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...

This paper carries out an explanatory investigation into the relationship between socio-institutional conditions, quality of life indicators and economic growth in the Italian regions. Previous studies stress the importance of institutional quality, social capital and social conditions in...

In this paper a dynamic stochastic model is used to simulate the matching process between skills demand and supply in a segmented labor market of a typical developong area where labor market frictions are pervasive. We address the issue of the emergence of a "bad" outcome i.e. equilibrium...

The purpose of this paper is to gain insigt into the potential impact produced by a growing international integration on the labor market of economies experiencing different stages of development. The first part provides a review of the economists' debate about the impact of international trade...

This work provides some evidence for the italian regions that social capital, under a broad definition, can have a positive impact on development outcomes. Our empirical analysis includes measures of social capital related to the enforcement of formal norms, the extent of social networks, the...

This work deals with the current EU regional policy for the so-called Mezzogiorno of Italy. We discuss the new framework in the development policy for the South of Italy as a perspective tailored at enhancing the opportunities and capacities of the citizens. The paper addresses the thesis that...