There is a robust literature on the relationship between financing constraints and real investment. Little has been said on the relationship between financing constraints and capital stock in the long run. This note focuses on this last issue. To keep the model tractable, we assume that the firm...

In this paper we address the question whether the shift in labour supply curve is the only fundamental change capturing the negative correlation between the growth rates of productivity and employment in European countries in the last fifteen years. If this explanation is correct then the labour...

In this paper we build up a theoretical continuous time model to study how future constraints affect current investment decisions. We show that firms constrained in the future, but currently unconstrained, select an optimizing investment trajectory different from that of an identical firm that...

In this paper we present a continuous time model with reversible abatement capital in order to analyze the effects of environmental policies on the value of the firm and investment decisions. We show that the effects depend on what sort of future policy are implemented. We focus on investment...

This is a short survey on consumption theory. Consumption is important to both fluctuation and growth. In addition, consumption introduces some important issues involving financial markets and portfolio decisions. We will describe consumption decisions in a dynamic context. Uncertainty about...

In what follows, we show that financing constraints affects firm's investment decisions before the constraints is binding. This occurs because the firm anticipates at the current time the future bound. We argue that, even with imperfect capital markets, investment policy must be such that there...

In this paper we argue that energy efficiency and environmental efficiency are two aspects of the same problem. To show this, we assess the analytical utility of the well-known IPACT and ImPACT models, presenting here a new developed identity named Augmented ImPACT. For Italy, our findings...

In this paper we shed lights on the economic growth of Mezzogiorno of Italy during the last twenty years. The empirical analyses refer to various aspects of the Mezzogiorno economy: income per capita, labor productivity, public and private accumulation and competitiveness. The main contribution...

In questo lavoro analizziamo il sistema italiano delle politiche pubbliche per l’aggregazione delle imprese, alla luce della nuova disciplina del "contratto di rete". Lo scopo è quello di valutare l’opportunità di inserire il contratto di rete tra i destinatari delle politiche di...

Abstract This paper focuses on environmental policies aimed at rising investment in pollution abatement capital. We assume that ecological uncertainty, i.e., uncertainty over the dynamics of pollution, affects firm investment decisions. Capital irreversibility is not postulated but endogenized...