This paper provides a method for the analysis of the spatial and temporal diffusion of shocks in a dynamic system. We use changes in real house prices within the UK economy at the level of regions to illustrate its use. Adjustment to shocks involves both a region specific and a spatial effect....

In December 2016, in the middle of the "European refugee crisis", the Italian electorate voted for a referendum on crucial constitutional reform promoted by the governing party. The official aims of the reform were both to improve the country's governability and stability and to simplify the...

An important issue in the analysis of cross-sectional dependence which has received renewed interest in the past few years is the need for a better understanding of the extent and nature of such cross dependencies. In this paper we focus on measures of cross-sectional dependence and how such...

This paper extends the transformed maximum likelihood approach for estimation of dynamic panel data models by Hsiao, Pesaran, and Tahmiscioglu (2002) to the case where the errors are crosssectionally heteroskedastic. This extension is not trivial due to the incidental parameters problem that...

This paper develops a model for dynamic binary choice panel data that allows for unobserved heterogeneity to be arbitrarily correlated with covariates. The model is of the exponential type. We derive moment conditions that enable us to eliminate the unobserved heterogeneity term and at the same...

This paper is concerned with testing the time series implications of the capital asset pricing model (CAPM) due to Sharpe (1964) and Lintner (1965), when the number of securities, N, is large relative to the time dimension, T, of the return series. In the case of cross-sectionally correlated...

"In this paper we investigate the existence and the size of territorial differences in Italian students' mathematical competencies. Our analysis benefits from a new data set that merges the 2003 wave of the OECD Programme for International Student Assessment (PISA) with territorial data...

We use a unique firm-level data set merging administrative information on average wages paid by firms by skill level (blue collars and white collars), Population Census information on the local stock of human capital available to firms and survey information on firm characteristics to...

In this paper we investigate the causal effect of immigration on trade flows, using Italian panel data covering very small geographical units (NUTS-3). Exploiting the very favorable setup offered by Italy's features - the very high number of countries of origin of immigrants ('super-diversity'),...

We use small Italian regions (i.e. provinces) to investigate the causal effect of foreign immigration on innovation during 2003-2008. Using instrumental variables estimation (based on immigrants' enclaves), we find that the overall stock of immigrants did not have any effect on innovation....