1,721,008 research outputs found
Persistence, comovement and common trends: an empirical study of disaggregated Italian output and labour input
No full text
Tax evasion and financial accelerator: A corporate sector analysis for the US business cycle
No full textThis paper investigates the consequences of willful tax noncompliance in the US corporate sector on the business cycle when financial frictions operate. In this setting, we simulate a risk shock that propagates its effects in the credit channel via a financial accelerator mechanism. In addition to emphasizing the role of tax evasion as a self-financing mechanism, the paper provides a twofold result, producing nonnegligible consequences for business cycle analysis. First, conditioned on risk shock, tax evasion strengthens the effects of the financial accelerator and amplifies macroeconomic fluctuations considerably. Second, endogenous tax evasion dynamics generates a reallocation of resources from productive to consumption uses over the business cycle
Tax Evasion, Investment Shocks, and the Consumption Puzzle: A DSGE Analysis with Financial Frictions
No full textRecent studies identify Marginal Efficiency of Investment (MEI) shocks
as important drivers of the business cycle. However, Dynamic Stochastic
General Equilibrium (DSGE) models struggle to explain macroeconomic
co-movements between consumption and key real variables after a MEI
shock. In that context, this paper aims to investigate the role of tax eva-
sion, given its far from negligible e¤ects on key macroeconomic variables.
Moreover, engaging in tax evasion practices is often an answer to finan-
cial constraints, which have been recognized as important determinants of
cyclical fluctuations. We use a medium-scale New Keynesian DSGE model
that combines tax evasion with financial frictions à la Bernanke, Gertler,
and Gilchrist (1999) to simulate a MEI shock. Our contribution shows
that entrepreneurial tax evasion can solve the co-movement problem to a
fair extent
I problemi del coordinamento
No full textIl coordinamento è inteso come l’insieme di strategie necessarie per raggiungere un equilibrio piuttosto che un altro. Questo problema avviene, quindi, in contesti di equilibri multipli, dove esistono più soluzioni strategiche. In altri contesti, come nel gioco del dilemma del prigioniero, la situazione possibile per agenti razionali è unica, sebbene fortemente sub-ottimale (in questo caso Pareto-migliorabile) nei confronti di una soluzione alternativa che però non costituisce un equilibrio. Un agente razionale non potrà mai raggiungere quest’ultima soluzione in quanto guidato dalla razionalità individuale. Questo concetto è cruciale e si contrappone alla razionalità collettiva, necessaria per raggiungere un accordo tra paesi. Ci soffermeremo molto sul confronto tra questo schema strategico (DP) ed altre tipologie di giochi che presentano più equilibri, per mettere in risalto gli incentivi a deviare da un possibile accordo o gli incentivi che possono far fallire un possibile coordinamento verso la soluzione migliore dal punto di vista del benessere sociale e/o della riduzione delle emissioni. Nel presentare queste caratteristiche strategiche che sottendono ipotetici trattati internazionali, descriveremo alcuni aspetti dei beni pubblici globali, quale la riduzione delle emissioni di CO2, e indicheremo anche i possibili limiti degli schemi utilizzati. Questi limiti sono comunque importanti in quanto ci forniscono un benchmark utile per riflettere sulla reale difficoltà dei trattati internazionali sul clima
Banking crises and business cycle: evidence for Italy (1861-2016)
No full textL'articolo ha vinto il premio LITERATI AWARDS 2020Abstract
Purpose – This paper aims to focus on the banking crises recorded in Italy in the period 1861-2016
and to propose a novel classification based upon the timing of the crisis with respect to the business
cycle.
Design/methodology/approach – A simple and objective rule to distinguish between slowdown and
inner-banking crises is introduced. The real impact of banking crises is evaluated by integrating the narrative
approach with an empirical vector autoregression analysis.
Findings – First, banking crises are not always associated to economic downturns. Especially in Italy, (but
this analysis can be easily extended to other countries), they have often limited their negative effects within
the financial system (“inner” crises). Second, the simultaneity of macroeconomic effects (credit contraction and
GDP recession) leave the causal link undetermined. Third, the empirical and narrative analyses performed
testify that boom–bust mechanisms are an exception in the panorama of (Italian) banking crises; although
when the economy experiences such episodes, the economic and social consequences are not only severe but
also enduring.
Research limitations/implications – To classify historically recognized banking crisis episodes,
the authors look at credit and GDP dynamics (and their ratio) around crisis years. Relying on a single
definition of crisis is avoided. The classification provides an empirical rule to determine in what way
banking crises differ. The classification is mostly based on the synchronization with the business cycle
and, using the documented evolution of macroeconomic aggregates, it permits to highlight the fact that
a variety of interactions occur between financial and real aggregates during and around banking
crises.
Originality/value – As to the concept of systemic banking crisis, a qualitative judgment is often adopted
to select relevant episodes, thus confirming the absence of a quantitative rule in classification criteria
(Chaudron and de Haan, 2014). This paper proposes a simple and objective rule to distinguish between
slowdown and inner-banking crises; the former occur close to a GDP contraction, whereas the latter appear to
spread their effects with no substantial evidence of output loss.
JEL classification – E32, E44, N13, N1
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
Housing Environmental Risk in Urban Areas: Cross Country Comparison and Policy Implications
Full text linkThe main aim of this paper is to assess whether there is a statistically significant environmental impact of cities within European countries. Second, starting from the estimated environmental impact of cities within European countries, the paper investigates whether cross-country variation can be explained by macro-economic factors and government policies which can play a role in mitigating such an impact. We start from individual evidence (EU-SILC data) to obtain a measure of the environmental impact of cities within countries, and then correlate the latter with macro variables to explain European heterogeneity. These estimates confirm that the environmental risk for households is particularly perceived in more densely populated urban agglomerations, although the marginal effects are quite heterogeneous between countries. Macroeconomic factors such as inequality, wealth, taxation and public spending on the environment, and macroeconomic constraints such as the public finance disequilibrium produce a strong heterogeneity between countries in determining the marginal effects of urban metropolises on household environmental risk
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