A Theory of Firm Decline

We study the problem of an investor that buys an equity stake in an entrepreneurial venture, under the assumption that the former cannot monitor the latter’s operations. The dynamics implied by the optimal incentive scheme is rich andquite different from that induced by other models of repeated moral hazard. In particular, our framework generates a rationale for firm decline. As young firms accumulate capital, the claims of both investor (outside equity) and entrepreneur (inside equity) increase. At some juncture, however, even as the latter keeps on growing, capital and firm value start declining and so does the value of outside equity. The reason is that incentive provision becomes costlier as inside equity grows. In turn, this leads to a decline in the constrained–efficient level of effort and therefore to a drop in the return to investment. In the long run, the entrepreneur gains control of all cash–flow rights and the capital stock converges to a constant value.Principal–Agent, Moral Hazard, Hidden Action, Incentives, Firm Dynamics.

Religione e politica nel lungo Ottocento. Nuovi scenari interpretativi

Il volume accoglie i contributi di studiosi di storia del pensiero politico, tesi ad intraprendere nuovi sentieri di ricerca e a individuare nuove connessioni tra la riflessione politica e quella religiosa in alcuni protagonisti della storia politica italiana ed europea del “lungo” Ottocento, evidenziandone i tratti innovativi nei contesti storici, sociali e culturali di riferimento

Coherent transport structures in magnetized plasmas II: Numerical results

In a pair of linked articles (called Article I and II respectively) we apply the concept of Lagrangian Coherent Structures borrowed from the study of Dynamical Systems to magnetic field configurations in order to separate regions where field lines have different kind of behavior. In the present article, article II, by means of a numerical procedure we investigate the Lagrangian Coherent Structures in the case of a two-dimensional magnetic configuration with two island chains that are generated by magnetic reconnection and evolve nonlinearly in time. The comparison with previous results, obtained by assuming a fixed magnetic field configuration, allows us to explore the dependence of transport barriers on the particle velocity

Coherent transport structures in magnetized plasmas, I : Theory

In a pair of linked articles (called Article I and II respectively) we apply the concept of Lagrangian Coherent Structures (LCSs) borrowed from the study of Dynamical Systems to magnetic field configurations in order to separate regions where field lines have different kind of behaviour. In the present article, article I, after recalling the definition and the properties of the LCSs, we show how this conceptual framework can be applied to the study of particle transport in a magnetized plasma. Futhermore we introduce a simplified model that allows us to consider explicitly the case where the magnetic configuration evolves in time on timescales comparable to the particle transit time through the configuration. In contrast with previous works on this topic, this analysis requires that a system that is aperiodic in time be investigated. In this case the Poincar\'e map technique cannot be applied and LCSs remain the only viable tool

Congenital rhabdomyosarcoma: a different clinical presentation in two cases

Background: Rhabdomyosarcoma (RMS), one of the most common soft tissue sarcomas of childhood, is very rare in the neonatal period (0.4-2% of cases). In order to gain a deeper understanding of this disease at such age, patient and tumor features, as well as treatment modality and outcome need to be reported. Case presentation: We describe two cases with congenital RMS treated at Bambino Gesù Children's Hospital between 2000 and 2016. They represent only 2.24% of all RMS patients diagnosed during that period in our Institution; this data is in agreement with the incidence reported in the literature. They reflect the two different clinical forms in which the disease may manifest itself. One patient, with the alveolar subtype (positive for specific PAX3-FOXO1 fusion transcript) and disseminated disease, had a fatal outcome with central nervous system (CNS) progression despite conventional and high dose chemotherapy. The other child, with the localized embryonal subtype, was treated successfully with conservative surgery and conventional chemotherapy, including prolonged maintenance therapy. He is disease free at 7 years of follow-up. Conclusions: RMS can also be diagnosed during the neonatal period. Given the young age, disease management is often challenging, and especially for the alveolar subtype, the outcome is dismal despite intensified multimodality therapy. In fact, it characteristically manifests with multiple subcutaneous nodules and progression most commonly occurs in the CNS (Rodriguez-Galindo et al., Cancer 92(6):1613-20, 2001). In this context, CNS prophylaxis could play a role in preventing leptomeningeal dissemination, and molecular studies can allow a deeper tumor characterization, treatment stratification and identification of new potential therapeutic targets

An Update on Circular RNA in Pediatric Cancers

Circular RNAs (circRNAs) are a class of single-stranded closed noncoding RNA molecules which are formed as a result of reverse splicing of mRNAs. Despite their relative abundance, only recently there appeared an increased interest in the understanding of their regulatory importance. Among their most relevant characteristics are high stability, abundance and evolutionary conservation among species. CircRNAs are implicated in several cellular functions, ranging from miRNA and protein sponges to transcriptional modulation and splicing. Additionally, circRNAs’ aberrant expression in pathological conditions is bringing to light their possible use as diagnostic and prognostic biomarkers. Their use as indicator molecules of pathological changes is also supported by their peculiar covalent closed cyclic structure which bestows resistance to RNases. Their regulatory role in cancer pathogenesis and metastasis is supported by studies involving human tumors that have investigated different expression profiles of these molecules. As endogenous competitive RNA, circRNAs can regulate tumor proliferation and invasion and they arouse great consideration as potential therapeutic biomarkers and targets for cancer. In this review, we describe the most recent findings on circRNAs in the most common pediatric solid cancers (such as brain tumors, neuroblastomas, and sarcomas) and in more rare ones (such as Wilms tumors, hepatoblastomas, and retinoblastomas)

Integration contracts and asset complementarity: Theory and evidence from US data

Firms sign integration contracts to increase profits from trade and competition with third parties. An integration contract can improve complementarity among partners (productivity effect) and increase their power in the marketplace (strategic effect). We investigate three bilateral contracts: M&A, Minority Stake purchase, and Joint Venture. By using a cooperative game approach, we characterize quite general profitability conditions. To estimate the validity of those conditions, we adopt a novel complementarity index. It shows that for any kind of contract, a significant share of the integration profits is due to the “strategic effect” of increased market power. Productivity gains are relatively less important, and in some cases they are negative

Voting chances instead of voting weights

We study political distortions that emerge in situations where agents’ political power is disproportionate with respect to their economic power. We use the Shapley value to evaluate both the economic and the political power. We show that usual weighted majority voting cannot prevent political distortions from emerging in a huge mass of situations. Distortions are less severe if partners can leave the union at low cost. We propose an alternative voting method based on random assignments of voting rights. Agents are given chances to vote instead of weights. If chances are computed according to a specific formula, no political distortion occurs. As an application, we analyze the rotation voting system recently adopted by the European Central Bank. We find that this system yields an enormous amount of political distortion. Then we compute the voting chances that should be assigned to Eurozone countries in order to eliminate it