Presentations - PhD students - EM - first year

The Importance of Being Connected: an Assessment of the Effect of Formal Banks-Firm Ties on the Allocation of Resources

Abstract
In the last few years several studies have focused on the beneficial effects of formal bank-firm ties (i.e. when a bank and a firm share one or more directors) in firm’s availability of credit. Although important from a managerial point of view, these studies leave unanswered the question about the macro-effects of formal ties. It is indeed not clear whether bank-firm ties facilitate, are negligible or are detrimental for, the optimal allocation of financings between firms. This is an important issue since misallocation of funds penalizes efficient firms thus dampening a country’s overall growth. The present proposal thus consists in assessing whether the positive effects of formal bank-firm ties on availability of credit results in a misallocation of capital.
The proposed empirical strategy is the following. The effect of formal ties will be estimated through a multiple difference-in-difference in order to deal with the endogeneity issues caused by demand and supply mechanism. Then, the extent of misallocation will be assessed through Oaxaca-Blinder mean decomposition. If misallocation is found, further developments include the evaluation of the impact the misallocation has on efficient firms’ growth rate and surviving.
It is worth noting how this study can not only contribute to the literature on relationships between banks and firm but also have important policy implications.

NUDGE: COMPLEMENT OR A SUBSTITUTE OF TRADITIONAL ENERGY
POLICY INSTRUMENTS?

Abstract

From traditional interventions to nudges, policy makers have a diverse set of strategies to promote citizens’ energy-saving behaviours at their disposal. These policy tools are usually perceived as independent and self-sufficient; however, under some circumstances, a policy mix that integrates nudges and traditional tools can achieve greater impact. Indeed, preliminary literature suggests that, depending on the behavioural bias and on the source of motivation targeted by the specific nudge, interactions with traditional policies can be either positive or
negative. Nevertheless, there is a lack of evidence on the actual interplays between the two set of tools in the energy context. The current work aims to experimentally assess the impact of energy policy mixes which integrate traditional interventions with different nudges.
Specifically, two online experiments are proposed. Study 1 investigates the interplay between tax rebate and goal setting, a nudge that relies on intrinsic motivation and reference-dependent preferences; Study 2 explores how the same traditional policy, tax rebate, interacts with default option, a nudge that leverages on automatic decision-making. Results have both practical and theoretical implications: not only they inform policy makers with guidelines about which policy
mix should be implemented and those which should be avoided; but also, the innovative experimental design contributes to the literature on energy behaviours by simulating energy decisions in a virtual setting.

Feeling in Control: a Study on Learned Helplessness and Intertemporal Decision Making

Abstract
Discrepancies in individual decision-making have been largely associated with the differences in socioeconomic status. Poorer individuals tend to exhibit more impulsiveness and present bias in their decisions. Such decisions as saving, investment in education and health require more future orientation and an ability to deal with uncertainty. Therefore, proximal focus in decision-making can fuel the persistence of status quo. Previous studies have suggested this to be the result of individual time preferences or an eect of stress and scarcity.
This research project aims to employ a learned helplessness paradigm to study proximal focus in decision-making. According to this paradigm, inability to in
uence future leads to a lesser sense of personal control which through time becomes embedded into people's perception of their locus of control. The laboratory experiment will expose participants to dierent types of repeated shocks and give some of them ability to control them. Afterwards, subjects will be asked to do an intertemporal choice task. The experiment will measure both the rate of failure to respond proactively to escapable shocks (due to passive acceptance of lack of control) and the dierences in intertemporal preferences between dierent experimental groups. This study will contribute to the discussion on plasticity of time preferences and perception of control, and the reasons behind the observed present bias in intertemporal decisions.

Redesigning a self-test: instruction framing for the higher user performance

Abstract

While clinical testing has always played the essential role in diagnosis, until recently patient instruction was not considered as one of the key factors of
diagnosis success. Concurrently, instructions have become increasingly crucial for the correct use of rapid self-testers spreading fast since no clinical assistance
is available during the procedure. Given the effects of framing on behavior, selftester instruction has recently been emphasized as a possible source of consumer distraction and the test protocol violation leading to misdiagnosis.
The research aims to focalize and activate positive biases in self-test protocol performance. In this study we run a series of experiments with participants
exposed to self-tests in compliance with inserted instructions. We simulate sociological pressure and track «ex-ante» and «ex-post» skin conductance in order to evaluate interrelations of stress and attention with the protocol performance.
By re-running the experiment with the instruction modified on behaviorallydriven basis, we approach the instruction framing allowing for the higher user
performance.

Employee motivation and job design

Abstract
Worker’s motivation is a key factor determining performance of firms. In a context such as the public sector, the introduction of motivation mechanisms like pay for performance risks undermining the intrinsic motivation of individuals. In fact, people who display high levels of Public Service Motivation are more likely to want to work in public service, and consequently choose an occupation in this sector for its particular mission. However, performance related incentives or bonuses are becoming popular approaches in most countries, even though their impact on
performance displayed so far very mixed results. Nevertheless, governments still seem willing to bear the high costs of such schemes.