In the recent financial crisis, risk management tools have been proven inadequate. Model risk, a key component of bank risk, has shown its negative impact. It seems that risk models did not cover the included risks comprehensively and were not kept up-to-date by banks, and also rating agencies....

We demonstrate that the co-existence of different motives for liquidity preferences profoundly affects the efficiency of financial intermediation. Liquidity preferences arise because consumers wish to take precautions against sudden and unforeseen expenditure needs, and because investors want to...

We present a dynamic occupational choice model with a learning algorithm simultaneously capable to explain entrepreneurial entry, exit, and survival. According to our model, those individuals decide to become entrepreneurs who expect their productivity to be highest when managed by themselves....

The paper develops a simple theoretical model of inventory control in global value chains. It identifies a role for intermediaries in managing inventory, and shows that inserting an intermediary as an additional link in a value chain is profitable when demand volatility is high. It also provides...

This paper investigates the role of firm productivity in drawing firm boundaries in global sourcing. Our analysis focuses on how productivity affects the allocation of ownership rights between the headquarter of a firm and its intermediate input supplier (vertical integration vs. outsourcing),...

This paper is a first attempt to analyse the relationship between spatial agglomeration and firms’ organizational structures. It takes advantage of a large data set on Italian business groups that allowed us to analyse the differences in the presence and characteristics of business groups...

We analyze the spatial diffusion of laser-technology in Germany during the early phase of development, between 1960 and 2005. Research in this new technological field began in a few larger centers and then spread to other regions. In the early years, a large firm of the electronics industry...

The creative economy is a holistic and multidisciplinary concept that deals with the interaction between economics, culture and technology, and centred on the production of creative contents in goods and services. One of the most relevant dimensions of creativity is the territorial one. Despite...

We analyze self-selection decisions regarding teamwork both theoretically and empirically. While we focus on individual talent, we also investigate the effects of team tasks, individual teamwork skills, and expectations concerning the talent and teamwork skills of potential teammates as further...

This paper aims to contribute to the ongoing discussion on horizontal vs. vertical integration as further development path in the financial security service industry, consisting of trading, clearing and settlement. Using a stylized model of the industry we investigate the incentives to...