Beniamino Quintieri

Do R&D expenditures really matter for TFP?

Recently, several studies have emphasized the role of R&D expenditure in determining Total Factor Productivity (TFP). In this paper it is shown that the relationship between R&D variables and TFP is far from being established. In particular, by using data for the Italian economy, it is found that the estimated effects of R&D variables on TFP crucially depends on: (i) the way in which the production function, used to derive Solow residuals, is defined; (ii) the numbers of maintained hypotheses used to estimate Solow residuals; (iii) the level of aggregation of the data employed in the empirical analysis.

The Effect of Trade on Employment and Wages in Italian Industry

The paper analyses the labour market impact of international trade on the Italian manufacturing sector. Using data for a panel of manufacturing industries the effects of trade-induced changes in sales on employment and wages are investigated. The evidence suggests that the industry adjustment to demand shocks took place mainly through employment changes. However, increased exposure to foreign competition had a small effect on the Italian labour market, while technological change seems to have a major role in explaining the increase in unemployment.

Some Macroeconomic Effects of Demographic Trends in Italy

According to demographic projections the population will tend to decrease and show a significant ageing in most industrialized countries. The reduction in fertility rates, coupled with continuously increasing life expectancy, will generate, over the next decades, a reduction in total population and a marked increase in the number of aged people, both in absolute and in relative terms. This phenomenon can be expected to bring about major macroeconomic effects arising mainly from the changes in savings, labour supply, government spending and revenue.

Demographic Changes, Public Saving and Tax Policies

According to demographic projections the population will tend to decrease and show a significant ageing in most industrialized countries. The reduction in fertility rates, coupled with continuously increasing life expectancy, will generate, over the next decades, a reduction in total population and a marked increase in the number of aged people, both in absolute and in relative terms. Table 1 and Table 2 show the demographic trends expected for Italy in the next decades.