Public Provision and Private Incentives

This paper surveys classical and modern arguments for public production and provision of goods. It reviews the conventional case for public production under conditions of increasing returns and discusses the modifications that have to be made if public production involves a cost inefficiency. It then discusses the causes behind a possible cost inefficiency, such as the difficulty of designing good incentive schemes in agencies with multiple and complex objectives. An alternative to designing better incentives in the public sector is that of contracting out to private firms, and the conditions favourable to this alternative are also discussed.

Export Premia and Sub-Contracting Discount. Passive Strategies and performance in Domestic and Foreign Markets

This paper contributes to the literature on firms’ productivity and exporting decisions by analysing the role played by organizational choice aspects. Rather than setting up a vertically integrated structure, manufacturers may act as subcontractors in both domestic and foreign markets, and produce to satisfy the requirements of other firms. A very simple model is presented where the most productive firms self-select into exporting, while the least productive ones work as sub-contractors serving the domestic market only. These predictions are tested using a sample of Italian firms observed in the 1998-2003 period. The results of our estimates highlight a ranking of firms consistent with a priori expectations, and provide a clear indication that passive exporters (i.e. using sub-contracting in foreign markets)display lower TFP values as compared to direct exporters. Moreover, only the latter category exhibits higher pre-entry productivity levels and growth rates as well as higher post-entry TFP growth rates. Such findings are consistent with both the self-selection hypothesis and the learning by exporting explanation.Export Premia, Sub-contracting Discount, Total Factor Productivity, Firm Heterogeneity

Coal markets and hierarchies

Errata sheet inserted.In "Markets and Hierarchies" (1975) Oliver Williamson has developed a heuristic framework (Organization Failures Framework = OFF) to attack the issue of institutional borderlines between markets and firms. Below we discuss this concept and apply it to local coal markets. Differences in larger domestic and international coal markets then cast some doubts on the practical usefulness of the approach

The Institutions of Federalism: Toward an Analytical Framework

Mature federations have relatively transparent delineations of authority among levels of government; subnational governments enjoy considerable autonomy in their expenditure, revenue, and debt policies. In other countries, problems of soft budget constraints, bailouts, and fiscal and financial instability demonstrate the difficulties of institutional design in a federation. This paper outlines an analytical framework within which interjurisdictional spillovers may create incentives for higher-level governments to intervene in the control and financing of lower-level governments (bailouts). This framework helps to identify directions for theoretical and empirical research that can illuminate important features of observed institutions and guide policy analysis.federalism, bailouts, soft budget constraint, externalities

Study on major legal issues of carriage of dangerous goods at sea

This dissertation focuses on major legal issues of carriage of dangerous goods by sea. Due to the particular features and high risk of dangerous goods during the process of transportation, dangerous goods transportation by sea has always caught the public eye. Nowadays, due to technological development and increasing volume of dangerous goods trade, concerns relating to its legal issues have been seen as a critical matter in the ship-ping industry. This study discusses the present situation and the trend of maritime dangerous goods legislation first, and then, looks into the various definitions of dangerous goods in differ-ent conventions and regulations. The argument largely focuses on the critical issue that there are no unified definitions across various laws. Therefore, this research will exam-ine a definition of dangerous goods in order to analyze the major legal issues of carriage of dangerous goods by sea. In regards to legal issues of shipper and carrier, the thesis focuses on their qualification, rights, obligations and liabilities respectively. By comparing the differences among four regulations, namely, Hague Rules, Hamburg Rules, Rotterdam Rules and China Mari-time Code (and any applicable Chinese national laws), clarification of the foregoing top-ic is presented. The study concludes the need of amendment of China Maritime Code in terms of carriage of dangerous goods by sea

Managerial decisions to recover from Covid-19 disruption: A multi-objective optimization approach applied to public transport operators

The resilience of transport systems, facing natural or man-made disruptions, has been widely discussed in literature in terms of recovery capabilities concerning infrastructures, suggesting solutions to provide users an acceptable level of service along the interrupted network. However, in the context of the Covid-19 outbreak, the disruption has stressed the resilience of transport systems not on the supply side but rather at organizational level for transport service providers. Indeed, the sudden and drastic decrease in users due to the restrictions imposed by governments to limit the pandemic spread has implicated severe economic consequences in the running of transport companies. In this paper, attention has been focused on the public transport sector to analyse the effects of different initiatives, which companies could undertake in response to the demand shock caused by the Covid-19 emergency. Notably, an optimization procedure has been developed with the aim of determining feasible Pareto-front solutions, which correspond to trade-off conditions for the concurrent maximization of the company profit and the minimization of outsourcing services. The time span necessary to implement the examined recovery measures has been considered together with the limitation to appropriate threshold values for the main cost and income items influencing the company operations management. The proposed approach has been applied to the case study of an Italian public transport company to appraise different post-Covid-19 resilience strategies

Ex Tempore Contracting

This Article argues that a cornerstone assumption of contemporary contracts scholarship is misleading and limited. Leading academic commentary explicitly assumes that contractual responsibilities are determined in the following way: parties determine many of their duties ex ante, by specifying terms at the time of contract formation, and leave the rest of the terms vague, for a court to specify ex post if any should prove important. This ex ante / ex post dichotomy is the guiding framework in attempts to understand contract design and interpretation. For example, parties use terms like “merchantable” quality when the cost of being more specific up front is higher than the cost of relying on a court to later elaborate its meaning. Yet this dichotomy obscures a third, “real-time” approach to contracting: parties frequently leave terms unspecified and delegate ongoing determination to someone other than a court. This Article identifies this phenomenon, which can be called—as opposed to ex ante and ex post—“ex tempore” contracting. Using a unique cache of data only recently made available, this Article explores ex tempore contracting through a novel dispute management system now prevalent in the construction industry called a “dispute board.” These expert panels radically reduce the cost and frequency of litigation by determining the parties’ responsibilities whenever the parties wish, including in the course of performance. Ex tempore contracting is not merely a dispute resolution system for the construction industry. Ex tempore contracting is also essential to the massive financial derivatives market and countless other transactions. This Article develops important insights for judicial interpretation of contracts and the scholarly analysis thereof. For example, the possibility of ex tempore contracting casts doubt on the wisdom of information-forcing penalty defaults and urges courts to enforce ex tempore contracting clauses much more often than they currently do