Project acronym ANTEGEFI
Project Analytic Techniques for Geometric and Functional Inequalities
Researcher (PI) Nicola Fusco
Host Institution (HI) UNIVERSITA DEGLI STUDI DI NAPOLI FEDERICO II
Call Details Advanced Grant (AdG), PE1, ERC-2008-AdG
Summary Isoperimetric and Sobolev inequalities are the best known examples of geometric-functional inequalities. In recent years the PI and collaborators have obtained new and sharp quantitative versions of these and other important related inequalities. These results have been obtained by the combined use of classical symmetrization methods, new tools coming from mass transportation theory, deep geometric measure tools and ad hoc symmetrizations. The objective of this project is to further develop thes techniques in order to get: sharp quantitative versions of Faber-Krahn inequality, Gaussian isoperimetric inequality, Brunn-Minkowski inequality, Poincaré and Sobolev logarithm inequalities; sharp decay rates for the quantitative Sobolev inequalities and Polya-Szegö inequality.
Summary
Isoperimetric and Sobolev inequalities are the best known examples of geometric-functional inequalities. In recent years the PI and collaborators have obtained new and sharp quantitative versions of these and other important related inequalities. These results have been obtained by the combined use of classical symmetrization methods, new tools coming from mass transportation theory, deep geometric measure tools and ad hoc symmetrizations. The objective of this project is to further develop thes techniques in order to get: sharp quantitative versions of Faber-Krahn inequality, Gaussian isoperimetric inequality, Brunn-Minkowski inequality, Poincaré and Sobolev logarithm inequalities; sharp decay rates for the quantitative Sobolev inequalities and Polya-Szegö inequality.
Max ERC Funding
600 000 €
Duration
Start date: 2009-01-01, End date: 2013-12-31
Project acronym ASNODEV
Project Aspirations Social Norms and Development
Researcher (PI) Eliana LA FERRARA
Host Institution (HI) UNIVERSITA COMMERCIALE LUIGI BOCCONI
Call Details Advanced Grant (AdG), SH1, ERC-2015-AdG
Summary Development economists and policymakers often face scenarios in which poor people do not make choices that would help them get out of poverty due to an “aspiration failure”: the poor perceive certain goals as unattainable and do not invest towards those goals, thus perpetuating their own state of poverty. The aim of this proposal is to improve our understanding of the relationship between aspirations and socio-economic outcomes of disadvantaged individuals, in order to answer the question: Can we design policy interventions that shift aspirations in a way that is conducive to development?
In addressing the above question a fundamental role is played by social norms and by the ability of individuals to coordinate on “new” aspirations, hence the analysis of social effects is a salient feature of this proposal.
The proposed research is organized in two workpackages. The first focuses on the media as a vehicle for changing aspirations, examining both commercial TV programs and “educational entertainment”. The second workpackage examines “tailored” interventions designed to address specific determinants of aspiration failures (e.g., psychological support to reduce perceived barriers; inter-racial interaction to change stereotypes; institutional reform to strengthen women’s rights and reduce the gender aspiration gap).
The methodology will involve rigorous evaluation of several interventions directly designed to or indirectly affecting aspirations and social norms. Original data collected through survey work, large administrative datasets and media content analysis will be used.
The results of this project will advance our knowledge on the sources of aspiration failures by poor people and on the interplay between aspirations and social norms, eventually opening the avenue for a new array of anti-poverty policies.
Summary
Development economists and policymakers often face scenarios in which poor people do not make choices that would help them get out of poverty due to an “aspiration failure”: the poor perceive certain goals as unattainable and do not invest towards those goals, thus perpetuating their own state of poverty. The aim of this proposal is to improve our understanding of the relationship between aspirations and socio-economic outcomes of disadvantaged individuals, in order to answer the question: Can we design policy interventions that shift aspirations in a way that is conducive to development?
In addressing the above question a fundamental role is played by social norms and by the ability of individuals to coordinate on “new” aspirations, hence the analysis of social effects is a salient feature of this proposal.
The proposed research is organized in two workpackages. The first focuses on the media as a vehicle for changing aspirations, examining both commercial TV programs and “educational entertainment”. The second workpackage examines “tailored” interventions designed to address specific determinants of aspiration failures (e.g., psychological support to reduce perceived barriers; inter-racial interaction to change stereotypes; institutional reform to strengthen women’s rights and reduce the gender aspiration gap).
The methodology will involve rigorous evaluation of several interventions directly designed to or indirectly affecting aspirations and social norms. Original data collected through survey work, large administrative datasets and media content analysis will be used.
The results of this project will advance our knowledge on the sources of aspiration failures by poor people and on the interplay between aspirations and social norms, eventually opening the avenue for a new array of anti-poverty policies.
Max ERC Funding
1 618 125 €
Duration
Start date: 2016-11-01, End date: 2021-10-31
Project acronym BRSCDP-TEA
Project Bounded rationality and social concerns in decision processes: theory, experiments, and applications
Researcher (PI) Massimo Marinacci
Host Institution (HI) UNIVERSITA COMMERCIALE LUIGI BOCCONI
Call Details Advanced Grant (AdG), SH1, ERC-2008-AdG
Summary In the field of economics, individual decision making is the basic building block for studying complex environments such as markets, political systems, and social dynamics. Individual decision making is embodied in the neoclassical economically rational agent, whose only concern is the maximization of utility from his own material consumption. Two qualities of this agent are especially important for the research we will undertake: He has perfect understanding of the problems he faces - today and in the future - and unbounded computational ability to solve them. He also has no regard for the consumption of other members of the society or for their feelings about his actions. Huge empirical and experimental evidence shows that departure from these qualities is robust and significant. The failure of the existing models to incorporate bounded rationality and social concerns has proven critical in socially relevant and complex situations such as lifetime consumption and saving, taxation and expenditure policy, labour search and wage determination. The objective of this project is to bring these phenomena into the framework of neoclassical economics, to test their implications, and to tackle important applications. A novel and central feature of our approach is the attempt to retain the parsimonious methodological approach of economic modelling, which has scored groundbreaking successes in matters such as the design of auctions, markets, contracts, and voting mechanisms. Our project envisions the development of theory on individual decision making, the use of experiments to illuminate and test the theory, and the concrete application of theory - mainly to financial markets. The project will push the frontiers of the understanding of the above mentioned socially relevant situations. The explanatory power of our approach will be guaranteed by the continuous feed-back between theory and evidence- experimental and neuroexperimental, and by a departure from ad hoc modelling.
Summary
In the field of economics, individual decision making is the basic building block for studying complex environments such as markets, political systems, and social dynamics. Individual decision making is embodied in the neoclassical economically rational agent, whose only concern is the maximization of utility from his own material consumption. Two qualities of this agent are especially important for the research we will undertake: He has perfect understanding of the problems he faces - today and in the future - and unbounded computational ability to solve them. He also has no regard for the consumption of other members of the society or for their feelings about his actions. Huge empirical and experimental evidence shows that departure from these qualities is robust and significant. The failure of the existing models to incorporate bounded rationality and social concerns has proven critical in socially relevant and complex situations such as lifetime consumption and saving, taxation and expenditure policy, labour search and wage determination. The objective of this project is to bring these phenomena into the framework of neoclassical economics, to test their implications, and to tackle important applications. A novel and central feature of our approach is the attempt to retain the parsimonious methodological approach of economic modelling, which has scored groundbreaking successes in matters such as the design of auctions, markets, contracts, and voting mechanisms. Our project envisions the development of theory on individual decision making, the use of experiments to illuminate and test the theory, and the concrete application of theory - mainly to financial markets. The project will push the frontiers of the understanding of the above mentioned socially relevant situations. The explanatory power of our approach will be guaranteed by the continuous feed-back between theory and evidence- experimental and neuroexperimental, and by a departure from ad hoc modelling.
Max ERC Funding
1 399 800 €
Duration
Start date: 2009-01-01, End date: 2013-12-31
Project acronym CLEAR
Project Modulating cellular clearance to cure human disease
Researcher (PI) Andrea Ballabio
Host Institution (HI) FONDAZIONE TELETHON
Call Details Advanced Grant (AdG), LS2, ERC-2009-AdG
Summary Cellular clearance is a fundamental process required by all cells in all species. Important physiological processes, such as aging, and pathological mechanisms, such as neurodegeneration, are strictly dependent on cellular clearance. In eukaryotes, most of the cellular clearing processes occur in a specialized organelle, the lysosome. This project is based on a recent discovery, made in our laboratory, of a gene network, which we have named CLEAR, that controls lysosomal biogenesis and function and regulates cellular clearance. The specific goals of the project are: 1) the comprehensive characterization of the mechanisms underlying the CLEAR network, 2) the thorough understanding of CLEAR physiological function at the cellular and organism levels, 3) the development of strategies and tools to modulate cellular clearance, and 4) the implementation of proof-of-principle therapeutic studies based on the activation of the CLEAR network in murine models of human lysosomal storage disorders and of neurodegenerative diseases, such as Alzheimers s and Huntington s diseases. A combination of genomics, bioinformatics, systems biology, chemical genomics, cell biology, and mouse genetics approaches will be used to achieve these goals. Our goal is to develop tools to modulate cellular clearance and to use such tools to develop therapies to cure human disease. The potential medical relevance of this project is very high, particularly in the field of neurodegenerative disease. Therapies that prevent, ameliorate or delay neurodegeneration in these diseases would have a huge impact on human health.
Summary
Cellular clearance is a fundamental process required by all cells in all species. Important physiological processes, such as aging, and pathological mechanisms, such as neurodegeneration, are strictly dependent on cellular clearance. In eukaryotes, most of the cellular clearing processes occur in a specialized organelle, the lysosome. This project is based on a recent discovery, made in our laboratory, of a gene network, which we have named CLEAR, that controls lysosomal biogenesis and function and regulates cellular clearance. The specific goals of the project are: 1) the comprehensive characterization of the mechanisms underlying the CLEAR network, 2) the thorough understanding of CLEAR physiological function at the cellular and organism levels, 3) the development of strategies and tools to modulate cellular clearance, and 4) the implementation of proof-of-principle therapeutic studies based on the activation of the CLEAR network in murine models of human lysosomal storage disorders and of neurodegenerative diseases, such as Alzheimers s and Huntington s diseases. A combination of genomics, bioinformatics, systems biology, chemical genomics, cell biology, and mouse genetics approaches will be used to achieve these goals. Our goal is to develop tools to modulate cellular clearance and to use such tools to develop therapies to cure human disease. The potential medical relevance of this project is very high, particularly in the field of neurodegenerative disease. Therapies that prevent, ameliorate or delay neurodegeneration in these diseases would have a huge impact on human health.
Max ERC Funding
2 100 000 €
Duration
Start date: 2010-03-01, End date: 2015-02-28
Project acronym COMPAT
Project Complex Patterns for Strongly Interacting Dynamical Systems
Researcher (PI) Susanna Terracini
Host Institution (HI) UNIVERSITA DEGLI STUDI DI TORINO
Call Details Advanced Grant (AdG), PE1, ERC-2013-ADG
Summary This project focuses on nontrivial solutions of systems of differential equations characterized by strongly nonlinear interactions. We are interested in the effect of the nonlinearities on the emergence of non trivial self-organized structures. Such patterns correspond to selected solutions of the differential system possessing special symmetries or shadowing particular shapes. We want to understand, from the
mathematical point of view, what are the main mechanisms involved in the aggregation process in terms of the global variational structure of the problem. Following this common thread, we deal with both with the classical N-body problem of Celestial Mechanics, where interactions feature attractive singularities, and competition-diffusion systems, where pattern formation is driven by strongly repulsive forces. More
precisely, we are interested in periodic and bounded solutions, parabolic trajectories with the final intent to build complex motions and possibly obtain the symbolic dynamics for the general N–body problem. On the other hand, we deal with elliptic, parabolic and hyperbolic systems of differential equations with strongly competing interaction terms, modeling both the dynamics of competing populations (Lotka-
Volterra systems) and other interesting physical phenomena, among which the phase segregation of solitary waves of Gross-Pitaevskii systems arising in the study of multicomponent Bose-Einstein condensates. In particular, we will study existence, multiplicity and asymptotic expansions of solutions when the competition parameter tends to infinity. We shall be concerned with optimal partition problems
related to linear and nonlinear eigenvalues
Summary
This project focuses on nontrivial solutions of systems of differential equations characterized by strongly nonlinear interactions. We are interested in the effect of the nonlinearities on the emergence of non trivial self-organized structures. Such patterns correspond to selected solutions of the differential system possessing special symmetries or shadowing particular shapes. We want to understand, from the
mathematical point of view, what are the main mechanisms involved in the aggregation process in terms of the global variational structure of the problem. Following this common thread, we deal with both with the classical N-body problem of Celestial Mechanics, where interactions feature attractive singularities, and competition-diffusion systems, where pattern formation is driven by strongly repulsive forces. More
precisely, we are interested in periodic and bounded solutions, parabolic trajectories with the final intent to build complex motions and possibly obtain the symbolic dynamics for the general N–body problem. On the other hand, we deal with elliptic, parabolic and hyperbolic systems of differential equations with strongly competing interaction terms, modeling both the dynamics of competing populations (Lotka-
Volterra systems) and other interesting physical phenomena, among which the phase segregation of solitary waves of Gross-Pitaevskii systems arising in the study of multicomponent Bose-Einstein condensates. In particular, we will study existence, multiplicity and asymptotic expansions of solutions when the competition parameter tends to infinity. We shall be concerned with optimal partition problems
related to linear and nonlinear eigenvalues
Max ERC Funding
1 346 145 €
Duration
Start date: 2014-02-01, End date: 2019-01-31
Project acronym DEPTH
Project DEsigning new Paths in The differentiation Hyperspace
Researcher (PI) Giovanni Cesareni
Host Institution (HI) UNIVERSITA DEGLI STUDI DI ROMA TOR VERGATA
Call Details Advanced Grant (AdG), LS2, ERC-2012-ADG_20120314
Summary The adult human organism contains heterogeneous reservoirs of pluripotent stem cells characterized by a diversified differentiation potential. Understanding their biology at a system level would advance our ability to selectively activate and control their differentiation potential. Aside from the basic implications this would represent a substantial progress in regenerative medicine by providing a rational framework for using small molecules to control cell trans-determination and reprogramming.
Here we propose a combined experimental and modelling approach to assemble a predictive model of mesoderm stem cell differentiation. Different cell states are identified by a vector in the differentiation hyperspace, the coordinates of the vector being the activation levels of a large number of nodes of a logic model linking the cell signalling network to the transcription regulatory network.
The premise of this proposal is that differentiation is equivalent to rewiring the cell regulatory network as a consequence of induced perturbation of the gene expression program. This process can be rationally controlled by perturbing specific nodes of the signalling network that in turn control transcription factor activation. We will develop this novel strategy using the mesoangioblast ex vivo differentiation system. Mesoangioblasts are one of the many different types of mesoderm stem/progenitor cells that exhibit myogenic potential. Ex vivo, they readily differentiate into striated muscle. However, under appropriate conditions they can also differentiate, into smooth muscle and adipocytes, albeit less efficiently. We will start by assembling, training and optimizing different predictive models for the undifferentiated mesoangioblast. Next by a combination of experiments and modelling approaches we will learn how, by perturbing the signalling models with different inhibitors and activators we can rewire the cell networks to induce trans-determination or reprogramming.
Summary
The adult human organism contains heterogeneous reservoirs of pluripotent stem cells characterized by a diversified differentiation potential. Understanding their biology at a system level would advance our ability to selectively activate and control their differentiation potential. Aside from the basic implications this would represent a substantial progress in regenerative medicine by providing a rational framework for using small molecules to control cell trans-determination and reprogramming.
Here we propose a combined experimental and modelling approach to assemble a predictive model of mesoderm stem cell differentiation. Different cell states are identified by a vector in the differentiation hyperspace, the coordinates of the vector being the activation levels of a large number of nodes of a logic model linking the cell signalling network to the transcription regulatory network.
The premise of this proposal is that differentiation is equivalent to rewiring the cell regulatory network as a consequence of induced perturbation of the gene expression program. This process can be rationally controlled by perturbing specific nodes of the signalling network that in turn control transcription factor activation. We will develop this novel strategy using the mesoangioblast ex vivo differentiation system. Mesoangioblasts are one of the many different types of mesoderm stem/progenitor cells that exhibit myogenic potential. Ex vivo, they readily differentiate into striated muscle. However, under appropriate conditions they can also differentiate, into smooth muscle and adipocytes, albeit less efficiently. We will start by assembling, training and optimizing different predictive models for the undifferentiated mesoangioblast. Next by a combination of experiments and modelling approaches we will learn how, by perturbing the signalling models with different inhibitors and activators we can rewire the cell networks to induce trans-determination or reprogramming.
Max ERC Funding
2 639 804 €
Duration
Start date: 2013-04-01, End date: 2018-09-30
Project acronym DIOPHANTINE PROBLEMS
Project Integral and Algebraic Points on Varieties, Diophantine Problems on Number Fields and Function Fields
Researcher (PI) Umberto Zannier
Host Institution (HI) SCUOLA NORMALE SUPERIORE
Call Details Advanced Grant (AdG), PE1, ERC-2010-AdG_20100224
Summary Diophantine problems have always been a central topic in Number Theory, and have shown deep links with other basic mathematical topics, like Algebraic and Complex Geometry. Our research plan focuses on some issues in this realm, which are strictly interrelated. In the last years the PI and collaborators obtained several results on integral and algebraic points on varieties, which have inspired much subsequent research by others, and which we plan to develop further. In particular:
We plan a further study of integral points on varieties, and applications to Algebraic Dynamics, a possibility which has emerged recently.
We plan to study further the so-called `Unlikely intersections'. This theme contains celebrated issues like the Manin-Mumford conjecture. After work of the PI with Bombieri and Masser in the last 10 years, it has been the object of much recent work and also of new conjectures by R. Pink and B. Zilber. Here a new method has recently emerged in work of the PI with Masser and Pila, which also leads (as shown by Pila) to signi_cant new cases of the Andr_e-Oort conjecture. We intend to pursue in this kind of investigation, exploring further the range of the methods.
Finally, we plan further study of topics of Diophantine Approximation and Hilbert Irreducibility, connected with the above ones in the contents and in the methodology.
Summary
Diophantine problems have always been a central topic in Number Theory, and have shown deep links with other basic mathematical topics, like Algebraic and Complex Geometry. Our research plan focuses on some issues in this realm, which are strictly interrelated. In the last years the PI and collaborators obtained several results on integral and algebraic points on varieties, which have inspired much subsequent research by others, and which we plan to develop further. In particular:
We plan a further study of integral points on varieties, and applications to Algebraic Dynamics, a possibility which has emerged recently.
We plan to study further the so-called `Unlikely intersections'. This theme contains celebrated issues like the Manin-Mumford conjecture. After work of the PI with Bombieri and Masser in the last 10 years, it has been the object of much recent work and also of new conjectures by R. Pink and B. Zilber. Here a new method has recently emerged in work of the PI with Masser and Pila, which also leads (as shown by Pila) to signi_cant new cases of the Andr_e-Oort conjecture. We intend to pursue in this kind of investigation, exploring further the range of the methods.
Finally, we plan further study of topics of Diophantine Approximation and Hilbert Irreducibility, connected with the above ones in the contents and in the methodology.
Max ERC Funding
928 500 €
Duration
Start date: 2011-02-01, End date: 2016-01-31
Project acronym ECONOMICHISTORY
Project Contracts, Institutions, and Markets in Historical Perspective
Researcher (PI) Maristella Botticini
Host Institution (HI) UNIVERSITA COMMERCIALE LUIGI BOCCONI
Call Details Advanced Grant (AdG), SH1, ERC-2011-ADG_20110406
Summary A growing number of scholars are studying the interactions between cultural values, social and religious norms, institutions, and economic outcomes. The rise of markets, as well as the development of contracts that enable mutually beneficial transactions among agents, are one of the central themes in the literature on long-term economic growth.
This project contributes to both strands of literature by studying the invention and development of marine insurance contracts in medieval Italy and their subsequent spread all over Europe. It brings the economic approach to previously unexplored historical data housed in archives in Florence, Genoa, Pisa, Palermo, Prato, and Venice.
The interest in the historical origin and development of marine insurance contracts is twofold. First, marine contracts are the “parents” of all the other insurance contracts (e.g., fire, life, health, etc) that were developed in subsequent centuries to cope with risk. Second, their invention, as well as other innovations in business practices in the Middle Ages, contributed to the growth of international trade in subsequent centuries.
The key novelty of the project stems from combining contract theory with information from thousands of insurance contracts between 1300 and 1550 to explain why marine insurance developed in medieval Italy and then Europe, to study the empirical determinants of insurance contracts in medieval Italy, and to analyze how medieval merchants coped with adverse selection and moral hazard problems.
Most scholars agree that marine insurance was unknown to the ancient world. Italian merchants developed the first insurance contracts and other innovations in business practices during and in the aftermath of the Commercial Revolution that swept Europe from roughly 1275 to about 1325. Marine insurance contracts may have developed as a spin-off of earlier contracts which shifted the risk from one party to another (e.g., sea loan, insurance loan). Alternatively, in the early or mid-fourteenth century, sedentary merchants that provided the capital to travelling merchants invented a new type of contract, when they discovered that the existing contract forms had shortcomings in transferring and dividing sea risk.
A sample of the questions that this project will address includes:
- Why did insurance contracts and a marine insurance market first develop in medieval times and not earlier despite merchants had to deal with the risks associated with maritime trade since antiquity?
- What were the empirical determinants of contract form (e.g., insurance premium) in the medieval insurance market?
- How did medieval merchants compute insurance premia without having the formal notion of probability that was developed only in the mid-seventeenth century?
- How did medieval merchants cope with the typical problems that plague insurance markets, i.e., adverse selection and moral hazard?
Summary
A growing number of scholars are studying the interactions between cultural values, social and religious norms, institutions, and economic outcomes. The rise of markets, as well as the development of contracts that enable mutually beneficial transactions among agents, are one of the central themes in the literature on long-term economic growth.
This project contributes to both strands of literature by studying the invention and development of marine insurance contracts in medieval Italy and their subsequent spread all over Europe. It brings the economic approach to previously unexplored historical data housed in archives in Florence, Genoa, Pisa, Palermo, Prato, and Venice.
The interest in the historical origin and development of marine insurance contracts is twofold. First, marine contracts are the “parents” of all the other insurance contracts (e.g., fire, life, health, etc) that were developed in subsequent centuries to cope with risk. Second, their invention, as well as other innovations in business practices in the Middle Ages, contributed to the growth of international trade in subsequent centuries.
The key novelty of the project stems from combining contract theory with information from thousands of insurance contracts between 1300 and 1550 to explain why marine insurance developed in medieval Italy and then Europe, to study the empirical determinants of insurance contracts in medieval Italy, and to analyze how medieval merchants coped with adverse selection and moral hazard problems.
Most scholars agree that marine insurance was unknown to the ancient world. Italian merchants developed the first insurance contracts and other innovations in business practices during and in the aftermath of the Commercial Revolution that swept Europe from roughly 1275 to about 1325. Marine insurance contracts may have developed as a spin-off of earlier contracts which shifted the risk from one party to another (e.g., sea loan, insurance loan). Alternatively, in the early or mid-fourteenth century, sedentary merchants that provided the capital to travelling merchants invented a new type of contract, when they discovered that the existing contract forms had shortcomings in transferring and dividing sea risk.
A sample of the questions that this project will address includes:
- Why did insurance contracts and a marine insurance market first develop in medieval times and not earlier despite merchants had to deal with the risks associated with maritime trade since antiquity?
- What were the empirical determinants of contract form (e.g., insurance premium) in the medieval insurance market?
- How did medieval merchants compute insurance premia without having the formal notion of probability that was developed only in the mid-seventeenth century?
- How did medieval merchants cope with the typical problems that plague insurance markets, i.e., adverse selection and moral hazard?
Max ERC Funding
1 113 900 €
Duration
Start date: 2012-07-01, End date: 2018-06-30
Project acronym ESEMO
Project Estimation of General Equilibrium Labor Market Search Models
Researcher (PI) Claudio Michelacci
Host Institution (HI) Istituto Einaudi per l'Economia e la Finanza
Call Details Advanced Grant (AdG), SH1, ERC-2011-ADG_20110406
Summary "My proposal deals with the estimation of Dynamic Stochastic General Equilibrium models with important heterogeneity at the level of firms and households and frictions in the labor market. In the estimation I will exploit mixed frequency data (monthly, quarterly and annual) available in different countries. I will also efficiently take care of possible missing values in the data. This might require developing new estimation techniques. The contribution of the project will be in dealing with important empirically relevant questions. I will address issues that lie at the boundaries between labour economics, business cycle analysis, monetary economics, finance, and growth. In particular I will answer the following questions:
1. How are business cycle costs distributed across different individuals? How costly is involuntary unemployment?
2. Which view best characterizes the process of technology adoption at business cycle frequencies? In particular does Schumpeterian creative destruction play a role in characterizing the adoption of new technologies over the business cycle?
3. What are the welfare costs of the search inefficiencies present in the process of worker reallocation over the business cycle?
4. What are the sources of business cycle fluctuations? And in particular are technology shocks an important driving force?
5. What are the contribution of the job separation rate and the importance of the intensive margin relative to the extensive margin in characterizing aggregate labor market fluctuations?
6. What are the main differences in the cyclical properties of the labor market across the OECD? And which institutions explain these differences?
7. What are the effects of financial sector shocks? And why has the Beveridge curve shifted during the last world wide recession?
8. How policy should respond to the large variation in unemployment risk that individual workers face over their life cycle?"
Summary
"My proposal deals with the estimation of Dynamic Stochastic General Equilibrium models with important heterogeneity at the level of firms and households and frictions in the labor market. In the estimation I will exploit mixed frequency data (monthly, quarterly and annual) available in different countries. I will also efficiently take care of possible missing values in the data. This might require developing new estimation techniques. The contribution of the project will be in dealing with important empirically relevant questions. I will address issues that lie at the boundaries between labour economics, business cycle analysis, monetary economics, finance, and growth. In particular I will answer the following questions:
1. How are business cycle costs distributed across different individuals? How costly is involuntary unemployment?
2. Which view best characterizes the process of technology adoption at business cycle frequencies? In particular does Schumpeterian creative destruction play a role in characterizing the adoption of new technologies over the business cycle?
3. What are the welfare costs of the search inefficiencies present in the process of worker reallocation over the business cycle?
4. What are the sources of business cycle fluctuations? And in particular are technology shocks an important driving force?
5. What are the contribution of the job separation rate and the importance of the intensive margin relative to the extensive margin in characterizing aggregate labor market fluctuations?
6. What are the main differences in the cyclical properties of the labor market across the OECD? And which institutions explain these differences?
7. What are the effects of financial sector shocks? And why has the Beveridge curve shifted during the last world wide recession?
8. How policy should respond to the large variation in unemployment risk that individual workers face over their life cycle?"
Max ERC Funding
1 659 169 €
Duration
Start date: 2012-03-01, End date: 2017-02-28
Project acronym EUROPOPULISM
Project European Integration, Populism and European Cities
Researcher (PI) Guido Enrico TABELLINI
Host Institution (HI) UNIVERSITA COMMERCIALE LUIGI BOCCONI
Call Details Advanced Grant (AdG), SH1, ERC-2016-ADG
Summary Why is it so difficult to achieve further European political integration? This question motivates the first part of the project. The standard approach in economics presumes that integration of countries reflects a tradeoff between economic benefits and the cost of cultural heterogeneity. To assess this tradeoff, we exploit survey data to quantify cultural heterogeneity within and between EU countries, comparing it to the US. We also investigate time variation, to assess whether economic integration led to cultural convergence. Finally, exploiting regional variation, we seek to identify a cultural core and compare it to the economic core of the EU. We conjecture the following conclusion: although European economic integration has not led to cultural convergence, the primary obstacle to integration is not cultural heterogeneity per se, but the presence of other barriers, such as national identities or national institutions, which amplify its effects.
The second part of the project studies the causes and implications of two related phenomena: the diffusion of nationalism and of political populism, with behavioral voters. We study nationalism as endogenous identification with one’s nation, and analyze how it interacts with political institutions and political processes in a setting of international policy coordination. We study populism as due to the reaction of disappointed voters who behave according to Prospect theory. Our main goal is to explain these behavioral phenomena, and to derive predictions about the effect of institutional reforms.
The third part of the project examines Europe in the very long run. It studies the formation of clusters of creative élites within Europe, in a historical perspective. The main goal is to explain how local self-government institutions and the migration of upper tail human capital between different European cities contributed to the formation of clusters of innovation and creativity in the XI-XIX centuries.
Summary
Why is it so difficult to achieve further European political integration? This question motivates the first part of the project. The standard approach in economics presumes that integration of countries reflects a tradeoff between economic benefits and the cost of cultural heterogeneity. To assess this tradeoff, we exploit survey data to quantify cultural heterogeneity within and between EU countries, comparing it to the US. We also investigate time variation, to assess whether economic integration led to cultural convergence. Finally, exploiting regional variation, we seek to identify a cultural core and compare it to the economic core of the EU. We conjecture the following conclusion: although European economic integration has not led to cultural convergence, the primary obstacle to integration is not cultural heterogeneity per se, but the presence of other barriers, such as national identities or national institutions, which amplify its effects.
The second part of the project studies the causes and implications of two related phenomena: the diffusion of nationalism and of political populism, with behavioral voters. We study nationalism as endogenous identification with one’s nation, and analyze how it interacts with political institutions and political processes in a setting of international policy coordination. We study populism as due to the reaction of disappointed voters who behave according to Prospect theory. Our main goal is to explain these behavioral phenomena, and to derive predictions about the effect of institutional reforms.
The third part of the project examines Europe in the very long run. It studies the formation of clusters of creative élites within Europe, in a historical perspective. The main goal is to explain how local self-government institutions and the migration of upper tail human capital between different European cities contributed to the formation of clusters of innovation and creativity in the XI-XIX centuries.
Max ERC Funding
1 276 250 €
Duration
Start date: 2017-10-01, End date: 2022-09-30