This paper studies the optimal inflation rate in a transactions costs model with illegal immigration. Although unauthorized immigrants use domestic money for making transactions and consume in the host country, their welfare does not enter the objective function of the Ramsey planner, because of...

In this paper, the incidence of a tax on pure rent is analyzed in an OLG two-sector small open economy, in which one sector produces a capital good and one sector a consumer good. Contrary to what is obtained by Feldstein (1977) in a one-sector closed economy, a rent tax does not necessarily...

This paper investigates the dynamics of the distribution of unconditional and conditional on technology wages in Europe, using both industry and individual level data for the period 1995-2007. We find that the unconditional wage distribution shows scant signs of polarization in Europe. On the...

We analyse productivity growth differentials across 68.000 Italian manufacturing firms over 2001-2010, in order to disentangle internal and external productivity drivers. A two-stage procedure is implemented for extracting fixed effects for 103 home counties of the firms (stage one), and...

We construct an overlapping generations model with unemployment risk where wages, employment and severance payments are set through efficient bargaining between risk averse Unions and risk neutral firms. Assuming that a First Best cannot be achieved due to workers' shirking incentives, we...

This paper proposes and empirically tests a theory of entrepreneurial innovation in order to explain its high degree of concentration in space and time. In the model, a successful entrepreneurial project is the result of a search and matching process between entrepreneurs looking for funds and...

This paper evaluates the impact of unconventional and conventional monetary policies in the U.S. on the Libor-OIS spread, long-term interest rates and long-term inflation expectations. To this purpose we investigate the behavior of selected asset yields on the days of monetary policy...

This paper presents a classical micro-founded growth model with endogenous direction and size of technical change. In a standard induced innovation model firms freely adopt productivity improvements from an innovation possibilities frontier describing the trade-off between increasing capital or...

This paper proposes a multidimensional concept of knowledge, encompassing several formal and informal skills to complement education and on-the-job training, under a gender perspective. By considering the case of Italy, we estimate the impact of such a concept of knowledge on men’s and...