Property rights systems and the rule of law

Ronald A. Cass Abstract: Property rights – rights to control, use, or transfer things (broadly conceived) – though not readily distinguished from other rights, comprise a category of rights that both strongly benefit from clear and well-designed legal rules and often are subject to “chiseling” from failures to follow legal rules or from ex post alterations of the rules. Governance systems that limit official discretion to impair property rights, that have institutions and rules that provide clear definition to property rights and that provide predictable and consistent applications of those rights, will accord with the rule of law and generally will also advance social welfare.

Some systems will depart quite evidently from this pattern, to the detriment of those societies, allowing too ready changes in law at the discretion of too few officials, too unconstrained by law, as the example of Zimbabwe illustrates. But differences between the good and the bad will not be drawn along simple, discrete lines, a point made by comparing the Zimbabwe example with the United States.

The systems most consistent with the rule of law will not be able effectively to bar all changes in the law or to eliminate official discretion. Instead, those systems will limit the avenues for change and the ambit of discretion in ways that make property more secure and impositions on it more predictable without reference to the identity of the individual official enforcing the law or the individual property owners subject to it.

Wealth Polarization and Pulverization in Fractal Societies

Fabio Privileggi and Guido Cozzi

Abstract: In this paper we study the geometrical properties of the support of the limit distributions of income/wealth in economies with uninsurable individual risk, and how they are affected by technology and preference parameters and by policy variables.

We work out two simple successive generation models with stochastic human capital accumulation and with R&D and we prove that intense technological progress makes the support of the wealth distribution converge to a fractal Cantor-like set. Such limit distribution implies the disappearance of the middle class, with a “gap” between two polarized wealth clusters that widens as the growth rate becomes higher. Hence, we claim that in a highly meritocratic world in which the payoff of the successful individuals is high enough, and in which social mobility is strong, societies tend to look highly “fractalized”.

We also show that a redistribution scheme financed by proportional taxation does not help cure society’s disconnection/polarization; on the contrary, it might increase it. Finally we show that these results are not confined to our analytically worked out examples but are easily extended to a widely used class of macroeconomic and growth models.
Keywords: Inequality and Growth, Education, Technological Change, Wealth Polarization/Pulverization, Iterated Function System, Attractor, Fractal, Cantor Set, Invariant Distribution

Rendimento BTP Netto: Come Calcolarlo a 5 e 10 anni

I BTP sono titoli di Stato che gli investitori possono acquistare per avere un rendimento. I Buoni del Tesoro Pluriennali (questo il loro nome completo) garantiscono un pagamento dei rendimenti semestrale. Quando si acquista un BTP, generalmente a scadenza di cinque anni, esso ha un determinato valore che va accresciuto nel tempo. Se su quel BTP maturano degli interessi, ogni sei mesi l’investitore percepisce questi interessi.

Ovviamente non è obbligatorio mantenere i BTP fino alla loro scadenza naturale. Essi sono titoli, e come tali sono passibili di compravendita durante tutto il periodo della propria vita. La minima scadenza di un BTP è di 2 anni, la massima è di 30 e si possono vendere e acquistare a seconda del momento. Generalmente chi cerca di vendere lo fa in un momento in cui il mercato è favorevole, per ricavare il più possibile dal singolo titolo, mentre chi acquista vorrebbe farlo in momenti di mercato calante, quando i venditori si devono sbarazzare dei titoli e li svendono a prezzi inferiori.

Giacenza Media Annua, Calcolo su Conto Corrente e Libretto Postale

Il significato del termine giacenza media va ad indicare l’ammontare di soldi presenti su un libretto di risparmio postale o conto corrente bancario in un determinato intervallo temporale, solitamente di un anno. Il calcolo di questo valore serve per alcuni specifici adempimenti dove viene richiesto tra la documentazione da allegare.

I principali documenti per cui serve tale valore sono la DSU, Dichiarazione Sostitutiva Unica, e l’ISEE. La DSU è un documento che contiene i dati di patrimonio, reddito ed anagrafici di un nucleo famigliare. Il modello ISEE invece è l’indicatore della situazione economica equivalente ed è un documento necessario per  l’accesso ad alcune agevolazioni e sostegni di natura assistenziale (iscrizione a scuola, università, servizi di pubblica utilità, affitti ecc.).

Discretionary Power, Rent-Seeking and Corruption

Enrico Colombatto, Univ. di Torino and ICER

Abstract: This article considers corruption as a breach of contract between a principal and an agent. This does not necessarily imply that corruption is immoral, for the nature of the violation actually depends on the features of the underlying contract. In this light, under many circumstances corruption turns out to be a rational and understandable reaction to institutional failures, which are often far from accidental.

To this purpose, three different stylized institutional frameworks are analyzed: developed, undeveloped and transition countries. Contrary to the mainstream approach to corruption, it is here
argued that the origin, scope and consequences of corruption vary significantly across the different frameworks. Normative conclusions should therefore be adjusted accordingly.

Private Property Rights to Wildlife: The Southern African Experiment

Kay Muir-Leresche and Robert H. Nelson†

Abstract: In most nations around the world wildlife are owned and managed by the State. However, in the past 30 years Zimbabwe, Namibia and South Africa have altered their legal regimes to give full control over the use of wildlife to the private owners of the land on which the wildlife are located. Following the privatization of wildlife management in southern African nations, wildlife tourism on private lands has boomed. In Zimbabwe, a majority of many desirable species – including 94 percent of eland, 64 percent of kudu, 63 percent of giraffe, 56 percent of cheetah, and 53 percent of both sable and impala — are found on commercial ranch properties. In Namibia, wildlife populations on private lands have risen by 80 percent since the creation in 1967 of a regime of private wildlife ownership.

Privatization of control over use of wildlife has had more success in promoting biodiversity in the southern African region than any other
policy measure. Other parts of the world may be able to benefit from the lessons learned from the successes of southern African nations in privatization and commercialization of wildlife. Based on the southern African experience, many wildlife managers should reconsider whether positive incentives might not be more effective in the future in promoting wildlife populations than the past club of state commands and controls.

On Money As an Institution

A review essay on Luca Fantacci (2005) La moneta: Storia di un’istituzione mancata (Money: History of a Missing Institution) (Venezia: Biblioteca Marsilio).

Abstract: In this paper I am going to explore some of the major theoretical concepts and ideas in Luca Fantacci’s work devoted to the history of money. As a historical check on Fantacci’s theory I will present various moments in Russian monetary history interpreted in the light of the ideas of the La moneta: storia di un’instituzione mancata. I will compare Fantacci’s theory of division between the unit of account and the medium of exchange with those of Walther Eucken and the Austrian School as well as of some other contemporary authors. A new institutional reading of the evolution of money “money as an institutional compound” is proposed.

Tasso BCE: Cos’è il Tasso Ufficiale di Riferimento della BCE

Quando si parla del Tasso BCE regna una gran confusione. Non si capisce quale Tasso sia, quali conseguenze abbia e molti ignorano persino che la Banca Centrale Europea è un gruppo di banche, anziché una banca sola. Si tratta del cosiddetto Eurosistema finanziario, composto dalle banche centrali di tutti i Paesi che entrano nell’Unione Europea. Quindi, parlando della BCE s’intende una specie di Banca delle Banche Centrali Europee che regola il Tasso per tutti i Paesi. La BCE ha il compito di mantenere la stabilità finanziaria della moneta europea nell’Eurozona.

Tra i principali strumenti per mezzo dei quali la BCE svolge quest’azione regolatrice spicca il Tasso d’interesse della Banca Centrale Europea. Quest’ultimo è anche detto “Tasso refi“, in quanto è relativo alle varie operazioni di rifinanziamento. Si tratta di un indicatore molto significativo, riflettere la situazione economica dell’Unione Europea. Inoltre il Tasso BCE si riflesse particolarmente anche sul consumatore finale. Difatti questo Tasso incide sugli altri tassi interbancari europei, come l’indice Euribor.

La questione del monopolio tra Stato e mercato: un’indagine su Bruno Leoni

Carlo Lottieri
Università di Siena e Icer di Torino
Aprile 2003

Abstract: Il paper prende in esame i principali scritti di Bruno Leoni sul monopolio e sullo Stato, con l’obiettivo di evidenziare come le sue riflessioni sul rapporto tra monopolio ed economia di mercato siano del tutto convergenti con le sue analisi politologiche sul carattere coercitivo dell’apparato statale.

A Mathematical Theory of Evidence For G.L.S. Shakle

Guido Fioretti
Università di Firenze
and
ICER, Torino

Abstract
Evidence Theory is a branch of mathematics that concerns the combination of empirical evidence in an individual’s mind in order to construct a coherent picture of reality. Designed to deal with unexpected empirical evidence suggesting new possibilities, evidence theory has a lot in common with Shackle’s idea of decision-making as a creative act. This essay investigates this connection in detail, pointing to the usefulness of evidence theory to formalise and extend Shackle’s decision theory.