Is acting prosocially beneficial for the credit market?

This article argues that behaving prosocially implies more transparent information during the negotiation process of a financial contract and more cooperation among the parties to respect the terms of the contract. For this reason this work considers interest rate on loans and insolvency rate functions of prosocial behaviour along with the traditional socio-economic and financial collaterals. The context of study is Italy and the analysis is developed at a cross-regional level. We collect data from the two reports on “Relatives and Safety Net” produced by the Italian Centre Bureau of Statistics (ISTAT) in 1998 and 2003 and from the reports on “Regional Economics” produced by the Bank of Italy in the same years. A two-period panel model shows two interesting outcomes. Firstly, regions with a higher proportion of prosocial individuals report lower interest rates on loans and insolvency rates. Secondly, when we include the efficiency of legal enforcement, evidence supports the idea that a more efficient legal framework can act as a more reliable transmission mechanism of institutional norms and facilitate the internalisation of social norms

Polar Varieties and Efficient Real Elimination

Let $S_0$ be a smooth and compact real variety given by a reduced regular sequence of polynomials $f_1, ..., f_p$. This paper is devoted to the algorithmic problem of finding {\em efficiently} a representative point for each connected component of $S_0$ . For this purpose we exhibit explicit polynomial equations that describe the generic polar varieties of $S_0$. This leads to a procedure which solves our algorithmic problem in time that is polynomial in the (extrinsic) description length of the input equations $f_1, >..., f_p$ and in a suitably introduced, intrinsic geometric parameter, called the {\em degree} of the real interpretation of the given equation system $f_1, >..., f_p$.Comment: 32 page

Polar Varieties, Real Equation Solving and Data-Structures: The hypersurface case

In this paper we apply for the first time a new method for multivariate equation solving which was developed in \cite{gh1}, \cite{gh2}, \cite{gh3} for complex root determination to the {\em real} case. Our main result concerns the problem of finding at least one representative point for each connected component of a real compact and smooth hypersurface. The basic algorithm of \cite{gh1}, \cite{gh2}, \cite{gh3} yields a new method for symbolically solving zero-dimensional polynomial equation systems over the complex numbers. One feature of central importance of this algorithm is the use of a problem--adapted data type represented by the data structures arithmetic network and straight-line program (arithmetic circuit). The algorithm finds the complex solutions of any affine zero-dimensional equation system in non-uniform sequential time that is {\em polynomial} in the length of the input (given in straight--line program representation) and an adequately defined {\em geometric degree of the equation system}. Replacing the notion of geometric degree of the given polynomial equation system by a suitably defined {\em real (or complex) degree} of certain polar varieties associated to the input equation of the real hypersurface under consideration, we are able to find for each connected component of the hypersurface a representative point (this point will be given in a suitable encoding). The input equation is supposed to be given by a straight-line program and the (sequential time) complexity of the algorithm is polynomial in the input length and the degree of the polar varieties mentioned above.Comment: Late

Polar Varieties and Efficient Real Equation Solving: The Hypersurface Case

The objective of this paper is to show how the recently proposed method by Giusti, Heintz, Morais, Morgenstern, Pardo \cite{gihemorpar} can be applied to a case of real polynomial equation solving. Our main result concerns the problem of finding one representative point for each connected component of a real bounded smooth hypersurface. The algorithm in \cite{gihemorpar} yields a method for symbolically solving a zero-dimensional polynomial equation system in the affine (and toric) case. Its main feature is the use of adapted data structure: Arithmetical networks and straight-line programs. The algorithm solves any affine zero-dimensional equation system in non-uniform sequential time that is polynomial in the length of the input description and an adequately defined {\em affine degree} of the equation system. Replacing the affine degree of the equation system by a suitably defined {\em real degree} of certain polar varieties associated to the input equation, which describes the hypersurface under consideration, and using straight-line program codification of the input and intermediate results, we obtain a method for the problem introduced above that is polynomial in the input length and the real degree.Comment: Late

SMEs’ growth under financing constraints and banking markets integration in the euro area

We explore the impact of financing constraints and the role of banking markets integration on SMEs’ growth. The data are drawn from the ECB/SAFE survey on SMEs’ access to finance aggregated at country level for the largest 11 euro-area countries over 2009-2015. Our findings suggest that financing constraints hamper SMEs’ growth and that the effect is stronger for perceived, rather than actual, financing constraints. On the other hand, increased banking market integration in the euro area appears to foster SMEs’ growth. Furthermore, we find that the reduction in financing constraints is crucial in the transmission channel from banking markets integration to growth. This effect appears significantly stronger when integration is measured by the intensity of cross-border lending than through convergence in interest rates to loans to non-financial corporations

Constraints to the sustainability of a ‘systematised’ approach to livestock marketing amongst smallholder cattle producers in South Africa

Commercialization of smallholder agriculture in South Africa is underpinned by reforms to improve livestock off-take in communal areas and engage smallholder farmers with formal markets. To achieve this, Custom Feeding Programmes (CFPs) were established to improve the condition of communal cattle prior to their sale into formal markets and to ‘systematise’ the informal marketing of cattle in communal areas by enabling participants to achieve higher informal market prices. We evaluate the sustainability of eight CFPs located in Eastern Cape Province in terms of their ability to add value to smallholder cattle production and encourage market participation. Communities with CFPs achieved a 16.6% mean cattle off-take rate, substantially higher than in most communal systems. Furthermore, cattle sold through CFPs attained a 17% higher mean selling price than those sold through other marketing channels. However, these benefits were mainly realized by better-off farmers with larger cattle herds and greater ability to transport animals to and from CFPs. More marginalized farmers, particularly women, had low participation. CFPs also face challenges to their sustainability, including inconsistent feed and water supplies, poor infrastructure and high staff turnover. Key to enhancing participation in CFPs, will be improving the way they are supported and embedded within communities

Impact of irreversibility and uncertainty on the timing of infrastructure projects

This paper argues that because of the irreversibility and uncertainty associated with Build - Operate - Transfer (BOT) infrastructure projects, their financial evaluation should also routinely include the determination of the value of the option to defer the construction start-up. This ensures that project viability is comprehensively assessed before any revenue or loan guarantees are considered by project sponsors to support the project. This paper shows that the framework can be used even in the context of the intuitive binomial lattice model. This requires estimating volatility directly from the evolution of the net operating income while accounting for the correlation between the revenue and costs functions. This approach ensures that the uncertainties usually associated with toll revenues, in particular, are thoroughly investigated and their impact on project viability is thoroughly assessed. This paper illustrates the usefulness of the framework with data from an actual (BOT) toll road project. The results show that by postponing the project for a couple of years the project turns out to be viable, whereas it was not without the deferral. The evaluation approach proposed therefore provides a better framework for determining when and the extent of government financial support, if any, that may be needed to support a BOT project on the basis of project economics. The analysis may also be applicable to private sector investment projects, which are characterized by irreversibility and a high rate of uncertainty