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...

This paper analyzes the relationships between the degree of decentralization of public policy and the emergence of horizontal strategic interactions. We analyze the structural funds allocation process in determining how the structure of governance of cohesion policy a ects the development of...

Blockchain technology is firmly established in the public awareness as a revolutionary new technology underpinning cryptocurrency. However, its potential applications can be found across sectors and industries in providing a novel way of producing coordination necessary to transact online,...

We study a credence goods problem - that is, a moral hazard problem with non-contractible outcome - where altruistic experts (the agents) care both about their income and the utility of consumers (the principals). Experts' preferences over income and their consumers' utility are convex, such...

A loss averse buyer and seller face an uncertain environment. Should they write a long-term contract or wait until the state of the world has realized? I show that simple long-term contracts perform better than insinuated in Herweg and Schmidt (2015), even though loss aversion makes...

A loss-averse buyer and seller face an uncertain environment. Should they write a long-term contract or wait until the state of the world is realized? I show that simple long-term contracts perform better than insinuated in Herweg and Schmidt (2015), even though loss aversion makes renegotiation...

In this paper we study how the determinants of regional commuting in Italy have evolved in the past fifteen years. Using labour force data from 1992 to 2008 we estimate a model where the probability of commuting is regressed on a wide set of individual, job, firm and regional characteristics....

The aim of the paper is to present a comparative analysis of the diffusion of ?flexible contractual arrangements' (FCA) across the European Union (EU). The homonymous FCA Composite Indicator (CI) is calculated for all 200 NUTS II-level regions of France, Germany, the UK, Denmark, Sweden,...

Firms provide substantial insurance against wage fluctuations and job loss. This paper studies how the interaction between shock size and persistence affects the firm’s ability to insure workers against idiosyncratic firm-level shocks. Using linked employer-employee data from Germany, I find...

It is widely recognized that most economic activities show a tendency to agglomerate in space and, therefore, economic interactions among firms are likely to be influenced by their geographical proximity. Recently, the literature (Boschma, 2005) has remarked that other dimensions of proximity...