Marco Spallone | Università degli Studi "G. d'Annunzio" Chieti Pescara (original) (raw)

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Papers by Marco Spallone

Research paper thumbnail of Incentives to Entrepreneurs in the Revised Italian Corporate Law: an Economic and Juridical Analisys

Research paper thumbnail of New Venture Investment: Choices and Consequences

RIVISTA DI POLITICA ECONOMICA, Jan 1, 2005

In molte delle storie di rapido e straordinario successo che hanno caratterizzato la seconda metà... more In molte delle storie di rapido e straordinario successo che hanno caratterizzato la seconda metà degli anni '90 negli USA ha svolto un ruolo determinante la partecipazione al progetto imprenditoriale di investitori istituzionali nel capitale di rischio, specializzati nella valutazione delle idee e delle prospettive di mercato, nella formulazione di strategie di crescita e nel controllo della loro attuazione: i cosiddetti venture capitalists. Pur rimanendo l'uso di questa tipologia di fonti finanziarie marginale anche nei paesi più avanzati (il peso degli investimenti effettuati da società di venture capital non ha mai superato l'1,2% e lo 0,8% del PIL, rispettivamente, negli USA e nel Regno Unito), anche importanti aziende high-tech come Apple, Intel, Microsoft, Netscape e Sun hanno beneficiato dell'assistenza e della partecipazione di società di venture capital. Lo stesso fenomeno ha riguardato imprese di servizi come Federal Express o Starbuck. Alla fine degli anni novanta, i risultati di alcune ricerche su un campione di oltre 2.000 imprese compartecipate da questa tipologia di investitore istitu-337 * Elsevier, Amsterdam, 2003. ** <gdg@luiss.it>; <mspallone@luiss.it>. 1 Le riflessioni stimolate dalla lettura del volume qui recensito si inquadrano in una più ampia attività di ricerca sul tema del ruolo della finanza e del private equity nello sviluppo economico, finanziata con fondi MIUR, COFIN 2004.

Research paper thumbnail of An experimental investigation on optimal bankruptcy laws

European Journal of Law and Economics, Jan 1, 2010

Abstract We performed an experimental investigation to assess whether the ''restricted ... more Abstract We performed an experimental investigation to assess whether the ''restricted auction'' mechanism proposed by Berkovitch, Israel and Zender in 1997 works effectively as an optimal bankruptcy law or not. An optimal bankruptcy law is a commitment device that ...

Research paper thumbnail of Three Essays on Credit Market: The Case of Small and Medium Size Firms

Research paper thumbnail of Choosing a gambling partner: testing a model of mutual insurance in the lab

Theory and Decision, Jan 1, 2011

In this paper we investigate how economic agents choose gambling partners and how paired risky ch... more In this paper we investigate how economic agents choose gambling partners and how paired risky choices di¤er from individual ones. To this aim we develop a simple model and design a laboratory experiment that allows us to compare individual versus paired decisions across two treatments where pairs are respectively exogenously and endogenously formed. In both treatments paired subjects decide individually and indipendently how to allocate their wealth over a portfolio of lotteries and fully commit to share any winnings. The main result from our experiment is that whenever agents are allowed to choose a gambling partner they decide to team up with other agents who display the same degree of risk aversion as themselves. Moreover paired choices consistentlty involve higher risk taking than individual choices. This …nding is more evident when information on subjects'risk attitudes is made available and when subjects team up in homogeneous pairs, thereby con…rming that subjects successfully exploit the bene…ts of mutual insurance. 5 Becker's (1993) marriage model shows how partners of similar quality are matched together; Kremer's (1993) O-Ring production function results in workers of the same skill being matched together; in the context of micro…nance, shows that borrowers of the same probability of success match together in group lending; Sadoulet (2000) predicts some heterogeneous matching when individuals are risk averse; and investigate whether individuals match assortatively along risk preferences in the context of insurance games …nding no evidence of it.

Research paper thumbnail of SMEs and the challenge to go public: evidence from a recent survey

Working Papers …, Jan 1, 2012

Research paper thumbnail of Relaxing Liquidity Constraints for Start-Ups: A Welfare Analysis Over the Italian Revised Corporate Law

European Journal of Law and Economics, Jan 1, 2005

This paper analyzes the welfare effects of the recently revised Italian corporate law, that allow... more This paper analyzes the welfare effects of the recently revised Italian corporate law, that allows limited liability companies (so called società a responsabilità limitata) to replace the fulfillment of strict capital requirements with the subscription of insurance contracts that make capital available in case of default. We find that such insurance contracts are not convenient for insurers. However, if a benevolent planner is willing to subsidize insurers' expected losses, these contracts turn out to be welfare improving for a wide range of the relevant parameters. By calibrating the model with Italian data, we find that social welfare is maximized when the premium charged by the subsidized insurance companies is about 10% of total capital requirements; moreover, in this case the planner faces negligible expected losses.

Research paper thumbnail of Are Bankruptcy laws able to provide entrepreneurs with the right incentives?

Review of Law & Economics, Jan 1, 2008

Research paper thumbnail of An Investigation of the Strategic Implications of Environmental Monitoring

Working Papers CASMEF, Jan 1, 2011

A firm's decision of obeying environmental regulatory standards depends crucially on its chan... more A firm's decision of obeying environmental regulatory standards depends crucially on its chances of being detected and on the costs it must bear in case of detection. We investigate the relationship between the amount of resources devoted to environmental monitoring and the extent of ...

Research paper thumbnail of Do Bankruptcy Laws Provide Optimal Incentives to Entrepreneurs? Experimental Evidence

Most of the existing bankruptcy laws distort managerial incentives. The aim of this paper is to t... more Most of the existing bankruptcy laws distort managerial incentives. The aim of this paper is to test whether the "restricted auction" mechanism proposed by Berkovitch, is an optimal bankruptcy law, that is a commitment device that implements both ex ante and ex post efficiency in firm-specific investment decisions when moral hazard is binding. In order to do that, we ran a computerized experiment on a sample of 150 undergraduate students at LUISS Guido Carli University of Rome. We concluded that on average the restricted auction mechanism was able to direct more effort toward entrepreneurial activities than any unrestricted auction mechanism.

Research paper thumbnail of Investigating the determinants of pretrial settlement rates: contingent versus non-contingent lawyers' fees

European Journal of Law and Economics, Jan 1, 2007

In this paper, we explore the possibility that the percentage of litigations settled before getti... more In this paper, we explore the possibility that the percentage of litigations settled before getting to court is affected 1) by the degree of contingency of lawyers' fees and 2) by the possibility of shifting lawyers' fees to the losing counterpart. In our view, a litigation is a game where not only the plaintiff and the defendant, but also their lawyers are independent players. The main consequence of this assumption is that the authority to settle is allocated endogenously to either the clients or their lawyers, depending on the value of the relevant parameters. In this game theoretical setup, 1) we show that only the degree of contingency of lawyers' fees affects pretrial settlement rates, while cost shifting rules have no effect, and 2) we state the conditions under which non-contingent lawyers' fees provide better incentives to settle than contingent ones. JEL Classification Code: K0, K4

Research paper thumbnail of «Bankruptcy Laws: Optimal Incentives to Entrepreneurs»

Economia, Società e …, Jan 1, 2004

Most of the existing bankruptcy laws distort managerial incentives. The aim of this paper is to t... more Most of the existing bankruptcy laws distort managerial incentives. The aim of this paper is to test whether the "restricted auction" mechanism proposed by Berkovitch, Israel and Zender (1997) is an optimal bankruptcy law, that is a commitment device that implements both ex ante and ex post efficiency in firm-specific investment decisions when moral hazard is binding. In order to do that, we ran a computerized experiment on a sample of 125 undergraduate students at LUISS Guido Carli University of Rome. We concluded that on average the restricted auction mechanism was able to direct more effort toward entrepreneurial activities than any unrestricted auction mechanism.

Chapters by Marco Spallone

Research paper thumbnail of The Economic Impact of EU Competitiveness Programs on Italian SMEs

The Restructuring of Banks and Financial Systems in the Euro Area and the Financing of SMEs. ISBN: 9781137518729, May 2015

The 2007-2009 financial crisis has had a worldwide impact on banks and financial systems. It has ... more The 2007-2009 financial crisis has had a worldwide impact on banks and financial systems. It has also brought about major changes in Europe's financial regulatory framework that could lead to financing problems for SMEs. The book collects some original contributions on these issues, dealing with the alternative proposals to separate banking activities, the ways out from the banking regulatory bubble, analysis of monetary policy in the Euro Area, the effects of the financial crisis on the European banks, the road map towards the European Banking Union and the risk it entails, the new financing conditions of Small and Medium-Sized Enterprises in Europe, the credit crunch and long-term finance for economic growth, and, finally, the new kinds of financial instruments available to SMEs today.

Research paper thumbnail of Incentives to Entrepreneurs in the Revised Italian Corporate Law: an Economic and Juridical Analisys

Research paper thumbnail of New Venture Investment: Choices and Consequences

RIVISTA DI POLITICA ECONOMICA, Jan 1, 2005

In molte delle storie di rapido e straordinario successo che hanno caratterizzato la seconda metà... more In molte delle storie di rapido e straordinario successo che hanno caratterizzato la seconda metà degli anni '90 negli USA ha svolto un ruolo determinante la partecipazione al progetto imprenditoriale di investitori istituzionali nel capitale di rischio, specializzati nella valutazione delle idee e delle prospettive di mercato, nella formulazione di strategie di crescita e nel controllo della loro attuazione: i cosiddetti venture capitalists. Pur rimanendo l'uso di questa tipologia di fonti finanziarie marginale anche nei paesi più avanzati (il peso degli investimenti effettuati da società di venture capital non ha mai superato l'1,2% e lo 0,8% del PIL, rispettivamente, negli USA e nel Regno Unito), anche importanti aziende high-tech come Apple, Intel, Microsoft, Netscape e Sun hanno beneficiato dell'assistenza e della partecipazione di società di venture capital. Lo stesso fenomeno ha riguardato imprese di servizi come Federal Express o Starbuck. Alla fine degli anni novanta, i risultati di alcune ricerche su un campione di oltre 2.000 imprese compartecipate da questa tipologia di investitore istitu-337 * Elsevier, Amsterdam, 2003. ** <gdg@luiss.it>; <mspallone@luiss.it>. 1 Le riflessioni stimolate dalla lettura del volume qui recensito si inquadrano in una più ampia attività di ricerca sul tema del ruolo della finanza e del private equity nello sviluppo economico, finanziata con fondi MIUR, COFIN 2004.

Research paper thumbnail of An experimental investigation on optimal bankruptcy laws

European Journal of Law and Economics, Jan 1, 2010

Abstract We performed an experimental investigation to assess whether the ''restricted ... more Abstract We performed an experimental investigation to assess whether the ''restricted auction'' mechanism proposed by Berkovitch, Israel and Zender in 1997 works effectively as an optimal bankruptcy law or not. An optimal bankruptcy law is a commitment device that ...

Research paper thumbnail of Three Essays on Credit Market: The Case of Small and Medium Size Firms

Research paper thumbnail of Choosing a gambling partner: testing a model of mutual insurance in the lab

Theory and Decision, Jan 1, 2011

In this paper we investigate how economic agents choose gambling partners and how paired risky ch... more In this paper we investigate how economic agents choose gambling partners and how paired risky choices di¤er from individual ones. To this aim we develop a simple model and design a laboratory experiment that allows us to compare individual versus paired decisions across two treatments where pairs are respectively exogenously and endogenously formed. In both treatments paired subjects decide individually and indipendently how to allocate their wealth over a portfolio of lotteries and fully commit to share any winnings. The main result from our experiment is that whenever agents are allowed to choose a gambling partner they decide to team up with other agents who display the same degree of risk aversion as themselves. Moreover paired choices consistentlty involve higher risk taking than individual choices. This …nding is more evident when information on subjects'risk attitudes is made available and when subjects team up in homogeneous pairs, thereby con…rming that subjects successfully exploit the bene…ts of mutual insurance. 5 Becker's (1993) marriage model shows how partners of similar quality are matched together; Kremer's (1993) O-Ring production function results in workers of the same skill being matched together; in the context of micro…nance, shows that borrowers of the same probability of success match together in group lending; Sadoulet (2000) predicts some heterogeneous matching when individuals are risk averse; and investigate whether individuals match assortatively along risk preferences in the context of insurance games …nding no evidence of it.

Research paper thumbnail of SMEs and the challenge to go public: evidence from a recent survey

Working Papers …, Jan 1, 2012

Research paper thumbnail of Relaxing Liquidity Constraints for Start-Ups: A Welfare Analysis Over the Italian Revised Corporate Law

European Journal of Law and Economics, Jan 1, 2005

This paper analyzes the welfare effects of the recently revised Italian corporate law, that allow... more This paper analyzes the welfare effects of the recently revised Italian corporate law, that allows limited liability companies (so called società a responsabilità limitata) to replace the fulfillment of strict capital requirements with the subscription of insurance contracts that make capital available in case of default. We find that such insurance contracts are not convenient for insurers. However, if a benevolent planner is willing to subsidize insurers' expected losses, these contracts turn out to be welfare improving for a wide range of the relevant parameters. By calibrating the model with Italian data, we find that social welfare is maximized when the premium charged by the subsidized insurance companies is about 10% of total capital requirements; moreover, in this case the planner faces negligible expected losses.

Research paper thumbnail of Are Bankruptcy laws able to provide entrepreneurs with the right incentives?

Review of Law & Economics, Jan 1, 2008

Research paper thumbnail of An Investigation of the Strategic Implications of Environmental Monitoring

Working Papers CASMEF, Jan 1, 2011

A firm's decision of obeying environmental regulatory standards depends crucially on its chan... more A firm's decision of obeying environmental regulatory standards depends crucially on its chances of being detected and on the costs it must bear in case of detection. We investigate the relationship between the amount of resources devoted to environmental monitoring and the extent of ...

Research paper thumbnail of Do Bankruptcy Laws Provide Optimal Incentives to Entrepreneurs? Experimental Evidence

Most of the existing bankruptcy laws distort managerial incentives. The aim of this paper is to t... more Most of the existing bankruptcy laws distort managerial incentives. The aim of this paper is to test whether the "restricted auction" mechanism proposed by Berkovitch, is an optimal bankruptcy law, that is a commitment device that implements both ex ante and ex post efficiency in firm-specific investment decisions when moral hazard is binding. In order to do that, we ran a computerized experiment on a sample of 150 undergraduate students at LUISS Guido Carli University of Rome. We concluded that on average the restricted auction mechanism was able to direct more effort toward entrepreneurial activities than any unrestricted auction mechanism.

Research paper thumbnail of Investigating the determinants of pretrial settlement rates: contingent versus non-contingent lawyers' fees

European Journal of Law and Economics, Jan 1, 2007

In this paper, we explore the possibility that the percentage of litigations settled before getti... more In this paper, we explore the possibility that the percentage of litigations settled before getting to court is affected 1) by the degree of contingency of lawyers' fees and 2) by the possibility of shifting lawyers' fees to the losing counterpart. In our view, a litigation is a game where not only the plaintiff and the defendant, but also their lawyers are independent players. The main consequence of this assumption is that the authority to settle is allocated endogenously to either the clients or their lawyers, depending on the value of the relevant parameters. In this game theoretical setup, 1) we show that only the degree of contingency of lawyers' fees affects pretrial settlement rates, while cost shifting rules have no effect, and 2) we state the conditions under which non-contingent lawyers' fees provide better incentives to settle than contingent ones. JEL Classification Code: K0, K4

Research paper thumbnail of «Bankruptcy Laws: Optimal Incentives to Entrepreneurs»

Economia, Società e …, Jan 1, 2004

Most of the existing bankruptcy laws distort managerial incentives. The aim of this paper is to t... more Most of the existing bankruptcy laws distort managerial incentives. The aim of this paper is to test whether the "restricted auction" mechanism proposed by Berkovitch, Israel and Zender (1997) is an optimal bankruptcy law, that is a commitment device that implements both ex ante and ex post efficiency in firm-specific investment decisions when moral hazard is binding. In order to do that, we ran a computerized experiment on a sample of 125 undergraduate students at LUISS Guido Carli University of Rome. We concluded that on average the restricted auction mechanism was able to direct more effort toward entrepreneurial activities than any unrestricted auction mechanism.

Research paper thumbnail of The Economic Impact of EU Competitiveness Programs on Italian SMEs

The Restructuring of Banks and Financial Systems in the Euro Area and the Financing of SMEs. ISBN: 9781137518729, May 2015

The 2007-2009 financial crisis has had a worldwide impact on banks and financial systems. It has ... more The 2007-2009 financial crisis has had a worldwide impact on banks and financial systems. It has also brought about major changes in Europe's financial regulatory framework that could lead to financing problems for SMEs. The book collects some original contributions on these issues, dealing with the alternative proposals to separate banking activities, the ways out from the banking regulatory bubble, analysis of monetary policy in the Euro Area, the effects of the financial crisis on the European banks, the road map towards the European Banking Union and the risk it entails, the new financing conditions of Small and Medium-Sized Enterprises in Europe, the credit crunch and long-term finance for economic growth, and, finally, the new kinds of financial instruments available to SMEs today.