Reshaping hegemony: societal interests and political power in the European post‐crisis financial governance

A Neo‐Gramscian approach to the analysis of EU integration and policy-making. Mapping the participatory channels in the EU economic and financial policy-making. The formation of the European post‐crisis regulatory agenda. The reform of Basel II and the Capital Requirements’ package. The reform of the Lamfalussy process and the European supervision of the financial markets. The Single Supervisory Mechanism and the path towards the Banking Union. The debate on the Banking Structural Reform: a view on the on going negotiations.A Neo‐Gramscian approach to the analysis of EU integration and policy-making. Mapping the participatory channels in the EU economic and financial policy-making. The formation of the European post‐crisis regulatory agenda. The reform of Basel II and the Capital Requirements’ package. The reform of the Lamfalussy process and the European supervision of the financial markets. The Single Supervisory Mechanism and the path towards the Banking Union. The debate on the Banking Structural Reform: a view on the on going negotiations.LUISS PhD Thesi

ADR e impresa

Over recent years there has been an increasing use of alternative dispute resolution methods in Italy, the so-called ADR methods. The crisis of the Italian justice system, along with the persistent economic and liquidity crisis, has led the Italian legislature to identify and regulate new dispute resolution tools aimed at reducing the litigation rate and length of judicial proceedings. The Italian legislature has also intervened in several areas of law, promoting alternative dispute resolution methods not only in civil and commercial matters, but also in many other fields in which individuals and enterprises operate. Italian businesses, in particular during the current economic crisis, could benefit from the many advantages related to the use of alternative dispute resolution methods. In any case, in the event of a dispute, they should assess the costs and benefits of ADR, comparing the various ADR methods with each other and with litigation. Having said that, the first chapter analyses the main alternative dispute resolution tools, also distinguishing whether or not they end with a binding decision. The second chapter examines the advantages, but also the disadvantages, that enterprises may experience by using ADR methods, as the case may be. The third and fourth chapters analyse the ADR methods related to disputes in civil and commercial matters. These chapters focus in particular on lawyer-assisted negotiation, mediation and arbitration in the light of recent regulatory reforms and case law. The fifth chapter examines the ADR tools that businesses can use in specific fields, notably in corporate, banking, financial and labour matters.Over recent years there has been an increasing use of alternative dispute resolution methods in Italy, the so-called ADR methods. The crisis of the Italian justice system, along with the persistent economic and liquidity crisis, has led the Italian legislature to identify and regulate new dispute resolution tools aimed at reducing the litigation rate and length of judicial proceedings. The Italian legislature has also intervened in several areas of law, promoting alternative dispute resolution methods not only in civil and commercial matters, but also in many other fields in which individuals and enterprises operate. Italian businesses, in particular during the current economic crisis, could benefit from the many advantages related to the use of alternative dispute resolution methods. In any case, in the event of a dispute, they should assess the costs and benefits of ADR, comparing the various ADR methods with each other and with litigation. Having said that, the first chapter analyses the main alternative dispute resolution tools, also distinguishing whether or not they end with a binding decision. The second chapter examines the advantages, but also the disadvantages, that enterprises may experience by using ADR methods, as the case may be. The third and fourth chapters analyse the ADR methods related to disputes in civil and commercial matters. These chapters focus in particular on lawyer-assisted negotiation, mediation and arbitration in the light of recent regulatory reforms and case law. The fifth chapter examines the ADR tools that businesses can use in specific fields, notably in corporate, banking, financial and labour matters.LUISS PhD Thesi

A social choice approach to theorizing justice

Mainstream theorizing of justice, initiated by John Rawls seminal work A Theory of Justice1, has recently come under criticism for its ability to devise satisfying answers to these questions. Within a debate on how to conceptualize ideal and non-ideal theorizing of justice, a number of theorists have pointed out a serious gap between contemporary theorizing of justice and actual problems. In response, those who believe that theorizing justice should address real problems argue for ways to breach the gap, while others have retreated to their ivory towers. Methodological chapters containing empirical and theoretical assumptions as well as issues of implementation, feasibility and accessibility are now considered more seriously. The debate has resulted in important insights for improving the ability of theorizing to relate to actual problems. Nevertheless, this thesis argues that theorizing justice in the Rawlsian framework is inherently flawed in guiding action in real world circumstances. Due to its two stage method consisting in first theorizing ideal principles that govern the perfectly just society, and then implementing them in actual circumstances, the framework is unable to incorporate an essential aspect of real world circumstances. Namely, that there are equally valid reasons for upholding different principles of justice and equally valid reasons for different ways of implementing them in particular contexts. This failure has major implications for the capacity of theorizing to guide action in real world circumstances. The two stage method is either insufficient in guiding action or detrimental by making false judgments. Incorporating disagreement into the theorizing of actual injustices, however, implies a different idea of justice, which I argue is best comprehended by a social choice approach. The critical part of this dissertation argues against Rawls' two stage method due to the problems arising from the fact of pervasive disagreement. The constructive part develops Amartya Sen's social choice approach to justice as a method that can deliver concrete judgments in comparing policies. I take up both tasks in Chapter 2. In Chapter 3 and Chapter 4, I respectively analyze two cases of policy choice in different domains of justice: the first regards implementing global taxes on natural resources; the second, reforming the European Union asylum policy. In Chapter 5, I conclude by emphasizing the main points of the social choice approach that I develop.Mainstream theorizing of justice, initiated by John Rawls seminal work A Theory of Justice1, has recently come under criticism for its ability to devise satisfying answers to these questions. Within a debate on how to conceptualize ideal and non-ideal theorizing of justice, a number of theorists have pointed out a serious gap between contemporary theorizing of justice and actual problems. In response, those who believe that theorizing justice should address real problems argue for ways to breach the gap, while others have retreated to their ivory towers. Methodological chapters containing empirical and theoretical assumptions as well as issues of implementation, feasibility and accessibility are now considered more seriously. The debate has resulted in important insights for improving the ability of theorizing to relate to actual problems. Nevertheless, this thesis argues that theorizing justice in the Rawlsian framework is inherently flawed in guiding action in real world circumstances. Due to its two stage method consisting in first theorizing ideal principles that govern the perfectly just society, and then implementing them in actual circumstances, the framework is unable to incorporate an essential aspect of real world circumstances. Namely, that there are equally valid reasons for upholding different principles of justice and equally valid reasons for different ways of implementing them in particular contexts. This failure has major implications for the capacity of theorizing to guide action in real world circumstances. The two stage method is either insufficient in guiding action or detrimental by making false judgments. Incorporating disagreement into the theorizing of actual injustices, however, implies a different idea of justice, which I argue is best comprehended by a social choice approach. The critical part of this dissertation argues against Rawls' two stage method due to the problems arising from the fact of pervasive disagreement. The constructive part develops Amartya Sen's social choice approach to justice as a method that can deliver concrete judgments in comparing policies. I take up both tasks in Chapter 2. In Chapter 3 and Chapter 4, I respectively analyze two cases of policy choice in different domains of justice: the first regards implementing global taxes on natural resources; the second, reforming the European Union asylum policy. In Chapter 5, I conclude by emphasizing the main points of the social choice approach that I develop.LUISS PhD Thesi

A new look on family business internationalization: noneconomic goals in family firms and strategic decisions

Family firms are defined as those organizations owned and usually also managed by a controlling family (Shanker and Astrachan, 1996; Lansberg, 1999). The importance of family firms in developed and emerging markets as well as among top MNEs is progressively growing (Birley, 2001; Carr and Bateman, 2009). Accordingly, the internationalization of family business is receiving increasing attention by scholars and developing into a significant research area (Pukall and Calabrò, 2014). Prior research has demonstrated that when family firms go international they show a peculiar behavior compared to firms with different ownership structures and related to the distinctive character of the family business (Thomas and Graves, 2005; Fernandez and Nieto, 2006; Claver et al., 2009): given the duality of economic and non-economic goals, a growing body of research has demonstrated that family involvement in ownership and/or management deeply affects firms’ strategic decisions, including internationalization. Nevertheless this field of inquiry is still in its infancy and the distinctive features of family firms’ international behavior have been only partially addressed (Kontinen and Ojala, 2010). In order to contribute to international business and family firms literature, the dissertation is a collection of three studies organized as follows. The first study is a theoretical and empirical investigation on the relationship about different family ownership structures and entry modes. To develop this study I cooperated with “Università Politecnica delle Marche” and used their dataset on Italian medium-sized family firms. Relying on a sample of 368 foreign market entries related to 204 Italian medium-sized family firms, I show that different types of ownership structures within family firms differently influence entry modes. I also provide evidence that non-family managers moderate the relation between family ownership and entry modes strategic decisions. Whereas prior studies have focused on the relationship between family involvement in the ownership and/or management influences the degree of internationalization, this study highlights how family firms enter into foreign market and how differences within the family ownership structure may differently drive strategic decisions. The second study focuses on family leaders’ strategic decision making and the subsidiary ownership policy i.e. the choice between forming a Joint Venture (JV) or setting up a Wholly-Owned Subsidiary (WOS). This study – developed in cooperation with Bocconi University – relies on a sample of 3,939 subsidiary ownership policies run by 586 family-controlled firms with more than 50 million of euros of revenues. I show that family leaders are either more or less willing to preserve their Socioemotional Wealth (SEW) – entering the foreign market by a wholly owned subsidiary – in relation to the level of performance hazard, the identity fit between the family and the business and the cultural distance between the home and the host country. This study contributes to the growing debate on the contextual nature of SEW preservation logic by theoretically and empirically challenging the prevalent notion that major managerial decision in family-controlled firms are driven by SEW preservation goals, even if doing so might entail higher financial risks or lower performance (Gomez-Mejia et al., 2007; 2010). Finally, the third study is a conceptual investigation about succession in family firms. Prior research demonstrated that succession is directly related to internationalization according to the idea that the involvement of new generation in the ownership and/or management often stimulates and fosters internationalization (Fernández and Nieto, 2005; Menéndez and Requejo, 2005). Nevertheless only 30% of family firms is thought to survive the leadership passage to the second generation and only 10% makes it to the third generation (Beckhard and Dyer, 1983). Thus the succession success is a high critical and fundamental step for the firm survival as well as the survival of the family within the firm. This study theoretically investigates how agency problems occurring between the predecessor and successors during succession – in terms of misalignments and goal divergence – may affect the succession success. More precisely I split the succession process into three different stages and in each stage I analyze how the different way the decision-making power is shared between the predecessor and successor moderates the relation between agency problems and succession success.Family firms are defined as those organizations owned and usually also managed by a controlling family (Shanker and Astrachan, 1996; Lansberg, 1999). The importance of family firms in developed and emerging markets as well as among top MNEs is progressively growing (Birley, 2001; Carr and Bateman, 2009). Accordingly, the internationalization of family business is receiving increasing attention by scholars and developing into a significant research area (Pukall and Calabrò, 2014). Prior research has demonstrated that when family firms go international they show a peculiar behavior compared to firms with different ownership structures and related to the distinctive character of the family business (Thomas and Graves, 2005; Fernandez and Nieto, 2006; Claver et al., 2009): given the duality of economic and non-economic goals, a growing body of research has demonstrated that family involvement in ownership and/or management deeply affects firms’ strategic decisions, including internationalization. Nevertheless this field of inquiry is still in its infancy and the distinctive features of family firms’ international behavior have been only partially addressed (Kontinen and Ojala, 2010). In order to contribute to international business and family firms literature, the dissertation is a collection of three studies organized as follows. The first study is a theoretical and empirical investigation on the relationship about different family ownership structures and entry modes. To develop this study I cooperated with “Università Politecnica delle Marche” and used their dataset on Italian medium-sized family firms. Relying on a sample of 368 foreign market entries related to 204 Italian medium-sized family firms, I show that different types of ownership structures within family firms differently influence entry modes. I also provide evidence that non-family managers moderate the relation between family ownership and entry modes strategic decisions. Whereas prior studies have focused on the relationship between family involvement in the ownership and/or management influences the degree of internationalization, this study highlights how family firms enter into foreign market and how differences within the family ownership structure may differently drive strategic decisions. The second study focuses on family leaders’ strategic decision making and the subsidiary ownership policy i.e. the choice between forming a Joint Venture (JV) or setting up a Wholly-Owned Subsidiary (WOS). This study – developed in cooperation with Bocconi University – relies on a sample of 3,939 subsidiary ownership policies run by 586 family-controlled firms with more than 50 million of euros of revenues. I show that family leaders are either more or less willing to preserve their Socioemotional Wealth (SEW) – entering the foreign market by a wholly owned subsidiary – in relation to the level of performance hazard, the identity fit between the family and the business and the cultural distance between the home and the host country. This study contributes to the growing debate on the contextual nature of SEW preservation logic by theoretically and empirically challenging the prevalent notion that major managerial decision in family-controlled firms are driven by SEW preservation goals, even if doing so might entail higher financial risks or lower performance (Gomez-Mejia et al., 2007; 2010). Finally, the third study is a conceptual investigation about succession in family firms. Prior research demonstrated that succession is directly related to internationalization according to the idea that the involvement of new generation in the ownership and/or management often stimulates and fosters internationalization (Fernández and Nieto, 2005; Menéndez and Requejo, 2005). Nevertheless only 30% of family firms is thought to survive the leadership passage to the second generation and only 10% makes it to the third generation (Beckhard and Dyer, 1983). Thus the succession success is a high critical and fundamental step for the firm survival as well as the survival of the family within the firm. This study theoretically investigates how agency problems occurring between the predecessor and successors during succession – in terms of misalignments and goal divergence – may affect the succession success. More precisely I split the succession process into three different stages and in each stage I analyze how the different way the decision-making power is shared between the predecessor and successor moderates the relation between agency problems and succession success.LUISS PhD Thesi

Discrezionalità, lotta alla corruzione e tutela della concorrenza nei contratti pubblici

The focus of this research is the corruption, defined as the abuse of entrusted power for private gain, and its impact on public contracts. The research proposes possible solutions against corruption and describes the role of this phenomenon in Italy. As we know, economically, corruption depletes national wealth. The corruption leads a significant loss in terms of GDP, in terms of missed foreign investment in our country. It implies, furthermore, increasing costs (+40%) of the Great Works with supplementary costs on public budgets (60 billion euro estimated for year), according to the latest Court of Auditors estimates. In the latest report prepared by Transparency International (2015), in which is reported the Corruption Perceptions Index as measure of the perceived levels of public sector corruption worldwide, Italy was at the sixty-second place, along with other countries such as Lesotho, Senegal, South Africa and Montenegro and its score was the worst in European Union, after Bulgaria. The research describes, in detail, the failure of regulation on public contracts sector as a result of corruption’s phenomenon. The democratic system, in the nineties, after the emergence of the corrupt system as called "Tangentopoli", has tried to fight corruption through a process of hyper-regulation. This process didn’t solve the problem of corruption and it has generated inefficiency in the legal system. The Government has reduced the discretion of the public administration by creating contractual models that guarantee the respect of competition between economic operators through automatic and rigid procedures. Conversely, economic studies show that the proper use of discretion brings benefits on public choices and reduces information asymmetries that characterize public-private relationships. The research distinguish “corruption” and “inefficiency” so that it is possible to analyze them starting from different perspectives identifying specific solutions. Corruption is a hidden phenomenon. Inefficiency can be found in the facts and statistics. In Italy people spend more than in other countries for public works, which have longer lead times and that often remain unfulfilled. In the present paper, we argue that it must be achieved a reversal of approach concerning the corruptive phenomena, so that the efficiency's improvement could implies as result the reduction of corruption. The corruption is often hidden behind the inefficiency. Improving the efficiency, lower costs, the shortening of time and ultimately the achievement of the performance, these are the elements on which it will be possible to reduce the corruption impacts. The research shows that if arrangements achieved full efficiency there would be no room for corruption. The contrast against corruption phenomena should be carried out of the race, because it is necessary to pursue primarily the efficiency of public procurement. It’s in the same spirit that seem to go the main provisions of the European directives on public contracts. Finally, the research shows some proposals for achieving efficiency system that also involve the reduction of corruptive episodes, implementing the principles outlined in the "Best Value". The current moment of transposition of European directives is favorable for the adoption of measures needs to ensure greater system efficiency, simplification of procedures, greater discretion for contracting, balanced by the performance control systems, which may have as an indirect effect the reduction of corruption phenomena areas.The focus of this research is the corruption, defined as the abuse of entrusted power for private gain, and its impact on public contracts. The research proposes possible solutions against corruption and describes the role of this phenomenon in Italy. As we know, economically, corruption depletes national wealth. The corruption leads a significant loss in terms of GDP, in terms of missed foreign investment in our country. It implies, furthermore, increasing costs (+40%) of the Great Works with supplementary costs on public budgets (60 billion euro estimated for year), according to the latest Court of Auditors estimates. In the latest report prepared by Transparency International (2015), in which is reported the Corruption Perceptions Index as measure of the perceived levels of public sector corruption worldwide, Italy was at the sixty-second place, along with other countries such as Lesotho, Senegal, South Africa and Montenegro and its score was the worst in European Union, after Bulgaria. The research describes, in detail, the failure of regulation on public contracts sector as a result of corruption’s phenomenon. The democratic system, in the nineties, after the emergence of the corrupt system as called "Tangentopoli", has tried to fight corruption through a process of hyper-regulation. This process didn’t solve the problem of corruption and it has generated inefficiency in the legal system. The Government has reduced the discretion of the public administration by creating contractual models that guarantee the respect of competition between economic operators through automatic and rigid procedures. Conversely, economic studies show that the proper use of discretion brings benefits on public choices and reduces information asymmetries that characterize public-private relationships. The research distinguish “corruption” and “inefficiency” so that it is possible to analyze them starting from different perspectives identifying specific solutions. Corruption is a hidden phenomenon. Inefficiency can be found in the facts and statistics. In Italy people spend more than in other countries for public works, which have longer lead times and that often remain unfulfilled. In the present paper, we argue that it must be achieved a reversal of approach concerning the corruptive phenomena, so that the efficiency's improvement could implies as result the reduction of corruption. The corruption is often hidden behind the inefficiency. Improving the efficiency, lower costs, the shortening of time and ultimately the achievement of the performance, these are the elements on which it will be possible to reduce the corruption impacts. The research shows that if arrangements achieved full efficiency there would be no room for corruption. The contrast against corruption phenomena should be carried out of the race, because it is necessary to pursue primarily the efficiency of public procurement. It’s in the same spirit that seem to go the main provisions of the European directives on public contracts. Finally, the research shows some proposals for achieving efficiency system that also involve the reduction of corruptive episodes, implementing the principles outlined in the "Best Value". The current moment of transposition of European directives is favorable for the adoption of measures needs to ensure greater system efficiency, simplification of procedures, greater discretion for contracting, balanced by the performance control systems, which may have as an indirect effect the reduction of corruption phenomena areas.LUISS PhD Thesi

Il "nuovo" ruolo dell'assemblea nelle società quotate

The evolution of the international scene demonstrates the relevance of the debate regarding the role of shareholders in listed companies. For a long time, all attempts to encourage shareholder activism had been branded as an anachronistic return to the so-called “shareholder democracy”. In recent years, however, the assumption of equivalence between the increase of shareholders’ rights and the reduction of efficiency in the management of a company has been disproven, at least at the legislative level. The development of the Italian legislative framework in the last ten years has actively contributed to the strengthening of the role of shareholders in listed companies. In fact, the Italian legislator has not only transposed the European provisions (Directive 2007/36/EC), which have facilitated the participation of shareholders in general meetings but, in addition, he has prepared a package of substantial competences that provide shareholders with the capability to influence corporate governance of the company and to express “publicly” their dissent against the activity of management, with possible impact on the market value of securities. In the light of the above, it is important to investigate the reasons and contents of the choices of European and national legislators, which (in line with the present trend in the world) have been made to encourage shareholder engagement in order to improve corporate governance of listed companies. Along this line of inquiry, the research project aims to examine the role that shareholders in listed companies have currently taken in Italy, first of all on the basis of the analysis of the positive framework and data available from recent general meetings.The evolution of the international scene demonstrates the relevance of the debate regarding the role of shareholders in listed companies. For a long time, all attempts to encourage shareholder activism had been branded as an anachronistic return to the so-called “shareholder democracy”. In recent years, however, the assumption of equivalence between the increase of shareholders’ rights and the reduction of efficiency in the management of a company has been disproven, at least at the legislative level. The development of the Italian legislative framework in the last ten years has actively contributed to the strengthening of the role of shareholders in listed companies. In fact, the Italian legislator has not only transposed the European provisions (Directive 2007/36/EC), which have facilitated the participation of shareholders in general meetings but, in addition, he has prepared a package of substantial competences that provide shareholders with the capability to influence corporate governance of the company and to express “publicly” their dissent against the activity of management, with possible impact on the market value of securities. In the light of the above, it is important to investigate the reasons and contents of the choices of European and national legislators, which (in line with the present trend in the world) have been made to encourage shareholder engagement in order to improve corporate governance of listed companies. Along this line of inquiry, the research project aims to examine the role that shareholders in listed companies have currently taken in Italy, first of all on the basis of the analysis of the positive framework and data available from recent general meetings.LUISS PhD Thesi

Gli istituti deflattivi del contenzioso tributario e il principio d'indisponibilità dell'obbligazione fiscale

Il concetto d'indisponibilità dell'obbligazione tributaria: contenuti e limiti. L'accertamento con adesione nel quadro degli strumenti deflattivi del contenzioso tributario: il discusso inquadramento teorico dell'istituto tra indisponibilità ed accordo. Le modalità di definizione alternativa delle controversie tributarie: l'impatto della conciliazione e della mediazione sul principio d'indisponibilità.Il concetto d'indisponibilità dell'obbligazione tributaria: contenuti e limiti. L'accertamento con adesione nel quadro degli strumenti deflattivi del contenzioso tributario: il discusso inquadramento teorico dell'istituto tra indisponibilità ed accordo. Le modalità di definizione alternativa delle controversie tributarie: l'impatto della conciliazione e della mediazione sul principio d'indisponibilità.LUISS PhD Thesi

Party patronage in parliament: the Italian experience

Party patronage is a recent notion in the literature. Often confused with clientelism, corruption and other distributive practices, it has to do with the cartel party (ideal) type and the party-state relationships, providing new and alternative resource for the parties. Defined as the power of party to appoint people in public and semi-public life, patronage also occurs in parliamentary arena, far from the governmental sphere within the bureaucracy and the public administration. This dissertation aims at investigating parliamentary patronage as a job distributive process, individuating the factors that shape this exchange relationship between collective and individual patrons and clients. The empirical research focused on the Italian experience finds that parliamentary patronage works both as an organizational and post-electoral resource. From the qualitative survey addressed through conversational interviews to more than sixty parliamentary patrons and organizers in the last two terms, three main trends emerge: when patrons are represented by collective bodies as the parliamentary group, party networks and allegiance matter -though not excessively- in the distribution of patronage resources, but combined with professional criteria, especially at top level; when individual patrons hold internal institutional offices and distribute jobs related to that office, they are likely to look more at personal networks in selecting their ‘clients’; the control function of patronage, stressed in previous studies about the phenomenon, fades making room for organizational and functional patronage.Party patronage is a recent notion in the literature. Often confused with clientelism, corruption and other distributive practices, it has to do with the cartel party (ideal) type and the party-state relationships, providing new and alternative resource for the parties. Defined as the power of party to appoint people in public and semi-public life, patronage also occurs in parliamentary arena, far from the governmental sphere within the bureaucracy and the public administration. This dissertation aims at investigating parliamentary patronage as a job distributive process, individuating the factors that shape this exchange relationship between collective and individual patrons and clients. The empirical research focused on the Italian experience finds that parliamentary patronage works both as an organizational and post-electoral resource. From the qualitative survey addressed through conversational interviews to more than sixty parliamentary patrons and organizers in the last two terms, three main trends emerge: when patrons are represented by collective bodies as the parliamentary group, party networks and allegiance matter -though not excessively- in the distribution of patronage resources, but combined with professional criteria, especially at top level; when individual patrons hold internal institutional offices and distribute jobs related to that office, they are likely to look more at personal networks in selecting their ‘clients’; the control function of patronage, stressed in previous studies about the phenomenon, fades making room for organizational and functional patronage.LUISS PhD Thesi

Quantum tort law: the law of torts in a probabilistic world

Despite the findings of natural scientists and philosophers, the law of torts is still clinging on a strictly deterministic (in the Laplacian sense) idea of the world. Probabilistic considerations are not alien to the legal world, yet they are generally regarded as ad hoc exceptions to handle particularly complex cases. From this perspective, this thesis advocates the need for a theoretical shift. A probabilistic approach to reality should become the norm, whereas determinism should only be considered a heuristic tool when confronted with prima facie deterministic cases. In Chapter II it is shown that a strictly deterministic concept of causation is inadequate to face the intricacies characterizing modern litigation. In fact, the deterministic version of the ‘but for’ test necessarily creates frictions with the kind of evidence produced by modern science. The introduction of a purely probabilistic concept of causality is advocated and a distinction is drawn between the ex-ante and the ex-post probabilistic approach to causation. The former seems to be a better approach for lagged torts, whereas the latter is more appropriate to handle instant torts. Also, it is shown that in a probabilistic world the very concept of harm assumes a different meaning. Building on the new definition of harm introduced in Chapter II, in Chapter III it is suggested that the debate on the goals of tort law should be reconsidered. In a probabilistic world welfare maximization and corrective justice are not mutually exclusive, but must be regarded as necessary complements. In Chapter IV, it is argued that the problems created by a deterministic mindset stretch way beyond the analysis of causation. In fact, a Laplacian (deterministic) view of the world often prevents us from contemplating probabilistic solutions even when deterministic options have failed. From this perspective, Credit Rating Agencies (CRAs) are a perfect example. Both the legal and the economic literature have advanced solutions to improve CRAs incentives to issue accurate ratings. Yet, in most cases, the proposed solutions did not exploit the probabilistic nature of ratings, thus they were not framed exclusively in probabilistic terms. To the contrary, by designing a simple and legally workable strict liability rule it is possible to tie CRAs profits to the quality of their probabilistic predictions. In Chapter V, it is investigated whether the law and economics movement can be considered the answer to the indeterminacy of predictions haunting other sciences. Not surprisingly, the answer to this question is no. Even the extremely simplified world of tort law and economics is dominated by an indeterminacy principle.Despite the findings of natural scientists and philosophers, the law of torts is still clinging on a strictly deterministic (in the Laplacian sense) idea of the world. Probabilistic considerations are not alien to the legal world, yet they are generally regarded as ad hoc exceptions to handle particularly complex cases. From this perspective, this thesis advocates the need for a theoretical shift. A probabilistic approach to reality should become the norm, whereas determinism should only be considered a heuristic tool when confronted with prima facie deterministic cases. In Chapter II it is shown that a strictly deterministic concept of causation is inadequate to face the intricacies characterizing modern litigation. In fact, the deterministic version of the ‘but for’ test necessarily creates frictions with the kind of evidence produced by modern science. The introduction of a purely probabilistic concept of causality is advocated and a distinction is drawn between the ex-ante and the ex-post probabilistic approach to causation. The former seems to be a better approach for lagged torts, whereas the latter is more appropriate to handle instant torts. Also, it is shown that in a probabilistic world the very concept of harm assumes a different meaning. Building on the new definition of harm introduced in Chapter II, in Chapter III it is suggested that the debate on the goals of tort law should be reconsidered. In a probabilistic world welfare maximization and corrective justice are not mutually exclusive, but must be regarded as necessary complements. In Chapter IV, it is argued that the problems created by a deterministic mindset stretch way beyond the analysis of causation. In fact, a Laplacian (deterministic) view of the world often prevents us from contemplating probabilistic solutions even when deterministic options have failed. From this perspective, Credit Rating Agencies (CRAs) are a perfect example. Both the legal and the economic literature have advanced solutions to improve CRAs incentives to issue accurate ratings. Yet, in most cases, the proposed solutions did not exploit the probabilistic nature of ratings, thus they were not framed exclusively in probabilistic terms. To the contrary, by designing a simple and legally workable strict liability rule it is possible to tie CRAs profits to the quality of their probabilistic predictions. In Chapter V, it is investigated whether the law and economics movement can be considered the answer to the indeterminacy of predictions haunting other sciences. Not surprisingly, the answer to this question is no. Even the extremely simplified world of tort law and economics is dominated by an indeterminacy principle.LUISS PhD Thesi

Essays on Applied Economics

It Never Rains But It Pours: weather shocks on sectoral wage in US counties. Does Foreign Aid Fuel Trust?It Never Rains But It Pours: weather shocks on sectoral wage in US counties. Does Foreign Aid Fuel Trust?LUISS PhD Thesi