Settore sommerso e politiche di emersione: un approccio stocastico
AbstractThe aim of this paper is to analyse the role of uncertainty in shaping the decisions of firms in the underground economy. Following the option value approach, we present a dynamic model which captures (i) the irreversibility of riallocation decisions from the underground sector to the legal sector and (ii)the option value od delaying the riallocation decisions when stochastic shocks can change the net present returns in both the legal and the underground sectors. The model allow us to draw a number of interesting policy implications. Last we use the theoretical results to address the specific issues that arise in the case of the Mezzogiorno of Italy.
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Bibliographic InfoPaper provided by EconWPA in its series GE, Growth, Math methods with number 0402003.
Length: 30 pages
Date of creation: 11 Feb 2004
Date of revision:
Note: Type of Document - pdf; to print on hp laserjet 1300; pages: 30 ; figures: 2 figures. 30 pages, pdf file
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decision-making under uncertainty; stochastic programming; underground economy;
Other versions of this item:
- Marisa Cenci & Margherita Scarlato, 2002. "Settore sommerso e politiche di emersione: un approccio stocastico," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2002(76).
- Marisa Cenci & Margherita Scarlato, 2001. "Settore sommerso e politiche di emersione: un approccio stocastico," Departmental Working Papers of Economics - University 'Roma Tre' 0023, Department of Economics - University Roma Tre.
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
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