- Bürker M., Minerva G.A. (2015) Civic Capital and the Vertical Integration of
Service Provision: Evidence from Italy. Document de travail N° 564, Banque de France, Paris.
Abstract: This paper studies whether civic capital acts an effective restraint against opportunistic behavior in
transactions, looking at the degree of outsourcing to external suppliers of services in Italian firms. Our
results show that, on average, firms tend to outsource more services where civic capital is higher. This
effect is particularly strong for firms operating in industries where businesses can easily adjust the level of
purchased services to their idiosyncratic needs. To address the issue of endogeneity we also instrument the
current stock of civic capital by historical variables. We argue that the rise in the propensity to engage in
transactions with outside service suppliers is evidence of a decrease in the opportunistic behavior between
the parties involved in the transaction.
- Minerva G.A. (2017) Integration versus Outsourcing with Vertical Linkages. Development Studies Working Papers
N° 411, Centro Studi Luca d'Agliano.
Abstract: In the model by Grossman and Helpman (2002) no industry has both vertically integrated and specialized producers
in equilibrium. I generalize their model by assuming that final goods producers (irrespective of whether they are vertically integrated
with the upstream stage or specialized in the downstream stage only) need a basket of differentiated commodities, in addition to labor,
as a fixed requirement for production. I then show the existence of an equilibrium populated simultaneously by vertically integrated and
- Lanzara G., Minerva G.A. (2018) Tourism, amenities, and welfare in an urban setting. Submitted to the Journal of
Abstract: Using data on Italian cities, we document that, over the period 2001 - 2011, the number of establishments and
employment in some key service industries are positively related to the inflow of tourists. We then build a general
equilibrium model of small open cities to study the impact of tourism on endogenous amenities, factors' allocation
across sectors, prices, and welfare. Tourism has two main effects on the urban economy: first, consistently with
the observed pattern in the data, it increases the number of firms (an endogenous consumption amenity) and employment
in the non-tradable sector; second, it increases prices. In the model tourism may hurt the resident population:
with unequal land endowments, poorer residents are hurt by tourism because the rise in city prices offsets the positive
impact on the urban consumption amenity. Along with several other extensions to the baseline model, we study the interplay
of historical (exogenous) amenities, tourism and residents welfare in a system of two cities.