Settore sommerso e politiche di emersione: un approccio stocastico
The 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.
|Date of creation:||11 Feb 2004|
|Note:||Type of Document - pdf; to print on hp laserjet 1300; pages: 30 ; figures: 2 figures. 30 pages, pdf file|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpge:0402003. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
If references are entirely missing, you can add them using this form.