This paper compares benefits and costs related to hierarchical and decentralized organizations in an agency framework. We show that the relative efficiency of hierarchy diminishes in contexts with asymmetric information. When effort is not observable, performance-related pay is required in order...

Many empirical studies have analysed the convergence of the Italian regions, but no evidence is provided on the causes of differences in productivity levels. Moving from a recent approach focusing on differences in levels across countries, rather than in growth rates (Hall - Jones 1999), the...

When Court enforcement is excessively difficult or costly, agents are often able to create «endogenous enforcement mechanisms», that is, to design agreements so that each party finds it optimal to carry them out (self-enforcing implicit contracts), thanks to the threat of sanctions affecting...

The Italian employment protection legislation was modified in 1990 making more costly for small firms to dismiss employees. Using a difference-in-differences estimator to compare absenteeism rates in small and large firms we find a strong increase of shirking in small firms.

We analyze consumers’ reactions to negative information on product quality using daily scanner data at item level from a well-known supermarket chain. We focus on a fraud that in 2008 has involved a number of Italian leading firms in the cheese sector. Exploiting the fact that only some brands...

In questo lavoro si analizza l’efficacia dei corsi a livello pre-universitari diretti a colmare eventuali lacune nelle competenze di base degli studenti. La nostra analisi riguarda gli effetti prodotti da un progetto che all’inizio dell’anno accademico 2008-09 ha offerto agli studenti...

We analyse peer effects among students of a middle-sized Italian public university. We explain students' average grade in exams passed during their Second Level Degree course on the basis of their pre-determined measures of abilities, personal characteristics and peer group abilities. Thanks to...

In this paper we analyse how the absence behaviour of Italian public sector employees has been affected by a law, passed in June 2008, reducing sick leave compensation and increasing monitoring intensity. We use micro-data on a sample of about 860 workers, employed at an Italian public...

A large body of literature considers the advantages of using informal networks to match workers to jobs. However, family ties may interfere with a genuine process of worker selection, favoring people with connections over more talented workers. We offer a simple model of favoritism to explain...

In this paper we carry out an evaluation of the effectiveness of monetary incentives in enhancing student performance using a randomized experiment involving undergraduate students enrolled at a Southern Italian University. Students participating at the experiment were assigned to three...