Given the growing availability of large datasets and following recent research trends on multi-dimensional modelling, we develop three dimensional (3D) panel data models with hierarchical error components that allow for strong cross-sectional dependence through unobserved heterogeneous global...

We investigate the impact of inequality on cooperation using a linear public good game and focusing on heterogeneity in the source of income, where some participants work for their endowment (“workers”) while others do not (“non-workers”). The key finding of our paper is that cooperation...

For the last decades, regions in the United States have been diverging. More skill-intensive regions have experienced a higher wage and skill premium growth and had become even more skill-intensive. In this paper, I show that this may be driven in part by trade with China. One of the main...

The diversification of production and trade is considered almost unanimously a fundamental policy goal, particularly for developing economies whose export baskets are heavily concentrated on a few products. In what direction trade diversification ought to take place is, however, subject to...

The aim of this paper is to highlight the determinants of female employment in Italy in recent years, when education, costumes, family composition and social and individual preferences for family and work have considerably changed from the past. Nevertheless, the difficulties Italian women still...

This paper provides a normative framework to assess social welfare within a rank-dependent and bidimensional setting where individuals are characterized by income and needs. In line with the growing interest in top incomes and inequalities concerning the upper part of the income distribution...

The set of available local ‘capabilities' determines what an economy produces today (its static comparative advantage) and, at the same time, defines the trajectories that the process of structural change may take in the future. The Product Space (PS) framework developed in recent seminal...

We model an agency relationship in which the agent's cost is non-monotonic with respect to type and the type is correlated with a public ex-post signal. The principal can use lotteries to exploit the type-signal correlation within the limit of the agent's liability. We establish conditions for...

First, this paper empirically evaluates the incidence of the Japanese place-based job creation program, which has been rarely studied in Japan. The program increases employment, especially in the agricultural, retail trade and service sectors that most treated cities promote. Second, this paper...

In sequential screening problems it is found that, under some regularity conditions, local incentive compatibility constraints are sufficient for implementability. However, this follows from the assumption that the possible distributions of the unknown variable satisfy either first-order...