIF-Article 1.0 Author-Name: Giovanni Verga Author-Name: Giuseppe Mastromatteo Title: Institutional variables, capital flows and GDP: a causality analysis Abstract: Institutional Variables, Capital Flows and GDP: A Causality Analysis (by Giuseppe Mastromatteo, Giovanni Verga) - ABSTRACT: uring the last years the effects of socio-institutional and political variables on economic conditions has gained importance in the literature. This paper investigates the links between socio-institutional variables and capital inflows and GDP relative to a sample of countries for the years 2003-2004. First of all, the causality relationships between the variables under consideration are investigated and identified by means of a particular software, called TETRAD; after that, a system of equations is estimated. The results support the hypothesis that economic freedom is crucial for both capital flows and GDP. Keywords: Institutional Variables, Capital Flows, Freedom Indices, GDP, Causality Classification-JEL: Keywords: Note: Pages:25-54 Volume: 2007/91 Year: 2007 Issue:91 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=32326&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2007-091002 Number: 2 Template-type: ReDIF-Article 1.0 Author-Name: Luca Giordano Author-Name: Antonio Lopes Title: Management quality and risk preference as determinants of efficiency in the italian banking system Abstract: Management Quality and Risk Preference as Determinants of Efficiency in the Italian Banking System (by Luca Giordano, Antonio Lopes) - ABSTRACT: Italian banks are characterized by deep efficiency inequality across size, location, Cooperative Credit Banks, and Limited Companies. Moreover, non-performing loans are higher in the South than elsewhere. In view of these evidences we asked: is the efficiency gap of the southern banks (and therefore their lower screening and monitoring ability) the primary source of their higher level of bad loans? Or is the poorer quality of the southern bank loans (due to the adverse macroeconomic environment) that causes lower efficiency? As a second point to investigate, we recognize that banks have different risk aversion, which affects the choice of input vector, and we expressly take into account the capitalization degree (as a buffer against the risk) in estimating the bank cost and profit stochastic frontier. The results of the analysis, based on the stochastic frontier models, provide evidence in favour of the endogeneity theory of non-performing loans. Keywords: Bank Efficiency, Stochastic Frontiers, Italian Banks Classification-JEL: Keywords: Note: Pages:55-73 Volume: 2007/91 Year: 2007 Issue:91 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=32327&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2007-091003 Number: 3 Template-type: ReDIF-Article 1.0 Author-Name: Filippo Reganati Author-Name: Rosanna Pittiglio Title: Two-way international trade and production in Italy: a country/industry specific analysis Abstract: Two-way International Trade and Production in Italy: A Country/industry Specific Analysis (by Filippo Reganati, Rosanna Pittiglio) - ABSTRACT: Economic interactions among high-income developed countries are characterized by high degrees of both intra-industry trade and intra-industry affiliate production and sales. Similar high-income countries both heavily trade with and invest into each other. This paper examines the determinants of Italian intra-industry trade and intra-industry production with most European trading partners using a dataset where variables are different not only between countries but also between sectors of the same country. Using different econometric methods, the results obtained suggest that intra-industry trade and intra-industry production tend to share the same determinants; in particular they are higher as the two partner countries are more similar in relative factor endowments (physical and technological capital), in relative country size and are less geographically distant. Keywords: Intra-industry Trade, Intra-industry Foreign Direct Investment Classification-JEL: Keywords: Note: Pages:75-89 Volume: 2007/91 Year: 2007 Issue:91 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=32328&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2007-091004 Number: 4 Template-type: ReDIF-Article 1.0 Author-Name: Giulio Guarini Title: Instabilit? harrodiana e teoria della crescita endogena Abstract: Harrodian Instability and Endogenous Growth (by Giulio Guarini) - ABSTRACT: Theory In this article, I study the harrodian instability in the growth processes with mainstream production functions, analyzing three important approaches: Lucas (1988), Rome (1990), Grossman-Helpman (1991). After describing that harrodian instability is important for the economic growth but it is absent in these models, I build new models with the same mainstream production functions to analyze the convergence process between the warranted growth rate and the natural growth rate when the interest rate changes. Finally, for these models, I write the sraffian system with heterogeneous capital goods and I show that the convergence process can have infinitive states and solutions caused by infinitive states of the relation between interest rate and capital intensity like multiple equilibrium, nonexistence of equilibrium and instability of equilibrium. Keywords: Harrodian Instability, Endogenous Growth Model, Cambridge Capital Controversy Classification-JEL: Keywords: Note: Pages:91-116 Volume: 2007/91 Year: 2007 Issue:91 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=32332&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2007-091005 Number: 5 Template-type: ReDIF-Article 1.0 Author-Name: Maurizio Lisciandra Title: Agency theory and work incentives Abstract: Agency Theory and Work Incentives (by Maurizio Lisciandra) - ABSTRACT: This paper is an extensive review of agency theory applied to labour incentives. It introduces a generalised principal-agent model that goes through a certain degree of critical assessment. The analysis of the optimality within the trade-off of insurance against incentives is enriched by bringing in the contribution of established extensions and new approaches to the agency theory and, to a larger extent, labour incentives. Keywords: Agency Theory, Incentives, Labour Contracts Classification-JEL: Keywords: Note: Pages:117-146 Volume: 2007/91 Year: 2007 Issue:91 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=32329&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2007-091006 Number: 6 Template-type: ReDIF-Article 1.0 Author-Name: Margherita Scarlato Title: Crescita e sviluppo: una nota Abstract: A Note on Growth and Development (by Margherita Scarlato) - ABSTRACT: This short paper was provoked by the book Growth and Economic Development: Essays in Honour of A.P. Thirlwall. We critically survey the most prominent theories of development economics. We start discussing the heritage of the keynesian tradition in the development issues and we compare it to the neoclassical approach of the New Growth Theories. We also deal with the institutional approach wich most recently gathered a profound influence on development economics thinking. Keywords: Growth Models, Development Policies Classification-JEL: Keywords: Note: Pages:147-158 Volume: 2007/91 Year: 2007 Issue:91 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=32330&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2007-091007 Number: 7 Template-type: ReDIF-Article 1.0 Author-Name: n.d. Title: Recensioni Abstract: Classification-JEL: Keywords: Note: Pages:159-173 Volume: 2007/91 Year: 2007 Issue:91 File-URL:http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=32331&Tipo=Articolo PDF File-Format: text/HTML Handle: RePEc:fan:steste:v:html10.3280/Ste2007-091008 Number: 8