This paper provides a simply theory to explain the impact of sanctions on a regime’s policies and behavior. Sanctions are generally put to strip the target country from its available rents and weaken the government’s stance against growing discontent in the population. We show however that...

Preventive care should be subsidized in traditional insurance contracts since policyholders ignore the benefit of their prevention choice on the insurance premium (Ellis and Manning, 2007 JHE). We study participating policies as risk-sharing agreements among policyholders who decide how much to...

This paper claims that the 2011 Italian referendum on nuclear power is taking shape as a clean laboratory for the measurement of one of the main aspects of the NIMBY (Not In My BackYard) issue. Since the citizens voted on the possibility for the government to set up new nuclear plants in...

This paper investigates the effects of board of director collusion on managerial incentives and firm values. Recent academic research hints at the social network of board of directors as an important conduit for coordinating corporate governance policies, such as managerial pay, and curbing...

This paper investigates the impact of heterogeneous wealth on credit allocation from an egalitarian opportunity and an efficiency point of view. Under asymmetric information on both wealth and the responsibility variable there is no trade-off between equality and efficiency, actually wealth...

The purpose of this paper is to propose theoretical foundations on the impact of transfer scheme, e.g. Community Agricultural Policy, on income inequality within European Countries. First, we show that ex-post inequality (in the after-transfer distribution) may increase if either initial...

The aim of this paper is to investigate the nexus between demand patterns and innovation as it stems from research efforts and the extent of specialization. In the proposed model an innovation race conducted by entrants investing in research and development against established incumbents raises...

This paper investigates the 2011 Italian referendum on nuclear power as a clean laboratory for recovering information on the spatial pattern of votes about the construction (or restoration) of nuclear facilities. Our results show that voting preferences on building nuclear facilities are...

Can a bank increase its profit by subsidizing inactivity? This paper suggests this may occur, due to the presence of hidden information, in a monopolistic credit market. Rather than offering credit in a pooling contract, a monopolist bank can sort borrowers through an appropriate subsidy to...

The paper investigates the mechanics through which novel technological principles are developed and diffused throughout an economy consisting of a technologically heterogeneous ensemble of firms. In the model entrepreneurs invest in the discovery and in the diffusion of a technological principle...