This paper studies educational choices in a signaling setting in segmented labor markets. We show that in the presence of heterogeneous working ability imperfectly correlated with schooling costs, equilibria characterized by overeducation may arise. The quality of education is crucial in...

This work evaluates whether by rendering more salient to students their own student-identity it is possible to increase their effort and performance in an IQ-test. The idea is based on the assumption that individuals’ behavior is often influenced by cues that work subconsciously and prime them...

We investigate whether the presence of fiscal rules might limit the insurgence of a Political Budget Cycle (PBC) in investment spending at municipal level. Data based on the balance sheets of Italian municipalities are explored for the period 1999-2012. In line with some existing studies, we...

The paper analyzes the characteristics of the supply of higher education in different geographical macroareas using a strategic interaction framework. We investigate the issue of educational quality differentials in a centralized funding system. In the presence of moving costs and asymmetric...

This work analyses the links between credit and labour markets highlighting the influence of credit market inefficiencies on employment. We argue that if banks are not efficient in monitoring the borrowers in the presence of asymmetric information, credit market imperfections have real effects....

State- and Wealth-dependence of individual risk preferences are investigated using Italian panel data. To elicit risk aversion, a social security policy reform occurred in Italy in 2008 is exploited. This law asks private sector employees to invest their accruing severance pay in three...