Distance, bank heterogeneity and entry in local banking markets

We examine the determinants of entry into Italian local banking markets during the period 1991-2002 and build a simple model in which the probability of branching in a new market depends on the features of both the local market and the potential entrant. Our econometric findings show that, all else being equal, banks are more likely to expand into those markets that are closest to their pre-entry locations. We also find that large banks are more able to cope with distance-related entry costs than small banks. Finally, we show that banks have become increasingly able to open branches in distant markets, probably due to the advent of information and communication technologies.entry, barriers to entry, local banking markets, geographical distance.

Extraction of bioactive polyphenols with high antioxidant activity from bilberry (Vaccinium myrtillus L.) processing waste

Bioactive polyphenols were extracted from the peel fraction of bilberry processing waste using aqueous ethanol as solvent. A response surface methodology was used to evaluate the effects of liquid-to-solid ratio (R), solvent composition (C), extraction time (E) and temperature (T) on the extraction yield. The following optimal conditions were determined: R = 30 mL/g, C = 57%, E = 160 min, T = 40 °C. Phenolic extracts with a polyphenol content of 83.75 ± 4.16 mg GAE/g and an antioxidant activity of 7.64 ± 0.43 mmol TE/g were also produced using a batch extractor operating under optimal process conditions

Fibrolipoma of the oral cavity: treatment choice in a case with an unusual location

Fibro-lipoma has been infrequently found in the oral cavity. Clinical and histological features of an unusual case located alongside the lingual cortical of the mandible are reported. A particular surgical approach was used with an intrasulcular incision, since it allowed best access to the pathological tissue, optimal flap repositioning and a lower risk of post-surgical wound dehiscence

What entropy at the edge of chaos?

Numerical experiments support the interesting conjecture that statistical methods be applicable not only to fully-chaotic systems, but also at the edge of chaos by using Tsallis' generalizations of the standard exponential and entropy. In particular, the entropy increases linearly and the sensitivity to initial conditions grows as a generalized exponential. We show that this conjecture has actually a broader validity by using a large class of deformed entropies and exponentials and the logistic map as test cases.Comment: 6 pages, 6 figures, uses ws-procs975x65.cls. Proceedings of the Workshop "Complexity, Metastability and Nonextensivity" held in Erice 20-26 July 2004. New version: minor changes (one reference added, typos corrected, positions of figures changed, some comments added

Switching costs in local credit markets

Switching costs are a key determinant of market performance. This paper tests their existence in the corporate loan market in which they are likely to play a central role because of the complexity of contracts and informational problems. Using very detailed data at bank-firm level on four Italian local credit markets we empirically show that firms tend to iterate their choice of the main bank over time. This inertia is not related to unobserved and time invariant preferences of firms across banks and can be attributed to the existence of switching costs. We also offer evidence that banks price discriminate between new and old borrowers by charging lower interest rates to the former in order to cover part of the switching costs. The discount is about 44 basis points, equal to 7 per cent of the average interest rate. These results prove robust to a number of other potential identification drawbacks.switching costs, local credit markets, price discrimination, lending relationships

Regional Unemployment in the EU before and after the Global Crisis

In this paper, we have empirically assessed the evolution of European regions in terms of both employment and unemployment during the recent financial crisis and Global Recession. Our specific research questions were as follows: (i) has there been a reversal in employment and unemployment dynamics at a regional level, during the crisis (2007–10) compared to the previous period (2004–07)? (ii) have the western regions in ‘old’ EU states behaved differently in response to the crisis compared with the eastern regions of the NMS? Finally, (iii) are the differences between the two groups of regions related to structural or institutional variables? After a review of the literature on the key determinants of regional unemployment, we have summarized our main findings concerning the Global Crisis’ impact on the labour market. Our econometric investigation aimed to answer the questions we have posed. Structural characteristics have been considered in terms of sector specialization of regional economies. In addition, we have considered certain institutional characteristics, by including indicators of the share of temporary workers and of long-term unemployed. Our analysis has then been targeted at the sub-samples of western- and eastern-European regions: we show that the critical factors for labour market performance during the crisis in these two groups differs greatly. From a methodological viewpoint, we have exploited a spatial filtering technique which allowed us to greatly reduce any unobserved variable bias – a significant problem in cross-sectional models – by accounting for latent unobserved spatial patterns.crisis, employment, unemployment, European Union, NUTS-2, spatial filtering, sectoral composition, spatially heterogeneous parameters

Production of a New Drug: A Sequential Investment ProcessUnder Uncertainty

On the basis of a database of more than 80 thousand records on total retails and production costs of the pharmaceutical industry worldwide we consider four classes of drugs. We evaluate the expected profits of an investment in a new drug in the four classes of pharmaceutical products by considering the standard NPV evaluation. We compare these outcomes with the evaluation of the expected profits of the four new drugs obtained by the real option approach. Interestingly enough quite different outcomes are obtained. These results loom on the capacity of standard methods to give a reliable evaluation of real investment projects that are analogous to compound optionscompound option, real option valuation, net present value, drugs

Minimising movements for the motion of discrete screw dislocations along glide directions

In [3] a simple discrete scheme for the motion of screw dislocations toward low energy configurations has been proposed. There, a formal limit of such a scheme, as the lattice spacing and the time step tend to zero, has been described. The limiting dynamics agrees with the maximal dissipation criterion introduced in [8] and predicts motion along the glide directions of the crystal. In this paper, we provide rigorous proofs of the results in [3], and in particular of the passage from the discrete to the continuous dynamics. The proofs are based on $\Gamma$-convergence techniques