Libera Università Internazionale degli Studi Sociali Guido Carli

About: Libera Università Internazionale degli Studi Sociali Guido Carli is a education organization based out in Rome, Lazio, Italy. It is known for research contribution in the topics: Politics & Monetary policy. The organization has 692 authors who have published 2493 publications receiving 36411 citations. The organization is also known as: Libera Universita Internazionale degli Studi Sociali Guido Carli & Libera Università Internazionale degli Studi Sociali "Guido Carli".

Information Variables for Monetary Policy in a Small Structural Model of the Euro Area

Abstract: This Paper estimates a small New-Keynesian model with imperfect information and optimal discretionary policy using data for the euro area. The model is used to assess the usefulness of monetary aggregates and unit labour costs as information variables for monetary policy. The estimates reveal that the information content of the M3 monetary aggregate is limited. A more useful role emerges for the unit labour costs indicator, which contains information that helps to reduce the volatility of the output gap. Finally, the estimated weights for the objectives of monetary policy indicate that considerable importance is attributed to interest-rate smoothing, greater than the importance attributed to the output gap stabilization. This finding indicates that the welfare gains of commitment may be smaller than is suggested by typical parameterizations of New-Keynesian models.

Corporate Governance Research in the Wake of a Systemic Crisis: Lessons and Opportunities from the COVID-19 Pandemic

Abstract: The Covid-19 pandemic offers an unprecedented opportunity to advance research on how various corporate governance mechanisms shape firms? decision-making, survival and success In the short term, corporate governance research could pinpoint which mechanisms in place before the pandemic (e g , ownership structure, board attributes, executive compensation) will shape corporate responses, thus affecting firms? survival in the post-pandemic period In the long term, the crisis will trigger structural changes in governance mechanisms to enable firms to either prevent or respond to the occurrences of potentially similar events In the reminder of this essay, we will first discuss the peculiar nature of the recent crisis in relation to other recent crises Then, we will analyse the impact of Covid-19 on five key areas in the field of corporate governance (i e , corporate purpose, ownership structure, board of directors, executive compensation and accountability) and, for each of them, we will suggest a series of research questions that contribute to redirecting and advancing the domain

Does It Pay or Does Firm Pay? The Relation between CSR Performance and the Cost of Debt

Abstract: This paper investigates the link between corporate social performance and cost of debt financing. The literature on the determinants of the cost of debt generally documents a negative association between measures of the risk of the firm and its cost of debt. The literature on Corporate Social Responsibility, instead, presents risk reduction as one of the potential benefits related to these investments. Thanks to that effect, therefore, an efficient market should recognize a ‘ethical financial premium’ to socially responsible firms, corresponding to a less cost of debt financing.In order to test this hypothesis, the developed model investigates the relation between firms’ CSR performance (measured through the SAM index*) and their cost of debt. Potentially confounding factors such as industry, size and time lag effects were also analyzed. Employing a unique data set of 332 firms over a time period of five years (1641 observations) we find some evidence that there is no ‘ethical financial premium’ for improved corporate social responsibility in term of cost of debt applied by banks and financial institutions to the company. Instead, the results document a positive relation between the CSR performance proxy and the cost of debt, demonstrating that CSR is not considered a value driver with an impact on the firm’s risk profile, but a sort of waste of resources that can negatively affect the performance of the firm, independently from the country in which the firm operates.

Fixed Price Approximability of the Optimal Gain from Trade

Abstract: Bilateral trade is a fundamental economic scenario comprising a strategically acting buyer and seller (holding an item), each holding valuations for the item, drawn from publicly known distributions. It was recently shown that the only mechanisms that are simultaneously dominant strategy incentive compatible, strongly budget balanced, and ex-post individually rational, are fixed price mechanisms, i.e., mechanisms that are parametrised by a price p, and trade occurs if and only if the valuation of the buyer is at least p and the valuation of the seller is at most p. The gain from trade (GFT) is the increase in welfare that results from applying a mechanism. We study the GFT achievable by fixed price mechanisms. We explore this question for both the bilateral trade setting and a double auction setting where there are multiple i.i.d. unit demand buyers and sellers. We first identify a fixed price mechanism that achieves a GFT of at least 2 / r times the optimum, where r is the probability that the seller’s valuation does not exceed that of the buyer’s valuation. This extends a previous result by McAfee. Subsequently, we improve this approximation factor in an asymptotic sense, by showing that a more sophisticated rule for setting the fixed price results in a GFT within a factor \(O(\log (1/r))\) of the optimum. This is asymptotically the best approximation factor possible. For the double auction setting, we present a fixed price mechanism that achieves for all \(\epsilon > 0\) a gain from trade of at least \((1-\epsilon )\) times the optimum with probability \(1 - 2/e^{\#T \epsilon ^2 /2}\), where \(\#T\) is the expected number of trades of the mechanism. This can be interpreted as a “large market” result: Full efficiency is achieved in the limit, as the market gets thicker.