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Financial and labor market imperfections and investment

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  • Calcagnini, Giorgio
  • Giombini, Germana
  • Saltari, Enrico

Abstract

This paper analyses how financial and labor market imperfections jointly influence investment. The contemporaneous presence of imperfections gives rise to a negative correlation between EPL and investment. Our results support the policies promoted by European institutions to reform both markets.

Suggested Citation

  • Calcagnini, Giorgio & Giombini, Germana & Saltari, Enrico, 2009. "Financial and labor market imperfections and investment," Economics Letters, Elsevier, vol. 102(1), pages 22-26, January.
    • Handle: RePEc:eee:ecolet:v:102:y:2009:i:1:p:22-26
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