Emanuela Randon

Strategic accessibility competition

We analyze the effect of competition in market-accessibility enhancement among quality-differentiated firms. Firms are located in regions with different ex-ante transport costs to reach the final market. We characterize the equilibrium of the two-stage game in which firms first invest to improve market accessibility and then compete in prices. Efforts in accessibility improvement crucially depend on the interplay between the willingness to pay for the quality premium of the median consumer and the ex-ante difference in accessibility between regions. From the social standpoint, all the accessibility investment should be carried out by the high-quality firm. Finally quality choice is endogenized.

Correcting Market Failure Due to Interdependent Preferences: When Is Piecemeal Policy Possible?

Allowing for general utility interdependence and agent heterogeneity, we characterize taxes that will generate first best solutions in markets. We show the equivalence of tax corrections derived from the Marshallian and compensated demand approaches. Next we analyze the conditions that are required for the market failure to be corrected by: (1) specific indirect ad valorem taxes on commodities, (2) the same proportional tax rate on every commodity, and (3) a proportional income tax rate on each individual. The conditions are related to the restrictions necessary to have H synthetic consumers without externalities who replicate behavior of individuals with externalities.

Patterns of Gambling Activities and Gambling Problems Among Italian High School Students: Results from a Latent Class Analysis

This study aims to provide an estimate of the prevalence of gambling among Italian adolescents and a description of their patterns of gambling activities (PGAs) using a latent class analysis on 13 different types of games. A nationwide sample of 10,959 Italian high school students was recruited in 2013. We assessed problem gambling using the South Oaks Gambling Screen: Revisited for Adolescent (SOGS-RA) scale. Approximately half (50.6%) of students reported gambling at least once in the previous year; 5.0% of them were problem gamblers and 9.1% were at-risk gamblers according to their SOGS-RA scores. Eight PGAs were identified, among which heavy players (1.7% of students) could be classified as problem gamblers and broad skill players (2.0%) and lotteries & sports players (2.4%) as “at-risk” players. These high-risk classes were consistently associated with risky behaviours in terms of substance use, school performance, money spent on gambling and family environment; the other five classes identified low-risk players associated with safe behaviours. To the best of our knowledge, this is the first study to identify PGAs among Italian adolescents. Problem gamblers are not a homogeneous group in terms of patterns of gambling activities and are associated with different risk factors, among which environmental factors, such as parents’ gambling attitude and behaviour, deserve special attention. The acknowledgment of such patterns and risk factors could be useful in developing sensible public policies addressing prevention strategies and regulatory instruments.

Optimal Commodity Taxation and Income Distribution

We consider the interplay between income distribution and optimal commodity taxation, linking equity issues to optimal taxes through the effect of income distribution on market demand and its price elasticity. We find conditions to conciliate the equity and efficiency tradeoff and to assess the impact of inequality changes on the optimal taxation of necessity and luxury goods. We show that the regressivity or progressivity of the tax system is determined by the distribution of luxuries and necessities in the economy. If the tax system is regressive (progressive), a decrease (increase) of income inequality leads to an average decrease of the optimal tax rates, achieving welfare gains for society. Our analysis provides a framework to investigate the linkages between direct and indirect taxation.

The comparison between the normal and the special VAT scheme. An application to the art market

In the literature, the comparison between the normal and the special VAT regimesis limited (i.e. with equal and uniform rates in each production or consumption phase,the two VAT regimes are identical). In this paper we also propose a general comparison inorder to define which regime is desirable in relation to the VAT rate structure, the featuresof the buyers and sellers and the selling strategies. We propose some policies that make neutral the fiscal regime, enhancing investments and consumption. These results are developed by looking at the art market.

A Top Dog Tale with Preference Rigidities

With preference rigidities we find Pareto optima of an exchange economy, some of which involve unconsumed endowments. We show that such Pareto Optima can only be attained as market equilibria if there is a top dog in the initial endowment distribution who is richer than the other individuals. The most inegalitarian efficient allocation favouring the top dog is globally stable and is in the core. For endowment distributions with a top dog, the core contains efficient allocations more equal than the market equilibrium. A voting mechanism or government policy can also offset the top dog’s power.

L’Imposta Sul Valore Aggiunto: Regime Ordinario E Regime Del Margine a Confronto - Il Caso Del Mercato Dell’Arte (A General Comparison Between Different VAT Regimes: The Normal vs the Special Scheme - An Application to the Art Market)

In letteratura, il confronto tra i metodi di calcolo dell’imposta sul valore aggiunto (regime ordinario e regime del margine) e limitato: si riduce al risultato di equivalenza ottenuto con aliquote identiche e uniformi nelle diverse fasi della produzione e dello scambio. In questo lavoro proponiamo un’analisi comparativa generale per stabilire la desiderabilita di un metodo rispetto all’altro in relazione alla struttura delle aliquote, alla tipologia dei soggetti coinvolti, alle politiche di commercializzazione. I risultati sono applicati per valutare il meccanismo di formazione dei prezzi nel mercato dell’arte. Si propongono degli interventi di riforma per rendere il regime fiscale neutrale e trasparente, incentivando scambi e investimenti. In the literature, the comparison between the normal and the special VAT regime is limited (i.e. if the VAT rates are equal and uniform in each production or consumption phase, then the two regimes are identical). In this paper we propose a general comparison in order to define which regime is desirable in relation to the structure of the VAT rates, the features of the buyers and sellers, the selling strategies. We propose some policy reforms in order to make neutral the fiscal regime, boosting investments and consumption. The results are applied to the art market.

Measuring Consumption Externalities

Estimation and measurement of consumption externalities are still challenging problems in applied research. In this paper, externalities as Nash equilibrium are estimated using consumer demand theory and a large data set. We estimate Nash equilibrium consumption externalities in petrol budget shares of households living in a metropolitan area in UK. The reaction curves are derived from an Almost Ideal Demand System (AIDS) with externalities. A continuous set of ten year cross sections from the Family Expenditure Surveys is used. In each year, income decile cohorts are created. Results of 2SLS with Panel Data are presented after 2SLS estimates with pooling cross sections have been discussed. Results give evidence that the household petrol consumption pattern is explained by income and externality variables. We also suggest that in order to internalise the negative externality effect, households should be taxed independently of household income.

The Positive Analysis of Consumption Externalities

We present a survey on the positive analysis of consumption externalities. The aim is to analyse the effect of externalities on individual behaviour in a partial equilibrium framework. After a general discussion on external effects on individual decisions, we analyse the implications on utility and demand of different formalisations of these phenomena. Firstly, we present models in which the externality is a parameter, then we focus on most recent developments in which the externality is a function. We conclude with a discussion on the restrictions required to test the presence of externality in markets. We present also a new behavioural definition and an extensive model of externality which includes public goods.