New Publications:
Financial structure, investment and growth of the EU Non-Financial Sector. Forthcoming on Journal of Economic Integration
Abstract:
This paper tests the neutrality view for the Non-Financial Corporations (NFC) sector in the European Union (EU) between 2000 and 2021. We investigate how market-based and bank-based finance can affect Investment and Value-Added performance within this sector. We use a Panel VAR specification to account for the time profile in the response of performance indicators. Our evidence indicates that market-based finance stimulates Value-Added and investment growth in the EU’s advanced economies, mainly in Intellectual Property Products. In Eastern and South-Eastern member states, investment growth, especially in tangible goods, is stimulated by bank finance. In this group, market-based finance plays an important role for intangible investment. Three main implications emerge. First, the neutrality view does not hold; second, the economic and financial systems of the various EU countries are characterized by deep differences; third, implementing the Capital Market Union alongside the Banking Union will remain a key priority in the EU.
Abstract:
The topic of measures to fight against poverty is one of the most debated by decision-makers, commentators, and insiders in Italy. After a short life, despite the increase in poverty and inequalities in Italy, the universal income support measures were abolished in 2023. This paper presents a counterfactual impact evaluation of the Inclusion Income (II), Italy’s first income support measure, on severe material deprivation from 2017 to 2021. We rely on a novel database collected from a survey addressed to beneficiary and non-beneficiary but eligible families of universal income support measures in Italy. Our results show a positive impact of the monetary benefit on the probability of not being severely materially deprived in 2019 but not in 2021. The in-kind part of the benefits, namely the socio-economic reinsertion personalized project, is, instead, effective after 2019, confirming its importance in addressing structural disadvantages and providing a long-term solution to material deprivation for the most disadvantaged groups. Results also show that the in-kind benefit is more effective in the South. Policy implications concerning the potential effectiveness of the polices replacing the II are discussed.
Abstract:
This article investigates the relationship between the supply of graduates and innovative entrepreneurship in Italian provinces between 2014 and 2022. We estimate panel data models using a novel dataset, controlling for the different ways higher education institutions (HEIs) might affect start-up creation. The results suggest that graduates contribute significantly to innovative entrepreneurship, especially in science, technology, engineering and mathematics (STEM) fields. We find that STEM graduates might be particularly effective in provinces characterised by a low share of tertiary-educated population. As a main policy indication, we suggest that HEIs can play a pivotal role in combatting low development traps by improving the quality of entrepreneurial ecosystems.
Abstract:
Since 2015, the European Commission has been instrumental in integrating the 17
UN Sustainable Development Goals (SDGs) into targeted economic policies for
Member States. Pursuing this broad spectrum of economic, social, and environmental
goals could have had significant macroeconomic consequences and redistributive
effects between and within European countries. Uneven progress among Member
States in achieving the 17 SDGs might have also had a heterogeneous impact
on countries’ business cycle trends, thus worsening the preexisting core–periphery
dualism observed in the past two decades in some European Monetary Union
(EMU) country groups.
In this paper, we use a panel VAR to test whether and how the heterogeneous progress
of EMU members toward the SDGs has impacted the business cycle movements
of 11 EMU countries during the period 2003–2021. The results confirm that
progress toward the achievement of SDGs has been detrimental to business cycle
convergence between core and periphery countries and within the periphery.
Abstract:
The Schumpeterian perspective posits the entrepreneur as the central figure driving innovation, with firms serving as conduits for bringing these innovations to market. A significant share of entrepreneurs exhibits minimal interest in innovation or growth and are driven by non-monetary incentives inherent in entrepreneurial pursuits. This paper challenges prevailing notions by asserting that a key motivator for entrepreneurship lies in the enjoyment of managerial control, manifested as a desire for authority over others. Leveraging data from the EFIGE dataset, we investigate the relevance of this motivation and its correlation with firms’ innovative strategies and performance. Our findings inform discussions on the formulation of policies aimed at fostering innovative entrepreneurship.
Journal articles in English
2025 – “Financial structure, investment and growth of the EU Non-Financial Sector”, (with M. Messori, V. Larocca, and M. Mischitelli), forthcoming on Journal of Economic Integration.
2025 – “The Impact of Income Support Measures on Material Deprivation: the case of Italy”, (with M. De Angelis), Applied Economics, published online 16th September 2025. https://doi.org/10.1080/00036846.2025.2557578
2025 – “Higher Education and Innovative Entrepreneurship: a regional analysis”, (with F. Ferrante and S. Scicchitano), Regional Studies, 59(1). https://doi.org/10.1080/00343404.2025.2542347
2025 – “Un-sustainable development goals as a new dimension of the Core-Periphery dualism”, (with R. De Santis and L. Di Biagio), Economic Change and Restructuring, 58(1). https://doi.org/10.1007/s10644-024-09842-3
2024 – “Control Freaks or Good Parents? Entrepreneurial motivation
and firms’ innovative performance” (with F. Ferrante). Economia Politica: Journal of Analytical and Institutional Economics, 41, 739-769. https://doi.org/10.1007/s40888-024-00347-w
2023 – “Drivers of skill mismatch among Italian graduates: The role of personality traits” (with S. Scicchitano). Applied Economics, 55(40), 4642–4663. https://doi.org/10.1080/00036846.2022.2130151
2022 – “Educational mismatch and labour market transitions in Italy: Is there an unemployment trap? (with S. Scicchitano). Structural Change and Economic Dynamics, 61, 138-155. https://doi.org/10.1016/j.strueco.2022.02.011
2021 – “What drives employment to unemployment transitions: evidence form task-based data” (with N. Cassandro, M. Centra and D. Guarascio). Economia Politica: Journal of Analytical and Institutional Economics, 38(3), 1109-1147. DOI: 10.1007/s40888-021-00237-5
2021 – “Environmental Regulation and Productivity Growth: main policy challenges” (with R. De Santis and C. Iona Lasinio). International Economics, 165, 264-277.
2020 – “Macroeconomic Imbalances in Europe: how to solve the unit labour costs fallacy” (with S. Collignon) available online from 2d June 2020 on Journal of Policy Modeling. https://doi.org/10.1016/j.jpolmod.2020.04.004
2020 – “The Effect of Immigration on Unemployment in Europe: does the core-periphery dualism matter? (with S. Collignon and S. Scicchitano), Economic Modelling 84, 249-258. https://doi.org/10.1016/j.econmod.2019.04.014
2019 – “Structural Determinants of Potential Output Growth in Europe and the Role of Fiscal Policy” (with R. De Santis and E. Masi), International Economics and Economic Policy 16, 565-591. https://doi.org/10.1007/s10368-019-00437-2
2019 – “Competitive or recession gains? On the recent macroeconomic rebalances in the EMU” (with M. Messori), The North American Journal of Economics and Finance 47, 147-167. DOI: 10.1016/j.najef.2018.12.006
2018 – “Tertiarization and land use change: the case of Italy” (with F. Patriarca and L. Salvati), Economic Modelling 71, 80-86. DOI: 10.1016/j.economod.2017.12.002
2017 – “Trade Creation, Trade Diversion, and Imbalances in the EMU”, Economic Modelling vol. 60, pp: 462-472. DOI: 10.1016/j.econmod.2016.09.014
2015 – “Land Degradation, Economic Growth abd Structural Change: Evidences from Italy” (with F. Patriarca, L. Perini, L. Salvati), Environment, Development and Sustainability, 18(2), 431-448. DOI 10.1007/s10668-015-9655-9
2013 – “Technological Catching Up, Quality of Exports and Competitiveness: a sectoral perspective” (with E. Cavallaro, M. Mulino and A. Matano), Emerging Markets Finance and Trade, vol 49(6), pp: 4-21.
2013 – “European Sovereign Bailouts, Political Risk and the Economic Consequences of Mrs. Merkel” (with S. Collignon and H. Lierse), Journal of International Commerce, Economics and Policy, 4(2).
2012 – “Intra-European Imbalances, Adjustment, and Growth in the Eurozone” (with P. Guerrieri), Oxford Review of Economic Policy, vol 32(3), pp: 532-50.
2012 – “The Internationalisation of the Italian Economy: a lost chance, an opportunity to seize” (with P. Guerrieri), Review of Economic Conditions in Italy, n. 1/2012
2009 – “The Sector Bias of Skill-Biased Technical Change and the Rising Skill Premium in Transition Economies” (with R. Stehrer), Empirica, vol. 36(3), pages 351-64
Chapters in books
2025 – “Human Capital and R&D: unlocking innovative entrepreneurship through HIEs in Italy”, (with F. Ferrante and S. Scicchitano), Proceedings of the Third International Conference of the journal Scuola Democratica. Education and/for Social Justice. Vol. 1: Inequality, Inclusion, and Governance, pp 127-136. Editor: ASSOCIAZIONE “PER SCUOLA DEMOCRATICA” Via Francesco Satolli, 30 00165 – Rome Italy
2018 – “Characteristics of the Great Moderation”, in F. Papadia an T. Välimäki, Central Banking in Turbulent Times, Oxford University Press, Oxford: UK. Pages: 78-82.
2018 – “Empirical Evidence for Money Multipliers”, in F. Papadia an T. Välimäki, Central Banking in Turbulent Times, Oxford University Press, Oxford: UK. Pages: 47-49.
2018 – “The Long-Run Effect of Inflation on GDP Growth”, in F. Papadia an T. Välimäki, Central Banking in Turbulent Times, Oxford University Press, Oxford: UK. Pages: 29-32.
2014 – “Unit Labour Costs and Capital Efficiency in the Euro Area”, (with S. Collignon) in S. Collignon and P. Esposito (eds), Competitiveness in the European Economy, Routledge, London.
2014 – “Are Italy’s and Germany’s Economic Strategies Competitive or Complementary?” (with P. Guerrieri) in S. Collignon and P. Esposito (eds), Competitiveness in the European Economy, Routledge, London.
2013 – “Macroeconomic Imbalances in the Euro Area: the role of external performance” (with P. Guerrieri) in L. Paganetto (ed), Public Debt, Global Governance and Economic Dynamism, Springer, New York.
2012 “European Sovereign Bailouts, Political Risk and the Economic Consequences of Mrs. Merkel” (with S. Collignon and H. Lierse) ARENA Report 3/2012
2012 – “Effects of High-Tech Capital, FDI, and Outsourcing on Demand for Skills in West and East” (with R. Stehrer) in M. Mas and R. Stehrer (eds), Industrial Productivity in Europe: Growth and Crisis, Edward Elgar Publishing;
Books
2017 – “Measuring Competitiveness at Sectoral Level“, (with S. Collignon), European Trade Union Insitute, Bruxelles, 2017.
2015 – “In search of a new equilibrium: macroeconomic imbalances in the Eurozone”, (with P. Canofari, M. Messori, C. Milani), IAI Research Report n.17, January 2015, Edizioni Nuova Cultura.
2014 – “Competitiveness in the European economy”, (editor with S. Collignon) Routledge, London, 2014.
Journal articles and book chapters in Italian
2021 – “Tecnologia e Skill Mismatch”, in Brunetti I., and A. Ricci. 2021. Imprese Lavoro e Politiche Pubbliche: analisi ed evidenze empiriche. INAPP Report 21, pages: 111-127.
2021 – “Regolamentazione ambientale, capitale ICT e produttività: tra sinergie e trade-off” (with R, De Santis and C. Iona Lasinio) Rivista di Politica Economica, Giugno 2021.
2020 – “Skill mismatch e cambiamento tecnologico: evidenze dai dati INAPP-PLUS 2018.” (with S. Scicchitano) in A. Ricci (ed): Imprese, lavoro e politiche pubbliche: analisi ed evidenze empiriche. Rubettino Editore.
2015 – “Costo del Lavoro e riduzione degli squilibri di partite correnti nell’UEM”, (with P. Canofari e M. Messori) in A. Ciccarelli, T. Forcellese (eds), L’Europa del XXI Secolo. Il futuro dell’Unione Europea tra convergenze politico-istituzionali e integrazione socio-economica, Editoriale Scientifica, Napoli, 2015.
2014 – “Il settore dei dispositivi medici in Italia”, (with G. Bizzotto, F. Cincotti, V. Codazzi, M.E. Grisostolo), Rivista di Politica Economica July-Sept. 2014, pp: 67-126.
2012 – “L’Internazionalizzazione dell’Economia Italiana: un’occasione mancata, un’opportunità da cogliere” (with P. Guerrieri), Economia Italiana, n 2/2012, pp. 31-61.
2012 – “Italia e Germania: due modelli di crescita export led a confronto” (with P. Guerrieri), Economia e Politica Industriale/Journal of Industrial and Business Economics, vol 32(2), pp. 17-52
Policy papers
2015 – “Is a Debt Target for the EMU Feasible?”, LUISS-SEP Policy Brief 12/2015
2013 – “Finance of small business firms in times of austerity”. Note for the European Parliament’s Commitee on Economic and Monetary Affairs, July 2013. (with S. Collignon)
2012 – “Implications of the Low Interest Rate Environment for the Real Economy”. Note for the European Parliament’s Commitee on Economic and Monetary Affairs, December 2012. (with S. Collignon)
2012 – “Towards a Genuine Economic and Monetary Union”, Note for the European Parliament’s Commitee on Economic and Monetary Affairs, December 2012. (with S. Collignon)
2012 – “Unconventional Monetary Policy Measures: A Comparison of the ECB, FED and BoE”. Note for the European Parliament’s Commitee on Economic and Monetary Affairs, June 2012. (with S. Collignon and Y. Cui)
2012 – “Competitiveness and Excessive Imbalances: A Balance Sheet Approach”, Note for the European Parliament’s Commitee on Economic and Monetary Affairs, April 2012 (with S. Collignon and Y. Cui)
Working papers
2022 – “Drivers of skill mismatch among Italian graduates: The role of personality traits.” (with S. Scicchitano), GLO Discussion Paper, 1048.
2021 – Bank-based or Market-based Financial Sources: which is better for the EU? (with V. Larocca, M. Messori and M. Mischitelli). LUISS-SEP Working paper 19/2021
2021 – Access to Finance and Sources of Finance: Which influence on the investment of European firms? (with L. Maurin). Forthcoming EIB Working Papers.
2020 – What drives employment-unemployment transitions? Evidence from Italian task-based data. (with N. Cassandro, M. Centra and D. Guarascio), GLO Discussion Papers n. 563. (submitted)
2020 – Educational mismatches, routine biased technological change and unemployment: evidence from Italy. (with S. Scicchitano), INAPP Working Paper n.48. A previous version was published as GLO Discussion Papers n. 465. (submitted)
2019 – “Environmental regulation and productivity growth: main policy challenges” (with R. De Santis and C. Iona Lasinio). LLEE Working Paper Series, n. 153. (submitted)
2019 – “Immigration and Unemployment in Europe: does the core-perihpery dualism matter?” (with S. Collignon and S. Scicchitano) LUISS School of European Political Economy Working Paper 3/2019 published also as INAPP Working Paper n.11
2013 – “Economic Convergence with Divergence in Environmental Quality? Desertification Risk and the Economic Structure of a Mediterranean Country (1960-2010),” (with F. Patriarca, L. Perini, L. Salvati) MPRA Paper 52601, University Library of Munich, Germany.
2012 – “Technological Catching Up, Quality of Exports and Competitiveness” (with E. Cavallaro, M. Mulino and A. Matano), Working Papers 158, University of Rome La Sapienza, Department of Public Economics.
2011 – “Explaining the Performance of Italian Exports During the Crisis: does quality matter?” (with C. Vicarelli), Luiss LAB Working Paper 95/2011
2010 – “Structural Change in the Mozambican Provinces: what do the INE data say?” Quaderni di Ricerca n.13 Dipartimento di Innovazione e Società, Sapienza University of Rome.
2009 – “Effects of High-Tech Capital, FDI, and Outsourcing on Demand for Skills in West and East” (with R. Stehrer). WIIW Working Papers 51
2007 – “The Sector Bias of the Skill Biased Technical Change and the rising skill premium in Transition Economies”, (with Robert Stehrer), WIIW Working Paper 43.
Works in progress and completed papers
– “Social Skills Mismatch and Technological change: the case of Italy” (with S. Scicchitano)
– “Determinants of Unemployment Rates in the EU: should the role of globalization be considered?” (with T. Cesaroni and O. Ricchi)
– “Control Freaks or good parents? Revealing entrepreneurial motivation through managerial strategies” (with F. Ferrante)
Piero Esposito website 