This work shows that in a two-period framework, prudence has an increasing effect on optimal prevention. This conclusion is the opposite to that obtained in a one-period framework [Eeckhoudt and Gollier, Economic Theory 26 (2005), 989-994]. This is due to the opposite effect of prevention on...

This paper studies political cycles in a setting of international interdependence. Three main results are obtained. First in this context the political cycles caused by domestic elections are usually larger than is indicated in the previous literature. Second, political cycles can be generated...

This work examines the effects on investment theory of introducing learning by doing externalities in adjustment costs. The analysis shows that the long run equilibrium of the economy, which was represented in the traditional formulation by a steady state, becomes, in this new framework, a...

This work examines in a unified framework the effects on public investment decisions of different sources of uncertainty and the consequences of uncertainty variability over time. The analysis shows that uncertainty about investment benefits, future consumption and input costs have espectively...

Questo lavoro è la versione preliminare del capitolo dedicato alla “New Economic Geography” (NEG) ed alle sue implicazioni per lo sviluppo locale del testo “Manuale di sviluppo locale” (a cura di G. Seravalli), attualmente in corso di stesura. Il lavoro studia innanzitutto il problema...

Il lavoro studia gli effetti dell'introduzione di un vincolo a mantenere in pareggio il bilancio pubblico sulle conclusioni in merito alle conseguenze in un'economia chiusa di una manovra di politica economica volta a ridurre l'imposizione fiscale sui profitti delle imprese. I risultati ottenuti...

This paper purports to apply the Kydland-Prescott framework of dynamic inconsistency to the case of fiscal policy, by considering the trade-off between output and debt stabilization. The Government budget constraint provides the link between debt dynamics and the level of activity, influenced by...

This paper proposes a new interpretation for the precautionary saving motive: when future income is uncertain, agents increase saving in order to cause a reduction in the disutility due to uncertainty. Furthermore the paper shows that the usual necessary and sufficient condition for...

We examine optimal saving in the presence of two small risks: income risk and a background risk. First, we compute the necessary and sufficient condition for a positive precautionary saving, showing that it depends on two terms capturing respectively the direct effect of income risk and the...