Gaetano Alfredo Minerva -- Working Papers

Recent Working Papers

 
  • 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.

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  • 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 disintegrated firms.

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Works in Progress

 
  • Minerva G.A., The proximity-concentration trade-off with multiproduct multinational firms.

    Abstract: I study the proximity-concentration trade-off faced by two multiproduct multinational firms that operate in two countries under horizontal product differentiation. In this context, characterized by two-way trade and FDI, the trade-off regulates the number of domestic affiliates (concentration) against the number of foreign affiliates (proximity). I show how multinationals' market shares and markups react to changes in trade and investment frictions, and in the degree of product substitutability. Under plausible parameters restrictions, the model is consistent with the stylized fact that, in U.S. and Japan, the number of foreign affiliates is inversely related to the market share held by multinationals in their domestic market.
    Presented at the 9th FIW Research Conference, University of Vienna.


  • Lanzara G., Minerva G.A., Tourism, amenities, and welfare in an urban setting.

    Abstract: In this paper we set up a general equilibrium model of small open cities that are a tourist destination to study the impact of tourism on prices, factor allocations across sectors, endogenous amenities, and welfare. In our model tourism has two main effects on the city economy: first, it increases prices; second, it increases the number of varieties supplied by the non-tradable sector (an endogenous consumption amenity). We find that 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, we study the interplay of historical (exogenous) amenities, tourism and residents welfare in a system of two cities.
    Presented at the 11th Meeting of the Urban Economics Association, Minneapolis.



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