Empirical Evidence For Italy Research Articles

Exploring the nexus between innovation and firm performance: new evidences from manufacturing innovation survey of Pakistan

ABSTRACT In this article, we examine the innovative behaviour of private manufacturing firms using a unique Innovation Follow-up Survey (2015) first time conducted by the World Bank for the Pakistan economy. To model the structural relationship between R&D, innovation, firm performance, and export we specify an extended version of CDM model proposed by Crepon et al. (1998. Research, innovation and productivi [Ty: An econometric analysis at the firm level. Economics of Innovation and New Technology, 7(2), 115–158), modified by (Griffith, R., Huergo, E., Mairesse, J., & Peters, B. [2006]. Innovation and productivity across four European countries. Oxford Review of Economic Policy, 22(4), 483–498; Hall, B. H., Lotti, F., & Mairesse, J. [2009]. Innovation and productivity in SMEs: empirical evidence for Italy. Small Business Economics, 33(1), 13–33) and further extended by this study via introducing propensity to export stage. Our econometric results show that technological innovations (product and process innovation) have significantly positive impacts on firm performance which plays a key role in the firm’s decision to engage in exporting activities. The elasticity of labour productivity with respect to process is slightly higher than the product innovation. Robustness analysis reports that, except for organisational innovation, the predicted research intensity has a positive impact on innovation output no matter which proxy is used for the firm-level innovation. Moreover, non-technological innovations (marketing and organisational innovation) have no impact on firm performance for all the alternative econometrical specifications and are mostly in line with the existing literature. The findings have practical implications for policymakers with respect to firm productivity and export propensity, and highlight the significance of innovation in empowering firms to increase economic performance and catch up.

The Taxation of Savings: The Italian System and International Comparison

After a brief review of the economic literature, the paper offers a comparative analysis of the main features of capital income taxation in Italy, the EU and the US. The paper also analyses the recent evolution of capital taxation and portfolio allocation in Italy. The findings point to high heterogeneity in the choice of the type of tax system, taxation level and forms of preferential taxation, suggesting no convergence towards a single model of taxation among countries. However, a common feature of most systems is that capital income is taxed more lightly than labour income. The heterogeneity in the tax treatment of households’ savings is likely to persist in the future; recent developments at international level concerning the transparency of taxation are expected to increase governments’ degrees of freedom in choosing their preferred tax system. Empirical evidence for Italy suggests that the tax burden on financial assets has increased in recent years but the evolution of financial assets over time is not particularly sensitive to tax changes.

Does redistribution matter? The decomposition of the fiscal residuum in Italian regions

ABSTRACTFiscal residuum has often been used as an index of the territorial balance between taxes paid and benefits received from the policies of different tiers of government. Its standard calculation, however, conflates what of the residuum is due to the need of financing public spending and what is due to the redistributive aims of government levels. This paper introduces a decomposition that isolates these two elements. The empirical evidence for Italy in the period 2003–15 shows that differences in fiscal residua between the northern and the southern regions are smaller than usually calculated. A clear difference, instead, emerges in special statute regions.

The cost efficiency of water utilities: when does public ownership matter?

ABSTRACTThis study explores the impact of different ownership types on the efficiency of water utilities. Theories and evidence have shown a puzzling relationship between ownership and performance. Moreover, relatively recent contributions (Andrews et al. 2011) have argued that this relationship can be further convoluted by the effect of organisational and environmental variables. The current study aims to contribute to this literature by providing some empirical evidence for Italy, by proposing a methodology that combines non-parametric efficiency estimation and cluster analysis. Our main findings indicate that privately owned utilities indirectly controlled by a public organisation reach the highest level of efficiency but, when size and geographical location enter the analysis, ownership has a stronger significant effect on efficiency, and mixed utilities gain higher cost efficiency. Therefore, we may conclude that administrative reforms about privatisation and the institutional setting should consider a set of variables that characterise each individual organisation.

Tax Evasion and Economic Crime. Empirical Evidence for Italy

This paper examines the impact of tax evasion on criminal activities in Italy. We use annual data for the Italian provinces over the period 2006 to 2010. Empirical findings show that the tax evasion is positively correlated with property crime rates (including robberies, thefts and car thefts) but substitutes frauds and usury. Moreover, the estimates indicate that these crimes show a different persistency over time, reflecting different adjustment costs. Finally, we reports on the relationship between economic crimes and tax evasion in two large macro-regions.

Export activity and firm heterogeneity: a survey of the empirical evidence for Italy

The aim of this study is to discuss the empirical literature which analyzes the relationship between firms heterogeneity and export activity on Italian manufacturing firm level data. We first present a short review of the main empirical techniques adopted in the applied literature and we briefly summarize the most relevant theoretical models. In the following sections, we survey studies investigating which firms characteristics are more likely to favour the exporting activity and papers which address the impact of exporting on firm performance. Most studies suggest that more productive and innovative firms are more likely to enter international markets and exhibit higher export intensity; moreover, future exporters start performing better some years before entering international markets and such differential are persistent over time. Possible further extensions and policy implications of the empirical findings are finally discussed.

The contribution of universities to growth: empirical evidence for Italy

New entrepreneurial ventures may represent a viable and effective mechanism to transform academic knowledge into regional economic growth. We test this notion for the Italian provinces between 2001 and 2006. We evaluate three outputs of academic activities: teaching, research and intellectual property rights activities. New ventures may be able to transform the mentioned outputs into improved economic performance. The findings show that the effects of academic outputs on provincial economic growth (all sectors) are appreciable when they are associated with sustained entrepreneurial activities in the province. It suggests that academic inquiry may provide new ventures with valuable commercial opportunities overseen by established companies.

Wagner versus Keynes: Public spending and national income in Italy

Wagner's Law is the first model of public spending in the history of public finance. The aim of this study is to assess its empirical evidence in Italy for the period 1960–2008 at a disaggregated level, using a time series approach. After a brief introduction, a survey of the economic literature on this issue is shown, before estimating the specifications of Wagner's Law for some specific items of public spending (for interests, for final consumption, for labor dependent income, for grants on production, and for public investments), according to the Bank of Italy classification. We found a cointegration relationship for three out of five items. Moreover, results from Granger causality tests show evidence in favor of Wagner's Law only for passive interests spending in the long-run, and for dependent labor income spending in the short-run. Some notes on the policy implications of our empirical results conclude the paper.

The impact of migrant work in the elder care sector: recent trends and empirical evidence in Italy

Italy is characterized by a very high and increasing demand for elder care but, paradoxically, also by a surprisingly low level of public service provision in this sector. Due to current demographic, economic and socio-cultural trends, the potential availability of informal family care has been decreasing while, on the other hand, still strong familistic attitudes have so far limited the emergence of formal—both home and residential—care services. The ‘cash-for-care’ orientation of the Italian welfare system, with direct payments prevailing over in-kind services, has thus gradually developed into a care regime where monetary transfers to dependent (older) people are often used to privately employ migrant care workers. This phenomenon is analyzed in the context of two different studies (EUROFAMCARE and DIPO), in order to understand how migrant care work has been affecting both family care and professional care work in Italy. The main findings suggest that the widespread employment of migrant care workers—propelled by public care allowances—has certainly relieved many families from most burdensome care tasks, but at the same time partly ‘crowded out’ formal care services. Care quality issues remain. however, largely under-investigated, as do care drain effects in sending countries.

The Contribution of Universities to Growth: Empirical Evidence for Italy

New entrepreneurial ventures may represent a viable and effective mechanism to transform academic knowledge into regional economic growth. We test this notion for the Italian provinces between 2001 and 2006. We evaluate three outputs of academic activities: teaching, research and Intellectual Property Rights (IPR) activities management. New ventures may be able to transform the mentioned outputs into improved economic performance. The findings show that the effects of academic outputs on provincial economic growth (all sectors) are appreciable when they are associated with sustained entrepreneurial activities in the province. It suggests that academic inquiry may provide new ventures with valuable commercial opportunities overseen by established companies.

Legge di Wagner e spesa pubblica italiana disaggregata: un approccio VAR

Wagner’s Law is the first model of public expenditure in the history of public finance. The aim of this article is to assess its empirical evidence in Italy for the period 1960-2008 at a disaggregated level, with a VAR approach. After a brief introduction and a survey of the economic literature on this issue the specifications of Wagner’s Law for some specific public expenditures are estimated. Wagner’s original specification is also estimated. Some notes on the long-term relationship between public spending and national income conclude the paper.

Regional infrastructure and firm investment: theory and empirical evidence for Italy

The authors model the channels through which public expenditure on infrastructure influences firm value and shapes its investment decisions via both adjustment costs and marginal profitability of capital. The authors test these hypotheses using a large panel of Italian firms. Empirical results show that infrastructure interacts with revenues and costs in shaping firm’s capital profitability and influences its adjustment costs. Finally, the authors find that infrastructure expenditure contributes to the reduction of the economic gap between the North and the South of Italy. These effects vary across regions and sectors.

From Strategic Planning to City Branding: Some Empirical Evidence in Italy

In a globalized world where places compete with each other, the image of the city plays a crucial role to attract tourists and investors, and to make citizens stay with satisfaction and avoid their moving away. By exploring the connections and implications between theory and empirical outcomes of some Italian cities as to its attractiveness for tourists and investors, this paper intends to offer a useful overview both for academicians and practitioners. The purpose is not only to go through the extensive literature on strategic planning place marketing and city branding, but to focus specifically on some Italian cases (Turin, Genoa, Venice, Piacenza), where the application of the above mentioned instruments has provided interesting results to compare.

Financial innovation: theoretical issues and empirical evidence in Italy and in the UK

In the first part of the paper, we try to clearly identify financial innovations and draw a general framework. Despite the relevance of financial innovations, a unique definition is difficult to find. We then provide empirical evidence of such innovations on a sample of Italian and UK listed banks over the period 2005–2007 using financial account data. First, the absence of any mention of a specific organizational unit in charge of research and development (R&D) is highlighted. However, the existence of a research and developmental function involving different organizational units cannot be excluded. Second, innovation seems to be mainly concentrated in the product area, both in Italy and in the UK. This could be accounted for by the difference in the “life cycles” of innovations and by the different operational conditions of banks in both systems. Third, larger banks seem more innovative, both in Italy and in the UK. No clear relation between innovation and cost reduction/revenue increase seems to exist, at least in Italy. In the light of the above considerations, policy implication comes to light on whether the choice of not establishing a specific organizational unit dedicated to R&D could turn out effective in the medium-long term.

Innovation and productivity in SMEs: empirical evidence for Italy

Innovation in SMEs exhibits some peculiar features that most traditional indicators of innovation activity do not capture. Therefore, in this paper, we develop a structural model of innovation that incorporates information on innovation success from firm surveys along with the usual R&D expenditures and productivity measures. We then apply the model to data on Italian SMEs from the “Survey on Manufacturing Firms” conducted by Mediocredito-Capitalia covering the period 1995–2003. The model is estimated in steps, following the logic of firms’ decisions and outcomes. We find that international competition fosters R&D intensity, especially for high-tech firms. Firm size and R&D intensity, along with investment in equipment, enhances the likelihood of having both process and product innovation. Both these kinds of innovation have a positive impact on firm’s productivity, especially process innovation. Among SMEs, larger and older firms seem to be less productive.

'Wagner's Law' in Italy: Empirical Evidence from 1960 to 2008

“Wagner’s Law” is the first model of public expenditure in the history of public finance. The aim of this article is to assess its empirical evidence in Italy for the period 1960-2008. After a brief introduction, an essential survey of the economic literature on this issue is offered, before evaluating the specifications of “Wagner’s Law” due either to Ram or Koop & Poirier. Wagner’s original specification is also evaluated. A few notes on the expenditure policy in Italy conclude the paper.

Innovation and Productivity in SMEs - Empirical Evidence for Italy

Innovation in SMEs exhibits some peculiar features that most traditional indicators of innovation activity do not capture. Therefore, in this paper, we develop a structural model of innovation which incorporates information on innovation success from firm surveys along with the usual R&D expenditures and productivity measures. We then apply the model to data on Italian SMEs from the “Survey on Manufacturing Firms” conducted by Mediocredito-Capitalia covering the period 1995-2003. The model is estimated in steps, following the logic of firms’ decisions and outcomes. We find that international competition fosters R&D intensity, especially for high-tech firms. Firm size, R&D intensity, along with investment in equipment enhances the likelihood of having both process and product innovation. Both these kinds of innovation have a positive impact on firm’s productivity, especially process innovation. Among SMEs, larger and older firms seem to be less productive.

Asymmetric monetary policy: empirical evidence for Italy

A growing body of empirical work has examined the potential asymmetry in the effects of monetary policy on United States real activity. This study looks for such an empirical evidence for Italy in the period 1982–1998. Monetary shocks are obtained as residuals from a central bank reaction function where the three-months interbank rate is taken as the indicator of the monetary policy stance. The effects of these positive and negative shocks on output are statistically different from zero and the null of symmetry between the two is rejected in favour of negative shocks having a greater impact on real output growth, thus confirming an asymmetric effect of monetary policy even for Italy.

Wage drift and minimum contractual wage: Theoretical interrelationship and empirical evidence for Italy

A two-stage wage setting process whose outcomes are identified in the wage drift, at the local level, and in the tariff wage, at the central level, is analyzed. The impact of insider and outsider factors in each stage of the bargaining process is investigated both theoretically and empirically for Italy. In the light of its extreme policy relevance, particular attention is devoted to the analysis of the interrelationships between the wage drift and the tariff wage. Panel data estimation carried out on a sample of 105 Italian three-digit industries and 41 contract groups, reveals that: (1) Insider factors (productivity, inventories and the insider workers power) are important determinants of the wage drift while outsider factors (aggregate wage and unemployment) have a prominent role in determining the tariff wage. (2) Wage drift and tariff wage are closely interrelated.

The relationship between employment and investment: theoretical aspects and empirical evidence for Italy

The relationship between employment and investment activity in Italy over the 1970–86 period is studied. A theoretical model is used showing that the overall effect of ivestment on employment can either be positive or negative depending on the relative strength of three individual components of such global effect. An empirical investigation which aims to look for a causal impact of investment activity on the employment rate is then undertaken. The results of stationarity tests on our time series show that a distinction is made between short-run and long-run considerations in the case of the industry sector; hence, cointegration and causality analysis for this sector was performed. In the case of the other sectors an regions, we have to content ourselves with only the cyclical dimension of the series.