Do municipal unions improve cost efficiency for the social function? A quasi-experimental endogenous stochastic frontier approach

Homogeneous national policies can generate heterogeneous effects on the territory. This paper aims to verify the impact of the entry of single Italian municipalities into an inter-municipal association on the unitary costs of the social services supplied to the local communities. Panel cost stochastic frontier model in the presence of endogeneity has been introduced based on two pillars: a counterfactual setting to verify the aggregation effects concerning a set of similar municipalities and the use of a cost efficiency estimation methodology which considers the endogeneity of output with respect to cost. The results of our analysis show that the effects of adopting associated forms of service delivery can be very multifaceted and diversified according to the typology and the degree of implementation of the Municipal Union itself. The analysis sheds light on the effects of municipalities' organisational choices, addressing the consolidation of small municipalities not in binary terms but also—and above all—suggesting that it is the type of union that impacts the possibility of convergence towards greater cost efficiency.     

Key variables for developing integrated rural tourism

Considering how important tourism development is as an element of economic recovery in rural areas, one of its objectives should be sustainability. The starting point must therefore be the existence of partnerships and cooperation between stakeholders. Such cooperation would enable the integration of tourism development through the endogeneity, complementarity, and embeddedness of the resources and the empowerment of the residents. The objective of this research is to determine the basic types of relationships to be developed in order to achieve integrated rural tourism. Initially, we verify the variables involved in integrated rural tourism by determining the measurement models, and subsequently we propose a model that reflects the relationships between the variables under study. Our research shows that there must be two types of collaboration between stakeholders. First, there must be collaboration to develop a tourism product, and second, there must be collaboration to provide adequate information about the existing tourism activities. Due the nature of tourism, various types of businesses must work together, but if information is not subsequently provided about the product, then tourism cannot develop as desired. Collaboration as a whole also favours the development of rural tourism in which tourism activities complement the traditional activities of an area, consequently increases the embeddedness of the product and the endogeneity of the resources. Furthermore, the opinions of the various stakeholders in tourism development must be taken into account, especially the residents, which takes place through empowerment. Finally, collaboration means that residents and tourists must coexist and come into contact, therefore sharing public services and entertainment and leisure locations. All the aforementioned factors consequently provide the basis for integrating the rural tourism that is developed in an area, which will favour the economic, sociocultural, and environmental sustainability of that area.     

Investigating space-time patterns of regional industrial resilience through a micro-level approach: An application to the Italian wine industry

This paper introduces a new methodology to identify space-time patterns of regional resilience using a micro-level approach. The novel empirical tool combines geographically weighted regression with panel stochastic frontier analysis with endogenous covariates. The analysis is implemented on a panel of farm holdings operating in the Italian wine industry, focusing on the impact of a major institutional change. The results show the effectiveness of the new procedure in identifying geographical clusters of wine producers who reacted to the shock in similar ways. The responses are found to be homogeneous within specific territories and heterogeneous between regions.