Wage adjustment by Italian firms: any difference during the crisis? A survey-based analysis

The study analyses wage adjustment by Italian firms on the basis of information collected through a coordinated survey carried out in 17 European countries in two waves (at the beginning of 2008 and in the summer of 2009). The pre-crisis evidence indicates that the degree of wage rigidity is relatively high in Italy: wages remain unchanged on average for about two years, against an average of just over one year in the other countries. Italian firms hardly cut nominal wages, reflecting not only institutional constraints, but also an attempt to avoid a negative impact on their productivity. During the economic recession the firms most severely affected by the fall in demand reduced their costs mainly by adjusting the input of labour (in terms of both employment and hours worked). A higher incidence of skilled and white-collar workers was accompanied by greater recourse to strategies aimed at containing non-labour costs, presumably in order to preserve the human capital accumulated.survey, wage rigidity, economic recession

The pricing behaviour of Italian firms: new survey evidence on price stickiness

This study examines price setting behaviour of Italian firms on the basis of the results of a survey conducted by Banca d’Italia in early 2003 on a sample of around 350 firms belonging to all economic sectors. Prices are mostly fixed following standard mark-up rules, although customer-specific characteristics have a role, in particular in manufacturing and services where price discrimination across customers matters. Rival prices mostly affect price-setting strategies in industrial firms. In reviewing their prices, firms follow either statedependent rules or a combination of time and state-dependent ones. Concerning the frequency of price adjustments, a considerable degree of stickiness emerges both at the stage in which firms evaluate their pricing strategies and the stage in which they actually implement the price change. In 2002 most firms changed their price only once. Three alternative explanations of nominal rigidity are ranked highest by the firms interviewed: explicit contracts, tacit collusive behaviour and the perception of the temporary nature of the shock. Prices respond asymmetrically to shocks, depending on the direction of the adjustment (positive vs negative) and the source of the shock (demand vs supply). Real rigidities – captured by the degree of market competition, customers’ search costs, the sensitivity of profits to changes in demand – play an important role in determining this asymmetry. Moreover, whereas cost shocks impact more when prices have to be raised than when they have to be reduced, demand decreases are more likely to induce a price change than demand increases.nominal rigidity, real rigidity, price-setting, inflation persistence, survey data.

What’s behind “inflation perceptions”? A survey-based analysis of Italian consumers

This study investigates inflation perceptions in both qualitative and quantitative terms and their relationship with factors likely to affect them. This has been done in a unified framework through a survey of a representative sample of Italian consumers carried out at the end of 2006. The results show that reported inflation is, on average, much higher than measured by official statistics. Inflation perceptions are higher for women, the unemployed and less educated individuals, as well as for consumers with some forms of financial distress. A very low knowledge of the inflation concept and related statistics and an inaccurate memory of past prices turn out to play a significant role in explaining the highest class of perceptions. In contrast, the characteristics of individual shopping activity do not result to be significant. All in all, these results suggest that when consumers express their opinions on what they report as “inflation”, they are incorporating a complex combination of forces that go well beyond the phenomena measured by official inflation statistics.inflation, consumers, perceptions, euro

Probing magnetars magnetosphere through X-ray polarization measurements

The study of magnetars is of particular relevance since these objects are the only laboratories where the physics in ultra-strong magnetic fields can be directly tested. Until now, spectroscopic and timing measurements at X-ray energies in soft gamma-repeaters (SGRs) and anomalous X-ray pulsar (AXPs) have been the main source of information about the physical properties of a magnetar and of its magnetosphere. Spectral fitting in the ~ 0.5-10 keV range allowed to validate the "twisted magnetosphere" model, probing the structure of the external field and estimating the density and velocity of the magnetospheric currents. Spectroscopy alone, however, may fail in disambiguating the two key parameters governing magnetospheric scattering (the charge velocity and the twist angle) and is quite insensitive to the source geometry. X-ray polarimetry, on the other hand, can provide a quantum leap in the field by adding two extra observables, the linear polarization degree and the polarization angle. Using the bright AXP 1RXS J170849.0-400910 as a template, we show that phase-resolved polarimetric measurements can unambiguously determine the model parameters, even with a small X-ray polarimetry mission carrying modern photoelectric detectors and existing X-ray optics. We also show that polarimetric measurements can pinpoint vacuum polarization effects and thus provide an indirect evidence for ultra-strong magnetic fields.Comment: 12 pages, 8 figures, accepted for publication in MNRA

Consumer price behaviour in Italy: evidence from micro CPI data

This paper investigates the behaviour of consumer prices in Italy by looking at micro data in the attempt to obtain a quantitative measure of the unconditional degree of price rigidity in the Italian economy. The analysis focuses on the monthly frequency of price changes and on the duration of price spells, also with reference to different types of products and outlets. Prices tend to remain unchanged on average for around 10 months; duration is longer for nonenergy industrial goods and services and much shorter for energy products. Price changes are more frequent upward than downward, in larger stores than in traditional ones. When the geographical location of outlets is accounted for, price changes display considerable synchronisation, in particular in the service sector. JEL Classification: D21, D40, E31consumer prices, frequency of price change, nominal rigidity

CONSUMER PRICE SETTING IN ITALY

This paper investigates the microeconomic behaviour of consumer prices in Italy using the individual price records underlying the Italian CPI dataset collected by Istat. We discuss how to analyse price stickiness using such a detailed database and compute a quantitative measure of the unconditional degree of price rigidity in the Italian economy. The analysis focuses on the monthly frequency of price changes and on the duration of price spells, with a sectoral breakdown as well as with a classification by type of outlet. Prices are in general found to be rather sticky, remaining unchanged on average for around 10 months; price spells last longer for non-energy industrial goods and services, much less for energy products. Prices are revised more frequently upwards than downwards, while the size of price changes is quite symmetric. Price st ickiness is found to be less marked in large modern stores than in smaller traditional shops. Price changes display considerable synchronisation, in particular in the services sector. The average frequency of price changes and the probability of observing a price change over time and across items are positively related to headline inflation and increases in VAT rates and negatively related to the share of attractive prices. These findings are consistent with the ones reported in similar national studies for other countries of the euro area, which were conducted by the National Central Banks within the Eurosystem Inflation Persistence Network.consumer prices, nominal rigidity, frequency of price change

Tax Incentives for Technological Business Innovation in Brazil: The Use of the Good Law - Lei do Bem (Law No. 11196/2005)

The Research & Development & technological innovation (RD&I) are among the main sources for the development and growth of developed and developing countries. To stimulate investment in RD&I by private companies, the government resorts to several mechanisms, such as financial and non-financial incentives, such as tax incentives. Thus, this work is aimed at analyzing, through an exploratory research with private companies from various sectors of the Brazilian economy, the use of tax incentives for RD&I in the private sector, set forth in  the main public incentive mechanism for RD&I enforced by the Federal Government of Brazil - Lei do Bem. The findings show the importance of public policies to promote investment in RD&I in Brazilian private firms, but also highlight difficulties and improvement suggestions for the use of tax incentives provided for by the Good Law - Lei do Bem, which results in a number far below the expectations of the Federal Government of Brazil

Relationship between corneal temperature and i0ntraocular pressure in healthy Individuals. a clinical thermographic analysis

To study the geographical distribution of corneal temperature (CT) and its influence on the intraocular pressure (IOP) of healthy human volunteers. Materials and Methods. Fifteen subjects (7 M, 8 F), 33.8 +/- 17.4 years old, were enrolled in this pilot, cross-sectional study. Measurements of CT were taken after one hour with closed eyelids (CET) or closed eyelids with a cooling mask (cm-CET) and compared to baseline. Results. If compared to baseline, after CET, average CT significantly increased by 0.56 degrees C in the RE and by 0.48 degrees C in the LE (p < 0.001) and IOP concomitantly significantly increased by 1.13 mm Hg and 1.46 mm Hg, respectively, in each eye (p < 0.001). After cm-CET, average CT significantly decreased by 0.11 degrees C and 0.20 degrees C, respectively, in the RE and LE (RE p = 0.04; LE p = 0.024), followed by a significant IOP decrease of 2.19 mm Hg and 1.54 mm Hg, respectively, in each eye (RE p < 0.001; LE = 0.0019). Conclusion. Significant variations of CT occurred after CET and cm-CET and were directly correlated with significant differences of IOP. It can be speculated that both oxidative stress and sympathetic nerve fiber stimulation by temperature oscillations may affect the regulation of AH vortex flow and turnover, thus influencing IOP values

Maternal Folate Intake and Risk of Childhood Brain and Spinal Cord Tumors: A Systematic Review and Meta-Analysis

Background: Many epidemiological studies have investigated the effect of maternal diet and prenatal multivitamin supplementation on pediatric cancer risk. Childhood brain and spinal cord tumors (CBSCT) have been attributed to different possible risk factors. Methods: We conducted a systematic review and meta-analysis on maternal folate intake before and during pregnancy and the risk of CBSCT. We systematically reviewed publications obtained by searching the Insitute for Scientific Information Web of Knowledge and PubMed literature databases. We extracted the risk estimate of the highest and the lowest reported categories of intake from each study and conducted a meta-analysis using a random-effects model. Results: The results of the pooled analysis of all 10 studies, 1 cohort and 9 case-control studies, indicated that maternal folate intake was inversely associated with CBSCT risk (OR 0.77; 95% CI 0.67–0.88, p &#x3c; 0.001; I2 = 51.22%, p = 0.001). Separate analyses on the basis of the source of folate (folic acid supplementation, dietary folate) and in relation to the timing of exposure (before pregnancy, during pregnancy) found that folic acid supplementation was associated with an approximately 23% reduction in ­CBSCT risk (OR 0.77, 95% CI 0.66–0.90, p = 0.001; I2 = 53.18%, p = 0.001) and consumption during pregnancy was associated with an approximately 20% reduction in CBSCT risk (OR 0.80, 95% CI 0.67–0.97, p = 0.020; I2 = 62.48%, p &#x3c; 0·001). Conclusions: Maternal consumption of folic acid is associated with a reduced risk of CBSCT. Further investigations are necessary to increase the reliability of the results and estimate the relationship between dose-response and the best outcome

How are firms’ wages and prices linked : survey evidence in Europe

This paper presents new evidence on the patterns of price and wage adjustment in European firms and on the extent of nominal rigidities. It uses a unique dataset collected through a firm-level survey conducted in a broad range of countries and covering various sectors. Several conclusions are drawn from this evidence. Firms adjust wages less frequently than prices: the former tend to remain unchanged for about 15 months on average, the latter for around 10 months. The degree of price rigidity varies substantially across sectors and depends strongly on economic features, such as the intensity of competition, the exposure to foreign markets and the share of labour costs in total cost. Instead, country specificities, mostly related to the labour market institutional setting, are more relevant in characterising the pattern of wage adjustment. The latter exhibits also a substantial degree of time-dependence, as firms tend to concentrate wage changes in a specific month, mostly January in the majority of countries. Wage and price changes feed into each other at the micro level and there is a relationship between wage and price rigiditysurvey, wage rigidity, price rigidity, indexation, institutions, time dependent