This article aims at analyzing the link between subsidiaries' cap- ital structure and taxation in Europe. First we introduce a trade- off model, which studies a MNCs' financial strategy and shows how debt policy allows multinational groups to shift profits from low-tax to high-tax jurisdictions....

We study determinants of the probability of introducing an organizational innovation using three large cross sections of Italian manufacturing firms in the period 1995-2003. We analyze the effect and complementarity of other types of investments, like ICT, R&D, human and physical capital and the...

We investigate the role of workers’ and managerial experience as a determinant of firm innovation and productivity in a sample of about ten thousands Italian firms. A high share of temporary – thus un-experienced - workers is associated to low innovation and productivity. The effect of...

The problem of absenteeism has taken the centre of the stage of public attention when Renato Brunetta, the Public Employment Secretary, launched a reform of the public sector which started with a law on absenteeism. After the law was passed, the first evidence collected showed an average drop of...

Using a longitudinal data set of balance sheets of 504 nonprofit and for-profit firms operating in the social residential sector in Italy, we investigate the relation between capital structure and type of enterprise. The nondistribution constraint typical of nonprofit organizations rises the...

We develop a model of optimal asset allocation based on a utility framework. This applies to a more general context than the classical mean-variance paradigm since it can also account for the presence of constraints in the portfolio composition. Using this approach, we study the distribution of...

We investigate households' portfolio choice using a microeconometric approach derived from mean-variance optimization. We assume that households have heterogeneous expectations on the distribution of excess returns and that they can't take short positions in the risky assets. Assuming two such...

We derive from a sample of US households the distribution of the risk aversion implicit in their portfolio choice. Our estimate minimizes the distance between the certainty equivalent return generated with observed portfolios and portfolios that are optimal in a mean-variance framework. Taking...

We derive the distribution of a proxy for the risk tolerance in a representative sample of US households. Our measure is deduced from the willingness to bear risk as indicated by the variance of returns of each household’s observed portfolio. The estimates, obtained assuming constraints on...

This article aims to analyze the link between subsidiary capital structure and taxation in Europe. First we introduce a trade-off model, which looks at a MNC’s financial strategy and in particular debt shifting from low-tax to high-tax jurisdictions. By letting the MNC choose both leverage and...