by Stefano Bosi
Few endogenous growth models are able to encompass unbalanced transitional dynamics. In
Barro (1990) public spending is a productive externality and growth is only regular. The second
best tax rate equals the public spending return. We provide a monetary version of Barro (1990),
where short-run fluctuations are due to money and long-run effects to technology. Barro’s rule is
found to be surprisingly robust within transition.
by Salvatore Capasso
Use a two-sector model in which both physical and human capital is employed in the production process, and real money balances function as a Hicks neutral technological factor in the production of physical goods. Even though money has no effect on steady state growth, its inclusion as a production factor forces production parameters to remain within a specific range of values, so that human capital and physical capital grow at different rates. In this model, steady state growth is not influenced (as it usually is) by the parameters by which the willingness to save is determined, such as the rate of time preference or rates of depreciation. Rather, it is determined solely by the form and parameters of the production functions.
by Maria Olivella Rizza
Since Rogoff theorised it, central bank independence has been analysed almost exclusively with the tools of economic science, leading some economists to highlight a contradiction between independence and democracy. Recent contributions introducing political science tools have proposed a rationalisation of monetary conduct in which this contradiction does not hold. This article examines the contributions to the debate of Blinder, Stiglitz and Cama e Pittaluga, whose implicit positions on the neutrality of monetary policy are made explicit. It shows that Central Bank independence can be endorced even if neutrality is not agreed and suggests that independence is to be ascribed in different forms and degrees.
Note e discussioni
by Luigi Campiglio, Alessia Longhi
We draw on a complete data-base for the Italian automotive market which allows to identify
make, model and version for all the vehicles sold, including the main technical characteristics for
each version. The period considered is from January 1998 to March 2002. The main result is that
the official inflation rate, measured on a sample, underestimates the true inflation rate, measured on
the universe. Over the period the official annual inflation rate was +2,1 percent, while our estimate
on the universe was + 5,2 percent. We suggest two explanations: increasing market variety and improved
quality. Our estimates confirm a significant increase in market variety. Inflation rate is
lower in the lower market segments and higher in the higher ones, perhaps not full represented in
the sample. The role of quality is confirmed, but its effective impact on inflation measure is ambiguous.
by Giuliana Parodi
Italy; the part of it which deals with the employment of the disabled is critically discussed in this article.
Attention is drawn on the lack of clarity and on evident inconsistencies within the legislation
itself. A comparison with previous (1999) legislation shows how the rights of the disabled have
now become weaker, especially with respect to rules about placements, threatening the still existing
principle of compulsory hiring. Particularly questionable appears the institution of agents contracting
out jobs to firms which, if applicable to the disabled as well, is likely to reduce the chances of
employment of the severely disabled. Discrimination, both by employers and by colleagues is discussed,
and more attention to proper evaluation of job potential and to difficulties faced in the job
environment is advocated. An example of good practice is described.