Participation exemption and tax arbitrage: Italy’s case

This paper studies how participation exemption (PEX) tax rules for stocks owned by companies, which are frequent in EU countries, introduce tax arbitrage opportunities. The focus is on Italy’s PEX rules. PEX enables companies to make manufactured loans that generate tax exempt interest income by combining stocks with forwards or options. Borrowing through similar manufactured loans allows companies to bypass restrictions to deducting the cost of borrowing. PEX induced arbitrage exploitable through stock and options portfolios is available even when put-call parity holds for European options. Derivatives that hedge a stock can “inherit” the PEX regime of the stock they hedge. PEX gives companies that own a stock a tax timing option, which can be exploited through stock straddle strategies, i.e. long-short positions in the same stock, and which can generate valuable tax savings.     

Deciding who will decide: Assessing random selection for participants in Edmonton's Citizen Panel on budget priorities

Selecting participants is a key component in the design, operation, and outcomes of public‐deliberation events to reflect the diversity of opinion in the larger public. This article examines how the City of Edmonton selected the members of its Citizen Panel on budget priorities in 2009 to inform Edmonton's 2010–2011 budget. The organizers relied on random selection stratified by gender, age, length of residence in the city, educational attainment, and income. This article also reports on the findings from pre‐event and post‐event public‐opinion surveys sent to 5,000 citizens. It argues that the selection method for the Citizen Panel was justified because there were distinct views on key issues among different groups of citizens.     

In search of a post-hegemonic order: Germany,NATO and the European security and defence policy

This article explores the erosion of the conditions which supported Germany's emergence as a ‘Civilian Power’, in particular fundamental changes in the US perspective on the transatlantic relationship and international security, but also the increased sensitivity of German foreign policy to domestic circumstances. It explores Germany's so far ambivalent and inconsistent role in the pursuit of a post-hegemonic order for Euro-Atlantic security, focusing in particular on the emerging European Security and Defence Policy.     

Governing by contract as a way to reduce crime? An impact evaluation of the large-scale policy of security pacts

Policy Sciences - In the last decades, governing by contracts, and in particular security contracts and pacts, has been increasingly promoted as a principal means of advancing crime prevention and...     

Using the Results from Rigorous Multisite Evaluations to Inform Local Policy Decisions

Evidence‐based policy at the local level requires predicting the impact of an intervention to inform whether it should be adopted. Increasingly, local policymakers have access to published research evaluating the effectiveness of policy interventions from national research clearinghouses that review and disseminate evidence from program evaluations. Through these evaluations, local policymakers have a wealth of evidence describing what works, but not necessarily where. Multisite evaluations may produce unbiased estimates of the average impact of an intervention in the study sample and still produce inaccurate predictions of the impact for localities outside the sample for two reasons: (1) the impact of the intervention may vary across localities, and (2) the evaluation estimate is subject to sampling error. Unfortunately, there is relatively little evidence on how much the impacts of policy interventions vary from one locality to another and almost no evidence on the implications of this variation for the accuracy with which the local impact of adopting an intervention can be predicted using findings from an evaluation in other localities. In this paper, we present a set of methods for quantifying the accuracy of the local predictions that can be obtained using the results of multisite randomized trials and for assessing the likelihood that prediction errors will lead to errors in local policy decisions. We demonstrate these methods using three evaluations of educational interventions, providing the first empirical evidence of the ability to use multisite evaluations to predict impacts in individual localities—i.e., the ability of “evidence‐based policy” to improve local policy.     

Making sense of pollsters’ errors. An analysis of the 2014 second-order European election predictions

Pollsters have been recently accused of delivering poor electoral predictions. We argue that one of the reasons for their failures lies in the difficulty of including an updated deep understanding of electoral behaviour. Even if pollsters’ predictions are not forecasts produced by models, the set of choices needed to produce their estimates is not indifferent to a theoretical comprehension of electoral dynamics. We exemplify this lack of theory by using an original dataset consisting of 1057 party*poll observations in the case of the last European election. Pollsters failed to account for what we know about second-order elections, thus overestimating government and big parties, which normally obtain poor results in European elections, and underestimating new and Eurosceptic ones, which usually perform well.     

Determination of blood/serum ratios of different forensically relevant analytes in authentic samples

For forensic toxicological investigations only whole blood, but no serum is often available. Pharmacokinetic data are helpful for interpreting the results, but most of these studies indicate serum or plasma concentrations. In order to obtain reliable conversion factors which also take intersubject variability into account, the blood/serum ratios (B/S) of oxycodone, morphine, fentanyl, hydromorphone, zopiclone, MDMA, dexamphetamine, alprazolam, risperidone and 9-hydroxyrisperidone were determined by LC-MS/MS using authentic samples. Blood and corresponding serum samples were obtained from driving studies performed with controlled or known dosages of the above drugs. The analytes were analysed in blood and serum and the following mean B/S ratios (relative standard deviations) were determined: oxycodone 1.48 (8.19 %); morphine 1.03 (3.59 %); fentanyl 0.87 (13.9 %); hydromorphone 1.04 (8.11 %); zopiclone 0.89 (16.1 %); MDMA 1.19 (8.04 %); dexamphetamine 0.89 (10.9 %); alprazolam 0.81 (5.84 %); risperidone 0.65 (7.52 %); 9-hydroxyrisperidone 0.73 (12.3 %). These mean values are largely in line with those reported in the literature. The B/S ratios did not appear to depend on partition coefficients, whereas there was strong evidence that B/S ratios decreased with increasing plasma protein binding.     

The role of information asymmetry in the market for university–industry research collaboration

This study concerns the market for research collaboration between industry and universities. It presents an analysis of the population of all Italian university–industry collaborations that resulted in at least one international scientific publication between 2001 and 2003. Using spatial and bibliometric analysis relating to scientific output of university researchers, the study shows the importance of geographic proximity in companies’ choices of university partner. The analysis also reveals inefficiency in the market: in a large proportion of cases private companies could have chosen more qualified research partners in universities located closer to the place of business.     

How to increase the efficiency of bond covenants: a proposal for the Italian corporate market

Covenants are particular clauses in the debt contracts of firms that restrict business policy, giving creditors the possibility of putting precise actions into force (normally early repayment) when the covenants are violated. The main purpose of covenants given in the literature is to resolve the conflicts of interest between shareholders and bondholders. Lack of coordination between bondholders may, however, reduce the efficiency of these instruments. We propose an application of the Italian law allowing the insertion of a mandatory representation into the new financial hybrid contracts to give an investment firm the right to act with full power on behalf of the bondholders. We show the impact of this proposal using a formalised example for the issuance of a bond with a covenant for a firm.