Gioacchino Fazio

Bilateral Monopoly: A Contribution by Francesco Ferrara

Abstract In this paper, we propose an interpretation of the application of ‘cost of reproduction’ of Francesco Ferrara to the exchange between two agents to highlight its relevance for the theory of bilateral monopoly. In the Teoria delle Mercedi, Ferrara gives a numerical example to explain price determination in the exchange between one buyer and one seller. Here, this example is translated into a mathematical model that reproduces the fundamental issues of the neoclassical debate on the indeterminacy of price in the Cournot model, and anticipates the solutions proposed by Edgeworth at the end of this debate.

Regional Asymmetric Reactions to Shocks in EMU: an Assessment of Different Approaches

In recent years there has been an increasing research effort in estimating regional asymmetric shocks and assessing their importance within the European Monetary Union (EMU). In this chapter we offer an evaluation of the different approaches by distinguishing them according to methodological underpinnings, variables used and pitfalls and potential extensions of the analysis. The structure of this contribution is the following. In section 2 we discuss the relative importance of asymmetric shocks and the main problems connected with their measurement. In section 3 we focus on the explanatory variables which are assumed to determine the asymmetric reaction to shocks and distinguish between sectoral and regional effects. In section 4 we review some of the models that have explicitly measured regional effects within a multivariate econometric context. In section 5 we evaluate the potential offered by alternative frameworks in dealing with the relative shortcomings of the different approaches. Final comments are left to section 6.

Innovative Process and Strategies Orientation in Sicilian SME. A Multidimensional Analysis

In 1959, Penrose highlighted how the firms organisation of economic activity is based on its perception about the adjustment of production to the market, more than on objective evaluation. So, he underlined not just the importance to identify the nature of the determinants of firm behaviour, but also how the assessment of these factors must consider the production context where they originate. Now, this context for Penrose has to be considered as an image in the mind of the entrepreneur of the possibilities and restrictions. In line with this view, and with the recent approach to innovation policies, this work analyses the survey data collected in 2008 on the innovation needs of Sicilian firms, highlighting the stylised facts useful to explain and interpret their innovation choices.