MAKE-OR-BUY THEORIES: WHERE DO WE STAND?

The aim of this paper is to discuss the state-of-the art and the directions for research on the make-orbuy problem. After thirty years of research efforts, we now have numerous contributions explaining different aspects of the nature and existence of the firm. The search for a unified theory, however, still remains, at a theoretical level, a challenge. The task is not easy, perhaps because the theory of the firm develops along two different strands, one analyzing the factors influencing the boundaries, and the other one relating to the internal structure; or because, even inside the same research strand, it is not really easy to grasp the similarities and differences between contributions that have followed one another in rapid succession over the last few years. This paper examines the theories concerning the make-or-buy problem, focusing on recent contributions that have tried to develop a unified framework and emphasizes the role of incomplete contracts as a common and significant trait of the theories discussed

PRICE DISPERSION, SEARCH COSTS AND CONSUMERS AND SELLERS HETEROGENEITY IN RETAIL FOOD MARKETS

Price dispersion, i.e. a homogeneous product sold at different prices by different sellers, is among the most replicated findings in empirical economics. The paper assesses the extent and determinants of spatial price dispersion for 14 perfectly homogeneous food products in more than 400 retailers in a market characterized by the persistence of a large number of relatively small traditional food stores, side by side large supermarkets. The extent of observed price dispersion is quite high, suggesting that monopolistic competition prevails as a result of the heterogeneity of services offered. When prices in an urban area (where the spatial concentration of sellers is much higher and consumer search costs significantly lower) have been compared with those in smaller towns and rural areas, differences in search costs and the potentially higher degree of competition did not yield lower prices; quite the contrary, they were, on average, higher for 11 of the 14 products considered. Supermarkets proved to be often, but not always, less expensive than traditional retailers, although average savings from food shopping at supermarkets were extremely low. Finally, the results of the study suggest that sellers behave differently in their pricing strategies; these differences emerge both at the firm level, and for supermarkets within the same chain. The fact that products considered were homogeneous, purchases frequently repeated, the number of sellers large, and search costs relatively low, did not suffice to keep price dispersion low. From the results presented in the paper, it is clear that what is important in explaining price dispersion is the contemporaneous heterogeneity of retailers (in terms of services) and consumers (in terms of search and shopping preferences), which makes it possible for a monopolistic competition structure of the market to emerge and for small traditional food retailers to remain in business.Price dispersion, Retail pricing, Food markets

Does institutional quality matter for multidimensional well-being inequalities? Insights from Italy

Our paper aims to shed light on regional multidimensional well-being inequalities in Italy. We first decompose the Theil index in its "within" and "between" components and we find that disparities in multidimensional well-being go beyond the historical GDP divide between the Centre-North and the South of Italy: "within" multidimensional well-being inequalities result to be as relevant as inequalities "between" these sub-national areas, suggesting that territorial-specific factors may be at work. Then, using a regional panel in the period 2004–2012, we analyse the relationship between multidimensional well-being disparities and regional institutional quality in terms of voice and accountability, government effectiveness, regulatory quality, rule of law, and corruption. We find that institutional quality matter in affecting regional multidimensional well-being inequalities and the effect varies heterogeneously accordingly to the level of public expenditure, institutional dimensions, and spatial spillovers. These findings indicate local policies could be better targeted to reduce gaps and increase expenditure efficiency, foremost among which are anti-corruption actions and measures to enhance the effectiveness of regulatory interventions, especially in regions which are lagging behind

INDICATORI DI BENESSERE E CONVERGENZA TRA LE REGIONI: UN’APPLICAZIONE AL CASO ITALIANO

Questo articolo studia la convergenza tra le regioni italiane considerando due indicatori compositi di progresso socio-economico che tengono conto della natura multidimensionale del benessere. Un primo indicatore composito viene costruito incorporando, oltre al reddito disponibile delle famiglie, altri due sotto-indicatori riguardanti gli aspetti della salute e dell’istruzione; il secondo indicatore composito viene ottenuto considerando, in aggiunta ai primi, altri tre sotto-indicatori che riguardano, rispettivamente, la qualità socio-istituzionale, le pari opportunità intergenerazionali e tra sessi sul mercato del lavoro, e la competitività regionale. La banca dati delle singole variabili o indici, complessivamente 17, che compongono i sei sotto-indicatori copre il periodo che va dal 1998 al 2008. Viene dunque valutata sia la convergenza sigma che la convergenza gamma, quest’ultima attraverso la costruzione dell’indice di Kendall. In coerenza con altri studi condotti per altri Paesi europei e che utilizzano indicatori compositi di reddito e di qualità della vita, i risultati mostrano l’esistenza di un processo di sigma convergenza tra le regioni in termini di benessere, anche se risultano assenti manifestazioni significative di mobilità intradistributiva: in altri termini, le differenze tra le regioni tendono a ridursi, ma la graduatoria in senso ordinale delle stesse non subisce variazioni di rilievo.

I contratti di programma: una questione di multitask?

"Contratti di programma": a matter of multitask? - In the light of the results from a wide empirical investigation, this essay examines some crucial characteristics of the Italian policy measure called Contratti di programma through both the analytical framework of the incomplete contracts literature and the multi-task Principal-Agent theory. The Contratti di programma policy is based on a formal agreement between the Italian Government and private firms to carry on an investment programme comprising a number of different projects (industrial investments; workers training programs; research centres and projects). The essay also provides a number of suggestions for improving the effectiveness of this policy. Keywords: multitask, asymmetric information, incomplete contracts, industrial policy Parole chiave: multitask, informazione asimmetrica, contratti incompleti, contratti di programma, politica industriale Jel Classification: D82; D86; L14; L52

Citizenship with variable geography

This contribution focuses on the persistence of territorial inequalities in many dimensions of people’s quality of life as a peculiar aspect of the civilisation-decivilisation process in today’s Italy. Emphasis is given to the relevance of beyond-GDP North-South divide which often encroaches on the sphere of citizenship rights in terms of the degree to which the population enjoys essential public services. This paper provides evidence that internal disparities are often wider and more persistent in Italy than in other European countries. It is made clear that, albeit territorial divergences have undoubtedly worsened as a result of the exogenous shocks of recent years, as regards Italy, the intensification of within-country inequalities has been influenced by both selective and restrictive policies, on one hand, and the particular structure of the Italian welfare system, on the other: the former have hit the weakest and most public-spending-dependent southern regions hardest, while the latter have protected predominantly segments of society and economy which are more present in more advanced areas

Recessione economica e cittadinanza. Il grande disinvestimento pubblico nel Mezzogiorno negli anni Duemila

La grande recessione dell’ultimo decennio e le connesse politiche di «contrasto» hanno appannato le prospettive di sviluppo economico nel nostro Paese. L’austerità «selettiva», nella versione italiana, ha significato soprattutto tagli lineari e disinvestimenti dello Stato, sia nel campo dei servizi pubblici essenziali che in quello degli interventi innovativi, materiali e immateriali, nella manutenzione del capitale fisso sociale preesistente, con un conseguente aggravamento delle disparità territoriali tra Nord e Sud. Il contributo ha l'intento di evidenziare quanto la supposta sovrabbondanza di risorse pubbliche trasferite ai meridionali in questo primo scorcio del Duemila si traduca in una sistematica e declinante minore dotazione pro capite di spesa al Sud rispetto al resto del Paese, non giustificata né da motivi di equità né da costi standard mediamente inferiori dell’amministrazione pubblica meridionale