We consider competitive markets with asymmetric information. We intro- duce a notion of equilibrium that allows individuals to act strategically both as buyers and as sellers, and we prove that equilibria exist.

We use a unique dataset to estimate the hedonic price function for the Italian red wine sold on the Italian market in the period 2006-2008.

Economies with asymmetric information are encompassed by an extension of the model of general competitive equilibrium that does not require an explicit modeling of private information. Sellers have discretion over deliveries on contracts; this is in common with economies with default, incomplete...

This article aims at analyzing the link between subsidiaries' cap- ital structure and taxation in Europe. First we introduce a trade- off model, which studies a MNCs' financial strategy and shows how debt policy allows multinational groups to shift profits from low-tax to high-tax jurisdictions....

Does management consulting facilitate the access to credit for start-ups? This paper tries to answer the question by developing a moral hazard framework where a firm applies for a bank loan to implement a risky project. Conditions are derived under which credit is granted only if the bank hires...

In this paper we consider a moral hazard problem between a creditworthy firm which needs funding and a bank. We first study under which conditions the firm does not obtain the loan. We then determine whether and how the intervention of an external financial institution can facilitate the access...

An important issue in neo-Kaleckian growth theory is whether higher employment and growth can be promoted by increasing the wage share or whether growth and equity are conflicting objectives. It has been argued that profit-led growth regimes are more likely in an open economy, at least in the...

We investigate the role of workers’ and managerial experience as a determinant of firm innovation and productivity in a sample of about ten thousands Italian firms. A high share of temporary – thus un-experienced - workers is associated to low innovation and productivity. The effect of...

The problem of absenteeism has taken the centre of the stage of public attention when Renato Brunetta, the Public Employment Secretary, launched a reform of the public sector which started with a law on absenteeism. After the law was passed, the first evidence collected showed an average drop of...

We derive the distribution of a proxy for the risk tolerance in a representative sample of US households. Our measure is deduced from the willingness to bear risk as indicated by the variance of returns of each household’s observed portfolio. The estimates, obtained assuming constraints on...