The literature on irreversible investment fails to explore the relationship between the present value of alternative strategies and appropriate risk-adjusted interest rates. We attempt to fill this gap by showing that, to avoid arbitrage opportunities, the real option¡¦s rate must be higher...

This work provides an explanation for the puzzling trade-off between labor productivity and capital accumulation, occurred in Italian energy sector from the late 1980s onwards. By using a vector autoregressive model, we decompose labor productivity into technological and non technological...

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...

In this paper we investigate the effects of introducing explicitly abatement capital in a welfare function which depends on waste stock and consumption. Consumption is assumed to produce an undesiderable residue. Society can control waste accumulation using abatement capital. We focus on two...

In this paper, we study the effects of environmental regulation which establishes binding targets to pollution accumulation. Pollution follows a geometric Brownian motion. Inside the targets, pollution behaves as if it were freely floating until it hits one of the two limits. The model provides...

In this paper we argue that a rise in energy efficiency can help in improving both economic and environmental scenarios. We estimate the impact of energy efficiency on economy, looking at employment and polluting emissions. To show this, we assess the analytical utility of the IPAT and ImPACT...

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...

We consider a credit cycle model introduced by Matsuyama, which is defined by a one-dimensional piecewise smooth map with upward, downward and flat branches. We offer a detailed analysis of this model for the case where asymp- totic dynamics does not involve the flat branch, under the additional...