Rules versus discretion in fiscal policy

This paper purports to apply the Kydland-Prescott framework of dynamic inconsistency to the case of fiscal policy, by considering the trade-off between output and debt stabilization. The Government budget constraint provides the link between debt dynamics and the level of activity, influenced by fiscal policy. Contrary to what happens in the monetary policy framework, however, a commitment is not always superior to discretion, even in the absence of uncertainty, but only when the public debt-GDP ratio is sufficiently large. The introduction of uncertainty, as usual, implies a reduction in the net benefit generated by the adoption of a fixed rule.rules, discretion, time inconsistency, fiscal policy

Pigouvian Tax, Abatement Policies and Uncertainty on the Environment

The paper examines the effects of environmental uncertainty on Pigouvian tax and abatement policy used, either separately or contemporaneously, to counteract pollution. We discuss uncertainty in three aspects: environmental quality, pollution effect and the impact of abatement. For each case we determine the conditions ensuring that uncertainty increases the size of public intervention and provide an economic interpretation and some parallelisms with other risk problems. The last part of the paper generalizes some of our results to the case of N-th order risk changes.Pigouvian tax, Abatement policies, Environment, Uncertainty, Bivariate utility

On the substitution between saving and prevention

This work makes a joint analysis of prevention and saving decisions. First we determine the optimal levels of the two variables and we analyze substitution between them. Second we provide some comparative statics results in order to determine the effects on optimal saving and prevention of changes in exogenous present and future wealth and in possible future loss. Finally we introduce insurance into the model and we extend the separation result, derived in the literature which studies the substitution between insurance and saving, to the case where prevention is considered too.Prevention, Saving, Insurance

Automatic Color Inspection for Colored Wires in Electric Cables

In this paper, an automatic optical inspection system for checking the sequence of colored wires in electric cable is presented. The system is able to inspect cables with flat connectors differing in the type and number of wires. This variability is managed in an automatic way by means of a self-learning subsystem and does not require manual input from the operator or loading new data to the machine. The system is coupled to a connector crimping machine and once the model of a correct cable is learned, it can automatically inspect each cable assembled by the machine. The main contributions of this paper are: (i) the self-learning system; (ii) a robust segmentation algorithm for extracting wires from images even if they are strongly bent and partially overlapped; (iii) a color recognition algorithm able to cope with highlights and different finishing of the wire insulation. We report the system evaluation over a period of several months during the actual production of large batches of different cables; tests demonstrated a high level of accuracy and the absence of false negatives, which is a key point in order to guarantee defect-free productions

Correlated risks, bivariate utility and optimal choices

In this paper, we consider a décision-maker facing a financial risk flanked by a background risk, possibly non-financial, such as health or environmental risk. A decision has to be made about the amount of an investment (in the financial dimension) resulting in a future benefit either in the same dimension (savings) or in the order dimension (environmental quality or health improvement). In the first case, we show that the optimal amount of savings decreases as the pair of risks increases in the bivariate increasing concave dominance rules of higher degrees which express the common preferences of all the decision-makers whose two-argument utility function possesses direct and cross derivatives fulfilling some specific requirements. Roughly speaking, the optimal amount of savings decreases as the two risks become "less positively correlated" or marginally improve in univariate stochastic dominance. In the second case, a similar conclusion on optimal investment is reached under alternative conditions on the derivatives of the utility function.bivariate higher order increasing concave stochastic dominance, precautionary savings, background risk, dependence

La “New Economic Geography” e lo sviluppo locale

Questo lavoro è la versione preliminare del capitolo dedicato alla “New Economic Geography” (NEG) ed alle sue implicazioni per lo sviluppo locale del testo “Manuale di sviluppo locale” (a cura di G. Seravalli), attualmente in corso di stesura. Il lavoro studia innanzitutto il problema della localizzazione delle imprese produttrici di manufatti, distinguendo le forze che, nell’analisi della NEG, favoriscono la loro concentrazione o dispersione nel territorio. Fra gli elementi che determinano l’entità di tali forze un’attenzione particolare è dedicata all’esame dell’entità dei costi di trasporto, la cui evoluzione storica è, secondo la NEG, all’origine della nascita delle agglomerazioni industriali. L’ultima parte del lavoro analizza, infine, il ruolo delle risorse immobili, esaminandone le implicazioni per le scelte di localizzazione della produzione ed evidenziandone la rilevanza nell’avvio dei processi di sviluppo delle aree arretrate.economic geography, local development, transport costs, agglomeration

Unfolding political attitudes through the face: facial expressions when reading emotion language of left- and right-wing political leaders

Spontaneous emotionally congruent facial responses (ECFR) to others\u2019 emotional expressions can occur by simply observing others\u2019 faces (i.e., smiling) or by reading emotion related words (i.e., to smile). The goal of the present study was to examine whether language describing political leaders\u2019 emotions affects voters by inducing emotionally congruent facial reactions as a function of readers\u2019 and politicians\u2019 shared political orientation. Participants read sentences describing politicians\u2019 emotional expressions, while their facial muscle activation was measured by means of electromyography (EMG). Results showed that reading sentences describing left and right-wing politicians \u201csmiling\u201d or \u201cfrowning\u201d elicits ECFR for ingroup but not outgroup members. Remarkably, ECFR were sensitive to attitudes toward individual leaders beyond the ingroup vs. outgroup political divide. Through integrating behavioral and physiological methods we were able to consistently tap on a \u2018favored political leader effect\u2019 thus capturing political attitudes towards an individual politician at a given moment of time, at multiple levels (explicit responses and automatic ECFR) and across political party membership lines. Our findings highlight the role of verbal behavior of politicians in affecting voters\u2019 facial expressions with important implications for social judgment and behavioral outcomes

Men’s reactions to gender inequality in the workplace: From relative deprivation on behalf of women to collective action

: Over recent years, the role of men as women's allies in the struggle for gender equality has become increasingly important. Previous research has shown that often men do not fight gender inequalities as they fail to recognize the severity of discrimination against women (e.g., in hiring). In this study (N = 427), we examined whether men who experienced relative deprivation on behalf of women-a form of relative deprivation that stems from the awareness that women hold a less privileged position in society-were more motivated to engage in collective action to support gender equality in the workplace. The findings showed that men's feelings of deprivation on behalf of women were associated with a greater willingness to engage in collective action for gender equality. This relationship was sequentially mediated by two emotional reactions related to deprivation-increased guilt about gender inequalities and decreased fear of a potential backlash-and the moral conviction of acting for gender equality. These results suggest that men's awareness of gender inequality at work is an important antecedent to their acting in solidarity with women and that emotions and moral conviction are two psychological processes that turn cognition into behavior. Action to reduce gender inequalities should make men more sensitive to seeing that they hold a privileged position in society and to recognizing the pervasive and harmful nature of women's deprivation

On the significance of diffuse crack width self-evolution in the phase-field model for residually stressed brittle materials

The Phase-Field method is an attractive numerical technique to simulate fracture propagation in materials relying on Finite Element Method. Its peculiar diffuse representation of cracks makes it suitable for a myriad of problems, especially those involving multiple physics and complex-shaped crack patterns. Recent literature provided linear relationships between the width of the diffuse crack and the material intrinsic fracture toughness, through a material characteristic length. However, lately, it was shown how the existence of a residual stress field can affect the represented crack width even for fully homogeneous materials, in terms of toughness. In this short note, the authors tried to shed some light on the factors influencing the width of the diffuse crack representation. By simulating crack propagation in several residually stressed brittle materials, it was shown how the width of the diffuse crack is affected by the ratio between the driving force - due to the externally applied load - and the driving force required to propagate the crack. In other words, the diffuse crack extent can be linked to the degree of crack propagation stability/instability. Monitoring the evolution of the studied quantity can be of great interest to rapidly assess crack instability circumstances, under displacement control

The Ginevra de\u2019 Benci Effect: Competence, Morality, and Attractiveness Inferred From Faces Predict Hiring Decisions for Women

The present study examined the role of morality, competence, and attractiveness as perceived from faces in predicting hiring decisions for men and women. Results showed that for both female and male applicants, facial competence significantly predicted the hiring decision directly and indirectly, through the mediation of the overall impression. Decisions concerning female applicants were, however, significantly predicted by multiple dimensions\u2014that is, facial morality, facial competence, and attractiveness\u2014with the mediation of the overall impression. Facial competence was the only significant predictor of impression and, in turn, hiring decision about men. These findings resonate the motto Virtutem forma decorat, \u201cBeauty adorns virtue,\u201d painted by Leonardo da Vinci on the reverse side of the portrait of Ginevra de\u2019 Benci, and suggest that women\u2019s chances of getting a job are less than those of men whenever they do not show a moral and competent and attractive face