Browsing by Author "Andini, Corrado"
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- Evaluating a mobile telecommunications merger in PortugalPublication . Andini, Corrado; Cabral, RicardoThis paper evaluates the impact of the proposed Optimus-TMN mobile telecommunications merger in Portugal. The results suggest that, if the merger would have taken place, the average market profit margin would have increased by 11.6 percentage points and the average market price would have increased by 3.8%. As a consequence, the average marginal cost would have decreased by 14.9%, and welfare would have increased by €163.3mn per year, a gain entirely captured by the producers. Moreover, the merger would have resulted in a large transfer of surplus from consumers to producers, to the tune of €99.5mn per year. The conclusion is that, while the merger could have been authorized on efficiency grounds, such authorization should have been accompanied by strict retail price-cap merger remedies.
- Financial development and long-run growth : is the cross-sectional evidence robust?Publication . Andini, Corrado; Andini, MonicaIn a seminal paper, Levine et al. (2000) provide cross-sectional evidence on the causal positive impact of financial development on the mean of the conditional long-run growth distribution, in a sample of 71 countries. Using the same data-set, we argue that the impact of financial development of the median of the conditional growth distribution is doubtful. In addition, we find that the mean-based results due to Levine et al. (2000) are not robust to the presence of three outliers: Korea (Republic of), Malta and Taiwan.
- How fast do wages adjust to human-capital productivity? Dynamic panel-data evidence from Europe and the United StatesPublication . Andini, CorradoThe standard human-capital model is based on the assumption that the observed wage of an individual is equal to the monetary value of the individual net human-capital productivity, the so-called net potential wage. We argue that this assumption is rejected by micro data for Belgium, Denmark and Finland. The empirical evidence supports a dynamic approach to the Mincer equation where no equality is imposed but an adjustment between observed and potential earnings is allowed to take place over time. Controlling for regressors’ endogeneity and individual unobserved heterogeneity, we estimate a dynamic panel-data wage equation and provide measures of the speed of adjustment in Belgium, Denmark and Finland. Further, we elaborate on the implications of a dynamic approach to the Mincer equation for the computation of the return to schooling, including the implication that the return is not independent of labormarket experience, as suggested by Heckman et al. (2005) and Belzil (2007). Finally, we show that a dynamic wage equation can be seen as the solution of a decentralized wagebargaining model and argue that this model can fit both European and US data better than a simple adjustment model but requires more theoretical assumptions.
- Returns to schooling in a dynamic modelPublication . Andini, CorradoThe paper develops a dynamic approach to Mincer equations. It is shown that a static model is based on the restrictive hypotheses that the total return to schooling is constant over the working life and independent of bargaining issues. A dynamic approach allows to show that the total return to schooling of a new labor-market entrant positively depends on his/her bargaining power as employee; the total return increases at a decreasing rate in the first part of the working life and depends of bargaining issues; afterwards it becomes roughly constant and independent of bargaining. The main implication is that a static model may produce distorted empirical results when using data on young workers since unable to account for the pattern of the total return to schooling in the first part of the working life. I show the latter using data from the U.S. National Longitudinal Survey of Youth (1980-1987) and analyzing the impact of education on within-group wage inequality a la Martins and Pereira (2004a). However, a static model does not produce distorted empirical results when using data on relatively experienced workers. I show the latter using Portuguese data from the European Community Household Panel (1994-2001).
- Teaching Keynes's principle of effective demand and chapter 19Publication . Andini, CorradoThis paper extends a model proposed by Dalziel and Lavoie (2003) and discuss the main difference between Keynes and the neoclassical theory in the extended framework: the consequences of money-wage flexibility.
- Teaching Keynes’s principle of effective demand within the real wage vs. employment spacePublication . Andini, CorradoThis paper reviews several models for teaching Keynes’s principle of effective demand within the real wage vs. employment space and explores a simple extension of a model originally proposed by Lavoie (2003).