Cenci, Marisa; Scarlato, Margherita - Dipartimento di Economia, Università degli Studi di Roma 3 - 2001
The aim of this paper is to analyse the role of uncertainty in shaping the behavior of firms in the underground economy. Following the "option value" approach, we present a dynamic model which captures (1) the irreversibility of reallocation decisions when stochastic shocks can change...