We study the financing of R&D and innovation expenditures of French defence firms at the end of a period characterised by a decline of defence purchasing. Our results provide some support for the hypothesis of a dependence of these firms on public aid. However, large groups receive most of this...

The current situation of the sector is the result of a long process. It began with the first business initiatives concerning social integration and the different regulations developed by regional governments in support of social enterprises. There have been continual demands in the sector for...

The paper presents the legal issues related to the investment relief in agricultural tax. A particular attention was paid to the question of incentives for investments financed from public funds, including the EU budget. The doctrine, opinions of the Ministry of Finance, the Ministry of...

We examine the effects of local public policies aimed at stimulating the private sector by means of subsidies. Our goal is that of understanding. the level of coherence between publicly stated goals of the regional policy-maker, the actual shape of the subsidies, and their effects at firm level....

The national forest growth process and forest policy experienced in Finland in past 50 years are analyzed in terms of modern dynamic investment theory. Optimal forest investments and forest stock are derived in dynamic optimization framework. The private investments are subsidized by the...

Economics is not a hard science, subject to controlled experiments. In their absence, we economists construct narratives to explain events, often involving key sound bites. Among the sound bites of the financial crisis are the following: “Separate the casino from the utility bank”;...

Banks cannot be made fail-safe. But they can be made safe to fail, so that the failure of a bank need not disrupt the economy at large nor pose cost to the taxpayer. In other words, banks can be made resolvable, and “too big to fail” can come to an end. To do so, the authorities, banks and...

This paper investigates two elements of agency costs, namely the wealth-transfer and the value destruction problems, associated with the equity-conversion and writedown CoCo bonds. By focusing on the costs as those stemming from the deviation from absolute priority rule (DAPR), we derive the...

This paper investigates three consequences of the new financial regulation: the agency costs, the monitoring costs and the effect on banks’ cost of capital. For the first, the shareholders’ behaviour is analysed as a trade-off between the value of the bank and its volatility by using an...

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