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This article develops a non-cooperative game with managerial quantity-setting firms in which owners choose whether to delegate output and abatement decisions to managers through a contract based on emissions (conventionally denoted as ‘green’ delegation, GD) instead of sales (sales delegation, SD), and the government levies an emissions tax to incentivise firms’ emissions-reduction actions. First, it compares the Nash equilibrium outcomes between GD and SD and then contrasts them also with profit maximisation (PM). A plethora of Nash equilibria emerges, especially in the case GD versus PM (the ‘green delegation game’), depending on the public awareness toward environmental quality, ranging from the coordination game to the ‘green’ prisoner's dilemma. Second, though the contract under GD incentivises managers for emissions, the environmental damage is lower than under SD. This is because the optimal tax more than compensates the incentive for emissions. These findings suggest that designing GD contracts paradoxically favours environmental quality.
Domenico Buccella; Luciano Fanti; Luca Gori. ‘Green’ managerial delegation theory. Environment and Development Economics 2021, 1 -27.
AMA StyleDomenico Buccella, Luciano Fanti, Luca Gori. ‘Green’ managerial delegation theory. Environment and Development Economics. 2021; ():1-27.
Chicago/Turabian StyleDomenico Buccella; Luciano Fanti; Luca Gori. 2021. "‘Green’ managerial delegation theory." Environment and Development Economics , no. : 1-27.
This research introduces endogenous codetermination in a Cournot duopoly. Unlike the received literature (Kraft, 1998), this work assumes that firms bargain with their own union bargaining units under codetermination if and only if they can choose an ad hoc bargaining effort by maximising profits (three-stage non-cooperative game). There are remarkable differences compared with the main findings of the exogenous codetermination literature. Indeed, there may exist asymmetric multiple (Pareto efficient) Nash equilibria in pure strategies. Mandatory codetermination, therefore, is Pareto worsening. Each firm can then use the union bargaining power as a strategic device in a Cournot setting.
Luca Gori; Luciano Fanti. Endogenous codetermination. Managerial and Decision Economics 2021, 1 .
AMA StyleLuca Gori, Luciano Fanti. Endogenous codetermination. Managerial and Decision Economics. 2021; ():1.
Chicago/Turabian StyleLuca Gori; Luciano Fanti. 2021. "Endogenous codetermination." Managerial and Decision Economics , no. : 1.
This research analyses firms' strategic choice of adopting an abatement technology in an environment with pollution externalities when the government levies an emission tax to incentivise firms to undertake emission-reducing actions. A set of different Nash equilibria – ranging from dirty to green production – arises in both quantity-setting and price-setting duopolies. Results show that if societal awareness towards a clean environment is relatively low (resp. high) and the index measuring the relative cost of abatement is relatively high (resp. low), the strategic interaction between two independent, competing, and selfish firms playing the abatement game leads them not to abate (resp. to abate) as the Pareto efficient outcome: no conflict exists between self-interest and mutual benefit to not undertake (resp. to undertake) emissions-reducing actions. Multiple Nash equilibria or a “green” prisoner's dilemma can also emerge in pure strategies. When the choice of adopting a green technology is an anti-prisoner's dilemma (deadlock), the society is better off, as social welfare under abatement is always larger than under no abatement. These findings suggest that living in a sustainable environment encourages the improvement of public education systems for the achievement of an eco-responsible attitude and the development of clean technologies through ad hoc R&D.
Domenico Buccella; Luciano Fanti; Luca Gori. To abate, or not to abate? A strategic approach on green production in Cournot and Bertrand duopolies. Energy Economics 2021, 96, 105164 .
AMA StyleDomenico Buccella, Luciano Fanti, Luca Gori. To abate, or not to abate? A strategic approach on green production in Cournot and Bertrand duopolies. Energy Economics. 2021; 96 ():105164.
Chicago/Turabian StyleDomenico Buccella; Luciano Fanti; Luca Gori. 2021. "To abate, or not to abate? A strategic approach on green production in Cournot and Bertrand duopolies." Energy Economics 96, no. : 105164.
This research develops a continuous-time optimal growth model that accounts for population dynamics resembling the historical pattern of the demographic transition. The Ramsey model then becomes able to generate multiple determinate or indeterminate stationary equilibria and explain the process of the transition from a state with high fertility and low income per capita to a state with low fertility and high income per capita. The article also investigates the emergence of damped or persistent cyclical dynamics.
Andrea Caravaggio; Luca Gori; Mauro Sodini. Population dynamics and economic development. Discrete & Continuous Dynamical Systems - B 2021, 1 .
AMA StyleAndrea Caravaggio, Luca Gori, Mauro Sodini. Population dynamics and economic development. Discrete & Continuous Dynamical Systems - B. 2021; ():1.
Chicago/Turabian StyleAndrea Caravaggio; Luca Gori; Mauro Sodini. 2021. "Population dynamics and economic development." Discrete & Continuous Dynamical Systems - B , no. : 1.
According to the conventional theory of the demographic transition, mortality decline has represented the major trigger of fertility decline and sustained economic development. In Sub-Saharan Africa (SSA), the HIV/AIDS epidemic has had a devastating impact on mortality, dramatically reversing the long-term positive trend in life expectancies in high HIV-prevalence countries. Moreover, SSA is experiencing a delayed and slower fertility transition compared to other world regions and there is growing empirical evidence highlighting the potential for a paralysis, or even a reversal, of the fertility transition in countries with severe HIV epidemics. This work builds on a unified growth theory-like general equilibrium model combined with HIV spread, where mortality endogenously feeds back into fertility and education decisions. The model supports the evidence of an HIV-triggered fertility reversal in SSA via the fall in education and human capital investments due to increased adult mortality, which eventually breaks the switch from quantity to quality of children. Fertility reversal is predicted to be more likely to occur in countries experiencing severe HIV epidemics, and its effects may persist even under successful scenarios of HIV control. These results suggest that the alarming possibility of a paralysis in the fertility transition, which so far has aroused little concern among international organizations, e.g., in the last round of UN population projections, should be seriously considered with a view to prioritizing policy interventions.
Luca Gori; Enrico Lupi; Piero Manfredi; Mauro Sodini. A contribution to the theory of economic development and the demographic transition: fertility reversal under the HIV epidemic. Journal of Demographic Economics 2020, 86, 125 -155.
AMA StyleLuca Gori, Enrico Lupi, Piero Manfredi, Mauro Sodini. A contribution to the theory of economic development and the demographic transition: fertility reversal under the HIV epidemic. Journal of Demographic Economics. 2020; 86 (2):125-155.
Chicago/Turabian StyleLuca Gori; Enrico Lupi; Piero Manfredi; Mauro Sodini. 2020. "A contribution to the theory of economic development and the demographic transition: fertility reversal under the HIV epidemic." Journal of Demographic Economics 86, no. 2: 125-155.
We provide an overview to the special issue entitled New Tools for Global Analysis of Economic Dynamics by detailing the main aim of each contribution being part of it.
Luca Gori; Angelo Antoci; Davide Fiaschi; Mauro Sodini. INTRODUCTION TO MACROECONOMIC DYNAMICS SPECIAL ISSUE ON NEW TOOLS FOR GLOBAL ANALYSIS OF ECONOMIC DYNAMICS. Macroeconomic Dynamics 2019, 25, 603 -608.
AMA StyleLuca Gori, Angelo Antoci, Davide Fiaschi, Mauro Sodini. INTRODUCTION TO MACROECONOMIC DYNAMICS SPECIAL ISSUE ON NEW TOOLS FOR GLOBAL ANALYSIS OF ECONOMIC DYNAMICS. Macroeconomic Dynamics. 2019; 25 (3):603-608.
Chicago/Turabian StyleLuca Gori; Angelo Antoci; Davide Fiaschi; Mauro Sodini. 2019. "INTRODUCTION TO MACROECONOMIC DYNAMICS SPECIAL ISSUE ON NEW TOOLS FOR GLOBAL ANALYSIS OF ECONOMIC DYNAMICS." Macroeconomic Dynamics 25, no. 3: 603-608.
Despite the increasing rate of diffusion of effective therapies, the battle against HIV/AIDS in Sub-Saharan Africa (SSA) is far from being over. Three main challenges are that the epidemics might paralyse or reverse the fertility transition, the expansion of the resources needed to finance the fight against HIV, and the emerging resistance to anti-retroviral treatments. This research proposes a UGT-like model showing the complexity of the interplay amongst the (macro)economy, the epidemics, their endogenous feedback on mortality and fertility and the central role of policy actions aimed to fight HIV. The disease-induced increase in adult mortality can hamper economic development by its upward pressure on the precautionary demand for children and downward pressure on education. This can dramatically reduce physical and human capital accumulation.
Luca Gori; Piero Manfredi; Mauro Sodini. HIV/AIDS, Demography and Development: Individual Choices Versus Public Policies in SSA. Human Capital and Economic Growth 2019, 323 -356.
AMA StyleLuca Gori, Piero Manfredi, Mauro Sodini. HIV/AIDS, Demography and Development: Individual Choices Versus Public Policies in SSA. Human Capital and Economic Growth. 2019; ():323-356.
Chicago/Turabian StyleLuca Gori; Piero Manfredi; Mauro Sodini. 2019. "HIV/AIDS, Demography and Development: Individual Choices Versus Public Policies in SSA." Human Capital and Economic Growth , no. : 323-356.
This article develops a theory to explain economic development in a neoclassical growth model. The (co)existence of endogenous labour supply and endogenous lifetime (affected by public and private expenditures on health) allows to effectively observe multiple development scenarios under the assumption of gross substitutability between consumption and leisure. The initial condition of a macro-economy (history) and expectation-driven coordination failures (indeterminacy) become alternative explanations of long-term demo-economic outcomes of nations. The novelty of this study is to link the theoretical literature on endogenous lifetime and economic growth with the theoretical literature on endogenous labour supply and indeterminacy by concentrating on the global analysis. The model also allows to explain the coexistence of least-developed, developing and developed countries in the same setting.
Luca Gori; Mauro Sodini. Endogenous labour supply, endogenous lifetime and economic development. Structural Change and Economic Dynamics 2019, 52, 238 -259.
AMA StyleLuca Gori, Mauro Sodini. Endogenous labour supply, endogenous lifetime and economic development. Structural Change and Economic Dynamics. 2019; 52 ():238-259.
Chicago/Turabian StyleLuca Gori; Mauro Sodini. 2019. "Endogenous labour supply, endogenous lifetime and economic development." Structural Change and Economic Dynamics 52, no. : 238-259.
This article analyzes a general equilibrium growth model with overlapping generations and (production-induced) environmental degradation. Individuals react to environmental damages through mitigation or adaptation. In the former case, they reduce production and its environmental impact. In the latter, they do not tackle the causes of the problem but rather its consequences (i.e., the wellbeing loss due to environmental degradation) by increasing defensive expenditures. Despite its simplicity, the model can generate different long-term outcomes: convergence to a stationary state following a unique trajectory or local/global indeterminacy. In the last scenario, initial conditions (history) and individual expectations matter and the model can generate coordination failures and endogenous fluctuations. Results cast doubt on solutions to environmental problems relying on the role of individual behavior change or adaptation.
Angelo Antoci; Luca Gori; Mauro Sodini; Elisa Ticci. Maladaptation and global indeterminacy. Environment and Development Economics 2019, 24, 643 -659.
AMA StyleAngelo Antoci, Luca Gori, Mauro Sodini, Elisa Ticci. Maladaptation and global indeterminacy. Environment and Development Economics. 2019; 24 (6):643-659.
Chicago/Turabian StyleAngelo Antoci; Luca Gori; Mauro Sodini; Elisa Ticci. 2019. "Maladaptation and global indeterminacy." Environment and Development Economics 24, no. 6: 643-659.
A central policy issue in the battle against HIV in sub-Saharan Africa (SSA) is whether and when high-prevalence countries might become autonomous in designing and implementing their own intervention policies against the disease. The aim of this research is twofold. First, it develops a framework for explaining economic development in a general equilibrium growth model with endogenous fertility and endogenous mortality forced by the threat of a persistent, deadly infectious disease, such as HIV/AIDS in SSA. Second, it aims to shed light on the interplay between foreign aid and endogenous domestic public policies in SSA countries severely afflicted by HIV. Consequently, it investigates the demographic and macroeconomic implications of an intervention against HIV/AIDS whose total amount is the sum of an exogenous component representing foreign aid and an endogenous public expenditure. On the assumption that these policies allow the same degree of HIV control, we show the emergence of quite different responses in terms of key demo-economic variables. These effects mainly pass through the fertility response to the evolving epidemic conditions.
Luca Gori; Piero Manfredi; Mauro Sodini. A PARSIMONIOUS MODEL OF LONGEVITY, FERTILITY, HIV TRANSMISSION AND DEVELOPMENT. Macroeconomic Dynamics 2019, 1 -20.
AMA StyleLuca Gori, Piero Manfredi, Mauro Sodini. A PARSIMONIOUS MODEL OF LONGEVITY, FERTILITY, HIV TRANSMISSION AND DEVELOPMENT. Macroeconomic Dynamics. 2019; ():1-20.
Chicago/Turabian StyleLuca Gori; Piero Manfredi; Mauro Sodini. 2019. "A PARSIMONIOUS MODEL OF LONGEVITY, FERTILITY, HIV TRANSMISSION AND DEVELOPMENT." Macroeconomic Dynamics , no. : 1-20.
The aim of this research is to build on a theory for explaining economic development in a (neoclassical) growth model with endogenous fertility. The economy is inhabited by overlapping generations of rational and identical individuals and identical competitive firms producing with a constant-returns-to-scale technology and no externalities. From a theoretical perspective, the distinguishing feature of this work is that endogenous fertility per se explains the existence of low- and high-development regimes. It provides different reasons (history driven or expectations driven) why some countries enter development trajectories with high GDP and low fertility and others experience underperformances with low GDP and high fertility. The model is also capable to reproduce fertility fluctuations and explain the baby busts and baby booms observed in the last century in some developed countries.
Luca Gori; Mauro Sodini. A CONTRIBUTION TO THE THEORY OF FERTILITY AND ECONOMIC DEVELOPMENT. Macroeconomic Dynamics 2019, 25, 753 -775.
AMA StyleLuca Gori, Mauro Sodini. A CONTRIBUTION TO THE THEORY OF FERTILITY AND ECONOMIC DEVELOPMENT. Macroeconomic Dynamics. 2019; 25 (3):753-775.
Chicago/Turabian StyleLuca Gori; Mauro Sodini. 2019. "A CONTRIBUTION TO THE THEORY OF FERTILITY AND ECONOMIC DEVELOPMENT." Macroeconomic Dynamics 25, no. 3: 753-775.
Luca Gori; Mauro Sodini. Introduction to Metroeconomica special issue on Nonlinear Economic Dynamics (NED‐CICSE 2017). Metroeconomica 2019, 70, 362 -364.
AMA StyleLuca Gori, Mauro Sodini. Introduction to Metroeconomica special issue on Nonlinear Economic Dynamics (NED‐CICSE 2017). Metroeconomica. 2019; 70 (3):362-364.
Chicago/Turabian StyleLuca Gori; Mauro Sodini. 2019. "Introduction to Metroeconomica special issue on Nonlinear Economic Dynamics (NED‐CICSE 2017)." Metroeconomica 70, no. 3: 362-364.
This research develops a tractable two-stage non-cooperative game with complete information describing the behaviour of price-setting firms that must choose to be profit maximisers or bargainers under codetermination in a network industry with horizontal product differentiation. The existing theoretical literature has already shown that codetermination might arise as the endogenous market outcome in a strategic competitive quantity-setting duopoly. In sharp contrast with this result, the present article shows that codetermination does never emerge as a Nash equilibrium in a price-setting non-network duopoly. Then, it aims at highlighting the role of network externalities in determining changes of paradigm of the game and letting codetermination become a sub-game perfect Nash equilibrium when prices are strategic substitutes or strategic complements. This equilibrium may be Pareto efficient. Results allow distinguishing between mandatory codetermination and voluntary codetermination. The article also proposes a model of endogenous codetermination according to which every firm may choose to bargain with its own corresponding union bargaining unit only whether the firm’s bargaining strength is exactly the profit-maximising one. The equilibrium outcomes emerging in this case range from a uniform Nash equilibrium, in which both firms are codetermined, to mixed Nash equilibria, in which only one of them chooses to be codetermined. These results are ‘network depending’ and do not hold in a non-network duopoly.
Luciano Fanti; Luca Gori. Codetermination, Price Competition and the Network Industry. German Economic Review 2019, 20, e795 -e830.
AMA StyleLuciano Fanti, Luca Gori. Codetermination, Price Competition and the Network Industry. German Economic Review. 2019; 20 (4):e795-e830.
Chicago/Turabian StyleLuciano Fanti; Luca Gori. 2019. "Codetermination, Price Competition and the Network Industry." German Economic Review 20, no. 4: e795-e830.
The aim of this work is to analyse the interplay between economic growth and environmental quality. Specifically, the article considers an economic growth model with optimising agents à la Ramsey where production negatively affects the environment. The novelty of this work is to assume that such a negative impact does occur with a certain time lag rather than instantaneously, as is commonly assumed in economic models. The existence of (discrete) time delays in this process may be a source of instability of the unique stationary equilibrium of the system and may cause the emergence of Hopf bifurcations.
Massimiliano Ferrara; Luca Gori; Luca Guerrini; Mauro Sodini. A continuous time economic growth model with time delays in environmental degradation. Journal of Information and Optimization Sciences 2019, 40, 185 -201.
AMA StyleMassimiliano Ferrara, Luca Gori, Luca Guerrini, Mauro Sodini. A continuous time economic growth model with time delays in environmental degradation. Journal of Information and Optimization Sciences. 2019; 40 (1):185-201.
Chicago/Turabian StyleMassimiliano Ferrara; Luca Gori; Luca Guerrini; Mauro Sodini. 2019. "A continuous time economic growth model with time delays in environmental degradation." Journal of Information and Optimization Sciences 40, no. 1: 185-201.
This research aims at studying a general equilibrium closed economy with overlapping generations and inherited tastes (aspirations), as in de la Croix (Econ Lett 53(1):89–96, 1996). It shows that the interaction between the intensity of aspirations and the elasticity of substitution of effective consumption affects the qualitative and quantitative long-term dynamics from both local and global perspectives. The related literature is extended by showing that (1) the Neimark–Sacker bifurcation found by de la Croix (1996) does not necessarily give rise to fluctuations and (2) endogenous (long-lasting) fluctuations occur through the emergence of period-doubling bifurcations.
Luciano Fanti; Luca Gori; Cristiana Mammana; Elisabetta Michetti. A model of growth with inherited tastes. Decisions in Economics and Finance 2018, 41, 163 -186.
AMA StyleLuciano Fanti, Luca Gori, Cristiana Mammana, Elisabetta Michetti. A model of growth with inherited tastes. Decisions in Economics and Finance. 2018; 41 (2):163-186.
Chicago/Turabian StyleLuciano Fanti; Luca Gori; Cristiana Mammana; Elisabetta Michetti. 2018. "A model of growth with inherited tastes." Decisions in Economics and Finance 41, no. 2: 163-186.
Luciano Fanti; Luca Gori; Mauro Sodini. Codetermination and product differentiation. International Review of Economics & Finance 2018, 58, 390 -403.
AMA StyleLuciano Fanti, Luca Gori, Mauro Sodini. Codetermination and product differentiation. International Review of Economics & Finance. 2018; 58 ():390-403.
Chicago/Turabian StyleLuciano Fanti; Luca Gori; Mauro Sodini. 2018. "Codetermination and product differentiation." International Review of Economics & Finance 58, no. : 390-403.
Laura Gardini; Luca Gori; Luca Guerrini; Mauro Sodini. Introduction to the focus issue “nonlinear economic dynamics”. Chaos: An Interdisciplinary Journal of Nonlinear Science 2018, 28, 055801 .
AMA StyleLaura Gardini, Luca Gori, Luca Guerrini, Mauro Sodini. Introduction to the focus issue “nonlinear economic dynamics”. Chaos: An Interdisciplinary Journal of Nonlinear Science. 2018; 28 (5):055801.
Chicago/Turabian StyleLaura Gardini; Luca Gori; Luca Guerrini; Mauro Sodini. 2018. "Introduction to the focus issue “nonlinear economic dynamics”." Chaos: An Interdisciplinary Journal of Nonlinear Science 28, no. 5: 055801.
This research develops an augmented Solow model with population dynamics and time delays. The model produces either a single stationary state or multiple stationary states (able to characterise different development regimes). The existence of time delays may cause persistent fluctuations in both economic and demographic variables. In addition, the work identifies in a simple way the reasons why economics affects demographics and vice versa.
Luca Gori; Luca Guerrini; Mauro Sodini. Time delays, population, and economic development. Chaos: An Interdisciplinary Journal of Nonlinear Science 2018, 28, 055909 .
AMA StyleLuca Gori, Luca Guerrini, Mauro Sodini. Time delays, population, and economic development. Chaos: An Interdisciplinary Journal of Nonlinear Science. 2018; 28 (5):055909.
Chicago/Turabian StyleLuca Gori; Luca Guerrini; Mauro Sodini. 2018. "Time delays, population, and economic development." Chaos: An Interdisciplinary Journal of Nonlinear Science 28, no. 5: 055909.
This article represents an attempt to characterise the dynamics of a nonlinear duopoly with price competition and horizontal product differentiation by accounting for non-negativity constraints (on profits and the market demand). The model is set up by following the tradition led by Bischi et al. (1998), according to which players have limited information. The article shows several local and global phenomena of a two-dimensional discrete time system when the price demand elasticity varies. It also points out the differences from both a mathematical and economic point of views in terms of dynamic outcomes when the non-negativity constraints are not binding and when they are binding. This is done by combining mathematical techniques and simulation exercises
Luca Gori; Mauro Sodini. Price competition in a nonlinear differentiated duopoly. Chaos, Solitons & Fractals 2017, 104, 557 -567.
AMA StyleLuca Gori, Mauro Sodini. Price competition in a nonlinear differentiated duopoly. Chaos, Solitons & Fractals. 2017; 104 ():557-567.
Chicago/Turabian StyleLuca Gori; Mauro Sodini. 2017. "Price competition in a nonlinear differentiated duopoly." Chaos, Solitons & Fractals 104, no. : 557-567.
This article aims at studying a general equilibrium model with overlapping generations that incorporates inherited tastes (aspirations) and endogenous longevity. The existence of standard-of-living aspirations transmitted between two subsequent generations in a context where the individual state of health depends on public investments in health has some remarkable consequences at the macroeconomic level. First, aspirations allow escaping from the well-known poverty trap scenario described by Chakraborty (2004). Second, the steady-state equilibrium may be destabilized through a super-critical Neimark–Sacker bifurcation when the health tax rate is set at too high or too low a level. This causes endogenous fluctuations in income and longevity.
Luciano Fanti; Luca Gori; Cristiana Mammana; Elisabetta Michetti. INHERITED TASTES AND ENDOGENOUS LONGEVITY. Macroeconomic Dynamics 2017, 23, 674 -698.
AMA StyleLuciano Fanti, Luca Gori, Cristiana Mammana, Elisabetta Michetti. INHERITED TASTES AND ENDOGENOUS LONGEVITY. Macroeconomic Dynamics. 2017; 23 (2):674-698.
Chicago/Turabian StyleLuciano Fanti; Luca Gori; Cristiana Mammana; Elisabetta Michetti. 2017. "INHERITED TASTES AND ENDOGENOUS LONGEVITY." Macroeconomic Dynamics 23, no. 2: 674-698.