Title:Financial Literacy and Portfolio Diversification
Author(s):GUISO, Luigi; JAPPELLI, TullioDate:2008Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:In this paper we focus on poor financial literacy as one potential factor explaining lack of portfolio diversification. We use the 2007 Unicredit Customers’ Survey, which has indicators of portfolio choice, financial ...
Title:Risk Aversion, Wealth, and Background Risk
Author(s):GUISO, Luigi; PAIELLA, MonicaDate:2008Type of Publication:ArticleAbstract:We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay for a risky security. We relate this measure to consumer's endowments and attributes ...
Title:Long Term Persistence
Author(s):GUISO, Luigi; SAPIENZA, Paola; ZINGALES, LuigiDate:2008Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:Is social capital long lasting? Does it affect long term economic performance? To answer these questions we test Putnam’s conjecture that today marked differences in social capital between the North and South of Italy were ...
Title:Matching Firms, Managers and Incentives
Author(s):BANDIERA, Oriana; GUISO, Luigi; PRAT, Andrea; SADUN, RaffaellaDate:2008Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We provide evidence on the match between firms, managers and incentives using a new survey designed for this purpose. The survey contains information on a sample of executives’ risk preferences and human capital, on the ...
Title:Risk Aversion, Wealth, and Background Risk
Author(s):GUISO, Luigi; PAIELLA, MonicaDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a consumer is willing to pay for a risky security. We relate this measure to consumers.endowments and attributes ...
Title:The Cost of Banking Regulation
Author(s):GUISO, Luigi; SAPIENZA, Paola; ZINGALES, LuigiDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We use exogenous variation in the degree of restrictions to bank competition across Italian provinces to
study both the effects of bank regulation and the impact of deregulation. We find that where entry was
more restricted ...
Title:What Determines Entrepreneurial Clusters?
Author(s):GUISO, Luigi; SCHIVARDI, FabianoDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:We contrast two potential explanations of the substantial differences in entrepreneurial activity observed across geographical areas: entry costs and external effects. We extend the Lucas model of entrepreneurship to allow ...
Title:Cultural Biases in Economic Exchange?
Author(s):GUISO, Luigi; SAPIENZA, Paola; ZINGALES, LuigiDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:How much do cultural biases affect economic exchange? We try to answer this question
by using the relative trust European citizens have for citizens of other countries. First,
we document that this trust is affected not ...
Title:Labor Adjustment: Disentangling Firing and Mobility Costs
Author(s):GUISO, Luigi; SAPIENZA, Paola; ZINGALES, LuigiDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:This paper studies the costs of adjusting employment, distinguishing between firms’
firing and workers’ mobility costs. We construct a simple dynamic general equilibrium
model of labor demand and supply and show that ...
Title:The Structure of Multiple Credit Relationships: Evidence from US Firm
Author(s):GUISO, Luigi; MINNETTI, RaulDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:When firms borrow from multiple concentrated creditors such as banks they appear
to differentiate their allocation of borrowing. In this paper, we put forward
hypotheses for this borrowing pattern based on incomplete ...
Title:Spillovers in Industrial Districts
Author(s):GUISO, Luigi; SCHIVARDI, FabianoDate:2007Type of Publication:ArticleAbstract:We study the role of social interaction (SI) in determining firms’ employment adjustments in industrial districts. We assume that SI matters only among firms that are both similar and geographically close. Our first test ...
Title:Social Capital as Good Culture
Author(s):GUISO, Luigi; SAPIENZA, Paola; ZINGALES, LuigiDate:2007Type of Publication:Working PaperSeries/Report no.:EUI ECOAbstract:To explain the extremely long-term persistence (more than 500 years) of positive
historical experiences of cooperation (Putnam, 1993), we model the intergenerational
transmission of priors about the trustworthiness of ...