JournalTOCs

Economia e Politica Industriale
Journal Prestige (SJR): 0.249

Citation Impact (citeScore): 1
Number of Followers: 20

Hybrid journal (It can contain Open Access articles)
ISSN (Print) 0391-2078 - ISSN (Online) 1972-4977
Published by Springer-Verlag

[2469 journals]

Business models, consumer data and privacy in platform markets
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  Abstract: Abstract We examine the drivers of the accuracy of the consumer information collected by a digital platform. In an environment where consumers mind their privacy, we compare a pure-intermediation model, where the platform plays a matching function only, by connecting buyers and sellers, with a hybrid business model, where the platform also introduces its private label to compete with third-party sellers. We show that the platform’s incentive to collect demand information in the two models depends on the intensity of intra-platform competition and on its bargaining power vis-à-vis third-party sellers. When end-users perceive the platform’s private label and the third-party sellers’ products as relatively close substitutes (strong intra-platform competition) and the intermediary has a strong bargaining position in the negotiation with the sellers, it tends to acquire less accurate information under the hybrid model than in the pure-intermediation model, at the benefit of consumer privacy. Otherwise, more information is acquired under the hybrid model. These results shed new light on the link between alternative business models, consumer privacy and information collection in the digital sector, and may help explaining why some platforms tend to protect more consumer privacy than others.
  PubDate: 2022-05-11
Survival determinants for Brazilian companies, 1996 to 2016
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  Abstract: Abstract This paper examines the survival determinants of small- and medium-sized Brazilian companies from 1996 to 2016. A nonparametric survival model (Kaplan–Meier hazard function) and a semiparametric model (Cox proportional model) were used to study a period larger than the ones in previous studies. Applying these methods to a sample of 43,865 industrial firms, we analyzed survival rates by size, region and technological intensity of companies, in order to understand which elements influenced the survival of firms. Our main findings was that small companies had the lowest survival rates compared to medium and large companies, in all groups of sectors classified by technological intensity. However, for small companies, the highest survival rate of those classified as having medium technological intensity and those located in Northeast region of Brazil stand out. Both are interesting findings because, first, they go against common sense that assumes that participation, growth, and survival of small companies are linked to low technology sectors, and second, that survival is not linked to deep Brazilian regional inequalities. In addition, the semiparametric survival analysis model showed that the variables that best explain the greater probability of survival of Brazilian small- and medium-sized enterprises (SMEs) are presence in less concentrated markets, sectoral growth, productivity levels and presence in sectors with high technological intensity.
  PubDate: 2022-05-04
The manufacturing output effects of infrastructure development,
liberalization and governance: evidence from Sub-Saharan Africa
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  Abstract: Abstract The study draws inference on the effects of infrastructure development, liberalization, and governance on manufacturing production (MVA) in Sub-Saharan Africa. In order to determine the longrun implications of these factors, and for purposes of retaining estimates efficiency and consistency in the presence of complex errors, we employed the Panel-Corrected-Standard-Error estimator on panel data spanning 2003–2018 for 30 SSA countries. The main result of this in-depth analysis shows that infrastructure development as well as governance are key to manufacturing production. While infrastructure development affects MVA positively in the longrun, an improvement in the financial openness facilitates this linkage but only between transport infrastructure on the one hand, and electricity infrastructure on the other, whereas the converse appears the case when trade liberalization is the moderating variable. Overall, regardless of the type of liberalization, manufacturing output is always higher with better institutional quality. Our findings hold after controlling to additional covariates and are robust to alternative estimation measures. Among the other important policy derivatives of our findings, we emphasize that efforts aimed at reversing Africa’s pervasive infrastructure deficit, in ways that enhance manufacturing share in GDP, must be carefully nuanced under the avoidance of the incautious liberalization policies. We render support to the regional efforts to improve infrastructure, substantially curb poor governance while vigorously promoting the rule of law, regulatory quality, government effectiveness, voice and accountability.
  PubDate: 2022-04-18
Compensation reform analysis on inflated credit rating attenuation
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  Abstract: Abstract This study investigates the impact of compensation schemes on the decisions of a credit rating agencies (CRA) regarding how much effort to exert when learning about the type of a portfolio and how to disclose the learned information in the form of credit rating. Two compensation schemes are considered: (i) the rating contingent fee scheme, under which the fee is paid only when a favorable rating is provided, and (ii) the outcome contingent fee scheme, under which the fee is paid only when the rating accurately predicts the true type of the portfolio. The CRA’s optimal effort exertion level and disclosure policy selection when offered each type of compensation schemes are characterized, taking into account the possibility of inflating ratings as well as the reputational cost from misreporting ratings. Our findings reveal that when the CRA is paid a rating contingent fee, it may strategically inflate ratings if the reputational cost is minimal. In contrast, when the CRA receives an outcome contingent fee, it always exerts the optimal level of effort to produce a credible signal and reports ratings truthfully. Hence, the outcome contingent fee scheme has potential to reduce the incidents of inflated credit ratings perceived as a radical cause of financial crises.
  PubDate: 2022-04-07
Innovation and the persistence of monopoly under diseconomies of scope or
scale
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  Abstract: Abstract We participate in the lasting debate about the persistence of monopolies under technological change, by examining two deterministic games modelling innovation auctions. We highlight some novel aspects within such debate. If product innovation is at stake, the joint effect of diseconomies of scope and product differentiation may allow the entrant to acquire the innovation and give rise to a duopoly. Process innovation is analysed in a model with increasing marginal production costs to show that the innovating monopolist always uses both technologies by virtue of Jensen’s inequality, and this is sufficient but not necessary to preserve its monopoly power.
  PubDate: 2022-03-28
Upstream regulation and non-separable innovation
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  Abstract: Abstract The goal of this paper is to study the impact of input regulation on non-separable innovation in vertically related industries. For this purpose, we consider a setting where a vertically integrated upstream monopolist, who supplies the essential input to its downstream competitor at linear regulated prices, chooses its innovation level without being able to separate between process and product innovation. We find that when the overall upstream innovation activity results in more (less) product than process innovation, less stringent input price regulation decreases (increases) the level of innovation activity. Since more light regulation implies lower input prices intensifying downstream competition, the “Schumpeterian” (“escape competition”) effect dominates when product (process) innovation prevails. We show that this finding arises because the vertically integrated firm strategically sets its innovation level to mitigate the negative impact of an input price reduction on its profit. We draw significant managerial and policy implications concerning regulated vertically integrated industries, such as telecommunications and energy. In this direction, we also shape the mechanisms that foster innovation without much affecting the intensity of downstream competition.
  PubDate: 2022-03-02
  DOI: 10.1007/s40812-022-00213-5
The institutional and socio-technical determinants of renewable energy
production in the EU: implications for policy
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  Abstract: Abstract Despite the consensus that the transition to renewable energy is a process that encompasses institutional, regulatory, technical, political, social, and cultural aspects, such issues have rarely been addressed in a comprehensive way. This study explores the determinants of renewable energy production (REP), focusing on institutional and socio-technical aspects. We employ a panel vector autoregressive (PVAR) model to test dynamic relationships for the period 1990–2015 among several variables, as have emerged in the literature: REP, policy stringency, public awareness, lobbying, education, controlling for income and energy imports. Focusing indiscriminately on 18 European Union (EU) member states, the results show that environmental policy stringency does not influence REP, while income and education impact negatively. This evidence is counter-intuitive, and would be surprising if we did not consider the strong heterogeneity between countries. EU member states are engaging in energy transition at different speeds, depending on their individual starting point: this differs from country to country in terms of installed capacity and energy security. Moving from the recent European Green Deal, we divide the sample into two panels based on energy imports to account for different starting points: countries less active on the production side (that depends particularly on energy imports), and countries more active on the production side. Results for the first panel show that an increase in policy stringency would lead to a decrease in lobbying and an increase in REP. Policy efforts must be clearly established and consistently preserved to support REP, at least if there are increasing returns to exploit. Results for the second panel show that lobbying negatively affects the transition to REP, while an increase in public awareness will promote an increase in REP. Therefore, priority should be given to the ‘social’ aspect, and policymakers should increase efforts to reduce the proportion of energy generated from oil, natural gas, coal, and nuclear fuel.
  PubDate: 2022-03-01
  DOI: 10.1007/s40812-022-00212-6
'R&D and export performance: exploring heterogeneity along the export
intensity distribution'
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  Abstract: Abstract This study analyses the relationship between firm-level innovative effort as measured by R&D expenditures and export intensity. We apply quantile regression techniques to a sample of Italian firms to verify whether R&D expenditures’ effect varies along the conditional distribution of export intensity, after controlling for censoring and endogeneity issues. Empirical findings suggest that the effect of R&D expenditures on export intensity is positive and that firms taking most advantage from R&D activity are in the right tail of the export intensity distribution (from the 70th quantile onwards), that is, those exporting 50% of their sales or more. Overall, the results prove robust to several specification checks and suggest not only that firms’ innovative efforts help explaining heterogeneity in export intensity performance, but also that its positive effect differs across the export to sales ratio distribution. This implies that innovation policy measures might be more effective for firms characterised by a relatively high export intensive margin.
  PubDate: 2022-02-19
  DOI: 10.1007/s40812-022-00209-1
Directors’ compensation, ownership concentration and the value of the
firm: evidence from an emerging market
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  Abstract: Abstract We examine the association between directors’ compensation and firm value and investigate whether ownership concentration moderates this relationship by utilising a sample of Malaysian public-listed firms for the period from 2004 to 2014. Using fixed effect regression, we find that the remuneration of executive and non-executive directors is positively related to firm value. However, there is no conclusive evidence on the moderating effect of ownership concentration on the relationship between executive directors’ and non-executive directors’ compensation and firm value. Our findings indicate that executive and non-executive directors’ compensation packages should be linked to firm performance. The implication of this research addresses one of the key issues in corporate finance i.e., whether it is worth compensating directors in emerging markets or not.
  PubDate: 2022-02-17
  DOI: 10.1007/s40812-022-00210-8
Trade networks and shock transmission capacity: a new taxonomy of Italian
industries
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  Abstract: Abstract Applying the social network analysis to domestic and international input–output tables, we position the Italian sectors within their trade networks to analyze their ability to transmit economic shocks within the economic system. In this context, we propose a new taxonomy that classifies sectors in terms of the extent to, and the speed at, which they tend to spread domestic and foreign impulses throughout the Italian economic system. Our results show a mismatch between the industries which have a central position within international trade network and industries which play a central role for the domestic propagation of shocks. In this vein, the capacity of transmitting stimuli from abroad is limited, weakening the possibility to benefit from positive shocks, even though it could partially provide a shelter from negative one in the international business cycle.
  PubDate: 2022-01-29
  DOI: 10.1007/s40812-022-00208-2
Are the stabilities of stablecoins connected'
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  Abstract: Abstract This study analyzes the interconnection of the stability of prominent stablecoins including Tether (USDT), USD Coin (USDC), Paxos Standard (PAX), TrueUSD (TUSD) and DAI from 23/11/2019 to 1/04/2021. We find (i) market price fluctuations vary across stablecoins, (ii) instabilities in USDT and USDC significantly drive those of other stablecoins but less convincing evidence for the reverse impact, and (iii) that increases (decreases) in USDT market prices significantly depress (raise) the market prices of the other stablecoins. Interestingly, the algorithmic stablecoin, DAI, is found to be less stable than its USD-backed counterparts.
  PubDate: 2022-01-20
  DOI: 10.1007/s40812-022-00207-3
Measuring adoption of industry 4.0 technologies via international trade
data: insights from European countries
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  Abstract: Abstract The investigation of the adoption of Industry 4.0 (I4.0) technologies and its implications, both at the macro and micro level, has attracted growing interest in the recent literature. Most studies have looked at the production and diffusion of related innovations and knowledge, but what do we know about the adoption of these technologies over time and across countries' In this paper, we look at three I4.0 technologies and present a new empirical perspective able to overcome the limitations of existing attempts at measuring their adoption, generally based on small-scale and country-specific studies. Our study provides a methodology that allows measuring adoption across countries for a relatively long time period. In so doing, we build on the well-established idea in the international economics literature that trade of capital goods captures technology diffusion, and so adoption across countries. We provide preliminary and comprehensive evidence on the adoption of these I4.0 technologies in Europe and set the premise for monitoring its evolution and implications on a large scale and over time.
  PubDate: 2022-01-10
  DOI: 10.1007/s40812-021-00204-y
Industry characteristics and agglomeration of heterogeneous firms
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  Abstract: Abstract In this paper, we study the impact of two industry characteristics—relocation cost and market competition—on the location choice of firms with productivity heterogeneity between large market and small market. We find that only in industries with high relocation costs or fierce market competition, large markets are more attractive to high-productivity firms. We use Chinese firm data to test the predictions of the theoretical model, and the empirical results are consistent with the conclusions of the theoretical model.
  PubDate: 2022-01-04
  DOI: 10.1007/s40812-021-00206-w
Per-unit versus ad-valorem royalty licensing in a Stackelberg market
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  Abstract: Abstract We consider licensing of a non-drastic innovation by a licensor that interacts with a potential licensee in a Stackelberg duopoly, comparing per-unit and ad-valorem royalty two-part contracts and showing why and when each licensing deal should be used. We contribute three findings to the literature. First, ad-valorem royalty is preferred when the licensor plays as leader in the marketplace, but per-unit royalty is preferred when the licensor plays as follower. Second, only innovations that do not hurt consumers are socially beneficial. Third, our model also suggests that both the licensor’s status as a leader or follower in the marketplace and the innovation size determine the incentive to engage in innovative activities.
  PubDate: 2021-12-18
  DOI: 10.1007/s40812-021-00205-x
Alliances need autonomy
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  Abstract: Abstract This short paper considers Mariotti’s persuasive case for a new alliance between economics and engineering. The case rests on four main axioms, and we discuss why these are so important. Then, we explain why the alliance needs sufficient autonomy from its parent disciplines to succeed.
  PubDate: 2021-12-01
  DOI: 10.1007/s40812-021-00197-8
Organizing and better understanding transdisciplinarity in the context of
artificial intelligence expansion: a crucial role for the new alliance
between economics and engineering
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  Abstract: Abstract Transdisciplinarity might be essential for the future of humanity, as a discipline and “way of being”. Synergistically with other initiatives, the “new alliance” proposed by Mariotti (J Ind Bus Econ https://doi.org/10.1007/s40812-021-00187-w, 2021) could make precious contributions to: (i) the organization of the emerging transdisciplinarity university; (ii) a better understanding of the transdisciplinary “way of being”, by contrast with artificial intelligence.
  PubDate: 2021-12-01
  DOI: 10.1007/s40812-021-00196-9
Economics not engineering
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  Abstract: Abstract Economics, ideally a positive science pursuing knowledge “for its own sake,” is distinguished from engineering, an intrinsically purposive attempt to control nature or people to serve human interests. The attempt to meld them in a new transdiscipline inappositely brings engineering’s element of purpose to what should be a positive economic science. Only Mariotti’s economics and engineering maintains the critical distance necessary for economic scientists to evaluate the purposes to which economic engineers put their theories. The history of scientific management is briefly sketched to suggest that the new transdiscipline is likely to be reduced to a tool for profit-seeking, an economics for engineering.
  PubDate: 2021-12-01
  DOI: 10.1007/s40812-021-00194-x
Design, systems approaches, and the engineering-economics nexus
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  Abstract: Abstract Economics and engineering are discovering new opportunities for cross-fertilization. This is partly given to the advent of modern artificial intelligence methods. These opportunities have appeared in the past, resulting in marginal improvements toward integration. As explained by Mariotti (Journal of Industrial and Business Economics, 2021), over the years there has been an intertwining of the two disciplines along the progression of economics for/and/as engineering. Mariotti (2021) also points out that a real transdisciplinary integration (i.e., à la Prigogine) implies a mutual nurturing, where one discipline´s conceptual apparatus is incorporated into the other. A fine-grained view of the epistemological differences of the two disciplines reveals that an integration might be more likely along some, but not all directions. I explain these differences based on different connotations of the concept of design. Particularly, when referring to design aspects of social systems, I also argue that systems approaches may serve as a bridge to integrate economics and engineering. Finally, I offer alternatives to explore how this integration might be undertaken.
  PubDate: 2021-12-01
  DOI: 10.1007/s40812-021-00199-6
Price discovery in the cryptocurrency market: evidence from institutional
activity
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  Abstract: Abstract This study analyzes the role of information shares of futures contracts in the price discovery of Bitcoin as well as its impact on the correlation of Bitcoin and traditional assets including S&P500, gold and bond. Time series estimations reveal positive and significant effects of information shares from Bitcoin futures trading activities, suggesting that the information from institutional trading activities contributes to the price discovery of Bitcoin. In addition, the study finds that increases in information shares of institutional trading in Bitcoin futures negatively affect Bitcoin-S&P500 and Bitcoin-gold correlations, but raise the Bitcoin-bond correlation.
  PubDate: 2021-11-19
  DOI: 10.1007/s40812-021-00202-0
The economics–engineering nexus: response to the commentaries
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  Abstract: Abstract This paper contributes to the debate on the relationship between economics and engineering that was opened in a previous article by the author and the comments made on the subject by other scholars, all published in the 4/2021 Issue of the Journal. It discusses the knowledge advancement and problem-solving opportunities offered by the interaction and cross-fertilization that occurs between the two disciplines. It claims that the distance between the epistemology and mentality of fundamental branches of economics and engineering is narrowing, thereby allowing a fruitful knowledge collaboration. An alliance between independent peers is the best form of governance to exploit the potentialities inherent to the relationship, as an alternative to both “economic imperialism” and “reverse imperialism”. Relatedly, the paper delves into the role of economic complexity and artificial intelligence in pushing this paradigm shift of the economics–engineering nexus, and it re-discusses the meaning and content of transdisciplinarity in the context of such an alliance. Finally, the paper expresses the hope that these topics will become a matter of debate in a widespread community of scholars.
  PubDate: 2021-11-17
  DOI: 10.1007/s40812-021-00203-z