Fighting the Shadow Economy in Italy: dilemmas and policies effectiveness

Size: px
Start display at page:

Download "Fighting the Shadow Economy in Italy: dilemmas and policies effectiveness"

Transcription

1 Fighting the Shadow Economy in Italy: dilemmas and policies effectiveness Laura Castellucci Abstract: It is commonly thought that the underground economy is so difficult to measure that we can only have an approximate idea of its size. Thanks to several studies that have been carried out, to the great and successful effort by ISTAT to comply with exhaustiveness, to the enlarged availability of data collected by different sources and for different purposes, we are now in a position of concentrating more both on its feature and on the shaping of effective instruments to combat it, rather than on the problem of how to measure it. It emerges an underground economy of a more or less stable size (different sources produce very close estimates) and rather resistant to policies introduced to combat it. In addition to equity reasons, more than sufficient in themselves, a true commitment of fighting it is necessary for the country to regain its high productivity of the past. A due consideration of the structure of our economy, shows the need for firms to innovate more and for public administration to keep up with information technology. No help for this comes from the shadow economy. JEL 017, E60, H26 Paper prepared for the Conference on: Undeclared Work, Tax Evasion and Avoidance: a Momentum for Change in Belgium and Europe Bruxelles, June 2007 Professor of Economic Policy, faculty of Economics,University of Rome Tor Vergata Via Columbia 2, Rome, Italy (dir) (dpt) Fax

2 PROVISIONAL and INCOMPLETE DRAFT Fighting the Shadow Economy in Italy: dilemmas and policies effectiveness. Content: 1. Efforts in producing definitions of SE, methods of measuring it and actual size. 2. Regular and irregular workers and their cyclical behaviour 3. A decomposition by sectors and by geographical area (Center-north vs South). 4. European Union Value Added Tax provisional regime as a means to boost Shadow Economy (SE). 5. Tax amnesties effects. 6. Trends in labour productivity. 7. Assessment and remarks on policies effectiveness. References 1. The debate over the shadow economy, the way of measure it and of understanding its contribution to a country economy performance (under certain respects it may be judgeted as a positive one), has been characterized by periods of great interest giving ways to periods of indifference. This is so not only with respect to research, theoretical and empirical studies, but also with respect to the political agenda and even with respect to the general public concern of the problem which goes hand in hand with the more known and discussed one, that is tax evasion. To effectively combat the underground economy those three components should be in place at the same time. This is to say that good researches on its size, dynamic, features, sector s characteristic ecc., should be provided to politicians determined to combat it on the basis of equity and efficiency considerations and pushed by the general public (their voters) who think that the very existence of a shadow economy (and tax evasion and illegal activities in particular) is indeed a government failure. At present it seems to me quite possible that the three components work in the same direction, although it is probably true that the so called tax morale is not so high and it cannot be gained, or re-gained, so quickly. For sure more good researchers are now available and a sort of (implicit) agreement over the size of our SE is now reached in the sense that, from various methods of estimation and from different data sources, a percentage between 15 17% comes out as the average one (notwithstanding fluctuations over time and regional differences). Furthermore even the controversy about the methods of measuring it, that is about indirect and aggregate methods of the Tanzi type and of energy consumption type, as opposed to direct estimation of tax 2

3 evasion (either direct taxes or value added taxes) seems rather over 1. The remarkable effort produced by ISTAT, not only to comply with SEC93, ESA95 and with OECD 2002 manual, but to provide a method of calculating a true exhausistive GDP 2 has reached the point of regularly releasing official estimates of shadow GDP and of regular and irregular workers. Adding to the ISTAT figures those coming from Tax Authorities as well as from Social Security Agencies, one can have a confident base from which to start going deeper inside the phenomenon in order to understand it better and to figure out which kinds of policy instruments would be effective in reducing it. Finally, definitions are also agreed upon or at least we may safely compare countries figures by checking the definitions used (for example, illegal activities are in general excluded because every country has its own list of illegal activities). In the case of Italy, a distinction is made by Istat between economic and statistical shadow economy. Estimates of economic shadow GDP are provided with respect to a minimum (the so called certain shadow) hypothesis and to a maximum one (the so called presumed ). Table 1 and 2 show, respectively, economic shadow GDP and economic shadow GDP by sectors. Figure 1 shows the shadow employment in terms of full-time equivalent units of labor and 2 gives additional information concerning regular and regular self-employed. 1 Tanzi method is no more viable in the Euro era and debatable any way; energy consumption, problems of parameter ecc.; cross checking of different data sources is more promising as there are many offices/ authorities/agencies responsible for the data collection and analysis on tax fraud and evasion. The most important being: Central Statistical Office; Tax Authorities; Revenue Guard Corps; Health Authorities; Chambers of Commerce; Local Government, for real estate evasion; Labour Market Authorities (INAIL); Trade Unions; Social Securities Institutions: INPS,.). If there is a shortcoming is the insufficient cooperation, and some times even the lack of understanding each others, among those entities. 2 I am not a profound expert in the subject but I know that ISTAT method has been suggested as a benchmark for other OECD countries. 3

4 4

5 5

6 2. An interesting feature of the labour market to analyse in some details, comes from the behaviour of the different components of the labour market, namely the shadow employment, the regular employment and the regular self-employment, over the cycle. Actually I take as very convincing the idea of Bovi (2005) who considers that for (every?) firms there are two types of labour input: one regular and one black or shadow. While the black one is, of course, untaxed, it may also be less productive but also more flexible. If this were case, it should be possible to capture those feature trough empirical investigation and econometric tests. Actually looking at Fig. 3 one grasps the different behaviour of the various components. At first glance it seems that all the inputs by and large follow a procyclical behaviour. Correlation coefficients are positive, confirming the impression. There is some quantitative difference, supporting the presumed effects linked to the qualitative peculiarities of the production factors. The correlation between GDP and shadow employment is 57%, self employment scores 44% and private sector regular employees records a rigid 21%. The reduction in the volatility of self employment may be tentatively associated with the introduction, in the course of 1996, of free lance coordinated workers (Co.Co.Co. in Italian, that is coordinate and continual collaboration). In fact they are classified as self employed in the national accounts; firms exploited this opportunity to hire workers repeatedly as CoCoCo. In practice firms use them as sort of low-cost permanent employment. 3 Actually, as one would expect, irregular workers are more flexible and therefore used as a buffer during the cycle 4. 3 Bovi M., The dark and independent side of the italian labour market in Labour, 19 (4), The same function of the underground economy of smoothing the cycle has been found by Chiarini-Marzano, (2007, Agenzia delle Entrate, Documenti di discussione, n.1). By using the undeclared tax base of Value Added Tax, due in turn to Marigliani-Pisani (2006, n. 1. Documenti di lavoro, Agenzia delle entrate, Le basi imponibili dell IVA. Aspetti generali e principali risultati per il periodo ) as a proxy for the shadow GDP they found this income smoothing effect: they found a standard deviation of (real) GDP over the period of 1.4% while the standard deviation of regular GDP, that is total GDP netted out for the undeclared tax base of Value Added Tax, over the same period was of 2%. There are reasons to believe, and empirical studies to confirm, that the shadow economy does play a sort of buffer role during the cycle. 6

7 3. Furthermore a brief glance at shadow employment by sectors as it appears from figura 4., shed some light in the importance of considering not only the aggregate labour market but it also raises some puzzling (dilemma?) questions. While it is by and large true that after 1998 in all sectors the shadow employment, calculated in terms of irregular workers over total, tends to clearly decrease in two sectors this was not the case. The two sectors are Agriculture&fishing and Transport&communication. For the first one we may think that the effect is actually due to the reduction in the number of the regular ones; even a small increase in the number of irregular combined with the reduction in the number of regular workers, may produce such a great increase, and against the stream, pictured in the corresponding figure. More difficult is to interpret the trend in the transport and communication sector. Finally we can tentatively, and probably from a somehow optimistic position, interpret the last sharp decrease in the trend of irregular employment in the building sector (incidentally the general wisdom considers this sector to be greatly characterized by black workers both in the past and at present, with more immigrant in recent years) as a response to the introduction of the income tax incentive for households in terms of deduction (within a ceiling of 41% when first introduced in year 2000 and now shrank at 36%) of maintenance/renovation expenses for houses. (But it does not explain the by now famous mistery concerning year1998). 7

8 4. One aspect the EU should pay attention to, is the fact that once we come at the problem of coordination/cooperation among the various administration of the numerous countries belonging to the EU (25 or 27 by now), they are in general very slow to adapt 8

9 their own procedures to the social necessity of the community. Besides being a general threat to cohesion this very fact may be detrimental to every countries revenue and may also boost shadow economy when it concerns the community value added tax. This tax is a very important tax from the revenue point of view in all the countries. In Italy it contributes the 26% of total revenues and similar figures are found in the other countries. At present the VAT is subject to temporary regime that makes the tax very vulnerable to the tax fraud and evasion with respect to the intra-community exchanges. The still temporary regime is based on the destination principle, that means that the traded goods leave the country of production without having paid the tax and only in the country of destination they will be taxed according to the local rules. It is not that difficult to imagine how much VAT gap can be created through missing trader, buffer, firms. Adding to this the fact that (at least in Italy) VAT is based on self assessment and self payment, there is no scope for tax authorities to control, not to mention the impossibilities of intervening in countries of different nationalities. The threat of losing revenue is not an abstract one; just consider that some countries studies carried out on the results obtained by each country s activities to contrast such practices and transmitted to the European Commission in 2004, estimate that the missing revenue is no less than 10% of net revenue stemming from the intra-community exchange. That is to say something in between 15 and 20 billions. Tax evasion and tax fraud could be prevented; one way is the one chosen by the EU according to which the origin principle will replace the destination principle in the final regime (the problem is how long it takes the process of finishing with the temporary one!); another would be to transform the tax in a federal one or to really harmonize tax base and tax rates for which administrative cooperation is indeed necessary. 5. It does not come as a surprise the fact that tax amnesties are quite bad in terms of tax morale, tax evasion and even tax revenues in the long run. See Fig. 5. What is to be studied in more details is however the effect in terms of firms dimensions. While it comes to enquiry into the dimension of firms which evade the most, every research studies and institutions in charge of collecting data, including ISTAT, will agree on the fact that the smaller the size the easier is tax evasion. Actually from the study by Bernasconi-La Pecorella on data on tax amnesties of the last thirty years it does not emerge that small business took advantage of tax amnesties (another sort of dilemma). Everybody will agree that a constant cause of having underground economy in Italy is precise the structure of our economy mainly based on small and very small firms. In other words the small dimensions of our firms have 9

10 been always regarded as a source of weakness for the system under many respect: competition, innovation, and evasion. 6. Finally as I consider it very important, a glance to different types of labour productivities through the help of Fig. 6. The figure can contribute to shed some light into a debate that has equally involved Europe and US, that is the one concerning the slow down of productivity in different years. Limiting ourselves to look for possible explanation applicable to my country I consider the cyclical behaviour of the two types of labour inputs: regular and shadow. It emerges from figure 6 that except for the last two years, the shadow workers productivity is responsible for the slowdown. The finding, interested in itself, underling something that I may again call dilemma, this time a policy intervention dilemma. If a policy instrument is effective in legalizing immigrant and transforming them, so to speak, in regular workers, tax revenue and social security revenue will increase but at the same time the average productivity will be affected too. And it will not be for the good as the increase in employment will come from slow skilled workers. 10

11 References -Bernasconi M.-Lapecorella F., I condoni nel sistema tributario italiano, in La Finanza Pubblica Rapporto 2006, Il Mulino -Bovi M., The dark and independent side of the italian labour market in Labour, 19 (4), Bovi M.-Castellucci L., What do we know about the size of the underground economy in Italy beyond the common wisdom. Some empirically tested proposition, WP Ceis, 1999, n Bovi-Castellucci,Cosa sappiamo dell economia sommersa in Italia?, in Economia Pubblica, 2001, n.6 -Castellucci L.,The role of the underground economy in Italy and current policies to cambat it., paper presented in 2003 at the Belgia-European Colloqium on Undeclared Work. -Chiarini-Marzano, 2007, Agenzia delle Entrate, Documenti di discussione, n.1 -Fiorio C.-Zanardi A., L evasione fiscale cosa ne pensano gli italiani?, in La Finanza Pubblica italiana. Rapporto 2006, il Mulino, Marigliani-Pisani (2006, n. 1. Documenti di lavoro, Agenzia delle entrate, Le basi imponibili dell IVA. Aspetti generali e principali risultati per il periodo ) 11

Can we rely upon fiscal policy estimates in countries with a tax evasion of 15% of GDP?

Can we rely upon fiscal policy estimates in countries with a tax evasion of 15% of GDP? Can we rely upon fiscal policy estimates in countries with a tax evasion of 15% of GDP? Raffaella Basile, Ministry of Economy and Finance, Dept. of Treasury Bruno Chiarini, University of Naples Parthenope,

More information

Section I. Context Chapter 1. Country s context and current equity situation.

Section I. Context Chapter 1. Country s context and current equity situation. 1 Equity in education: dimension, causes and policy responses. Country Analytical Report Russia Outline Russian CAR will follow structural requirements offered in General Guidelines. Outline from this

More information

Why a Floating Exchange Rate Regime Makes Sense for Canada

Why a Floating Exchange Rate Regime Makes Sense for Canada Remarks by Gordon Thiessen Governor of the Bank of Canada to the Chambre de commerce du Montréal métropolitain Montreal, Quebec 4 December 2000 Why a Floating Exchange Rate Regime Makes Sense for Canada

More information

Monetary policy rules and their application in Russia. Economics Education and Research Consortium Working Paper Series ISSN 1561-2422.

Monetary policy rules and their application in Russia. Economics Education and Research Consortium Working Paper Series ISSN 1561-2422. Economics Education and Research Consortium Working Paper Series ISSN 1561-2422 No 04/09 Monetary policy rules and their application in Russia Anna Vdovichenko Victoria Voronina This project (02-230) was

More information

CHAPTER 11. AN OVEVIEW OF THE BANK OF ENGLAND QUARTERLY MODEL OF THE (BEQM)

CHAPTER 11. AN OVEVIEW OF THE BANK OF ENGLAND QUARTERLY MODEL OF THE (BEQM) 1 CHAPTER 11. AN OVEVIEW OF THE BANK OF ENGLAND QUARTERLY MODEL OF THE (BEQM) This model is the main tool in the suite of models employed by the staff and the Monetary Policy Committee (MPC) in the construction

More information

JURISDICTIONS AND AGGRESSIVE TAX PLANNING AND A POSSIBLE STRATEGY AT EU LEVEL SEMINAR JULY 17 2012

JURISDICTIONS AND AGGRESSIVE TAX PLANNING AND A POSSIBLE STRATEGY AT EU LEVEL SEMINAR JULY 17 2012 DISCUSSION PAPER ON POSSIBLE FUTURE MEASURES AGAINST NON-COOPERATIVE JURISDICTIONS AND AGGRESSIVE TAX PLANNING AND A POSSIBLE STRATEGY AT EU LEVEL SEMINAR JULY 17 2012 The challenges raised by non-cooperative

More information

Over the past several years, Americans have

Over the past several years, Americans have Industry Securities Industry Bears, bulls, and brokers: employment trends in the securities industry in the securities industry strongly correlates with stock market value; however, market volume does

More information

Dualization and crisis. David Rueda

Dualization and crisis. David Rueda Dualization and crisis David Rueda The economic crises of the 20 th Century (from the Great Depression to the recessions of the 1970s) were met with significant increases in compensation and protection

More information

The Elasticity of Taxable Income: A Non-Technical Summary

The Elasticity of Taxable Income: A Non-Technical Summary The Elasticity of Taxable Income: A Non-Technical Summary John Creedy The University of Melbourne Abstract This paper provides a non-technical summary of the concept of the elasticity of taxable income,

More information

CV Short Version Mauro Marè

CV Short Version Mauro Marè CV Short Version Mauro Marè October, 17, 1959, married, three sons, Italian citizen, mauro.mare@fastwebnet.it Academic Studies Mauro Marè studied Economics at the University of Rome La Sapienza (1979-1984),

More information

Concepts. Economic psychology: from tax compliance and evading to psychological contract. Basic model of tax evasion. Economic theory of crime

Concepts. Economic psychology: from tax compliance and evading to psychological contract. Basic model of tax evasion. Economic theory of crime Economic psychology: from tax compliance and evading to psychological contract Velli Parts, MSc Concepts tax avoidance - an attempt to reduce tax payments by legal means (e.g. by exploiting taxloopholes)

More information

Employment Relations Comment

Employment Relations Comment Employment Relations Comment The productivity challenge and what the next government should do about it February 2015 Employment Relations Comment will be distributed free of charge via email. Copies can

More information

Inflation. Credit. Coincident indicator (Ita-coin) and Italian GDP (1) (percentage changes)

Inflation. Credit. Coincident indicator (Ita-coin) and Italian GDP (1) (percentage changes) NUMBER 16 FEBRUARY 216 Economic activity and employment Foreign trade and competitiveness Inflation Credit The Public Finances Macroeconomic projections 1 7 8 11 12 Directorate general for economics, statistics

More information

website: www.campagneinlotta.org email: campagneinlotta@gmail.com mobile: 3661299942

website: www.campagneinlotta.org email: campagneinlotta@gmail.com mobile: 3661299942 KNOW YOUR RIGHTS We are the Network Campagne In Lotta, and with this leaflet we would like to share with foreign workers useful information on agricultural work, with and without contract, on residence

More information

Redistributive effects of changes in indirect taxation 1

Redistributive effects of changes in indirect taxation 1 Redistributive effects of changes in indirect taxation 1 Alessandro Brunetti 2, Maria Grazia Calza 3 Abstract The aim of the paper is to outline the methodological solution adopted in modelling the effects

More information

The EU Enlargement, and Immigration from Eastern Europe

The EU Enlargement, and Immigration from Eastern Europe The EU Enlargement, and Immigration from Eastern Europe Olivier Blanchard October 2001 Let me start by sketching a toy model of immigration. Think of all the capital as being in the West (Western Europe).

More information

THE IMPACT OF MACROECONOMIC FACTORS ON NON-PERFORMING LOANS IN THE REPUBLIC OF MOLDOVA

THE IMPACT OF MACROECONOMIC FACTORS ON NON-PERFORMING LOANS IN THE REPUBLIC OF MOLDOVA Abstract THE IMPACT OF MACROECONOMIC FACTORS ON NON-PERFORMING LOANS IN THE REPUBLIC OF MOLDOVA Dorina CLICHICI 44 Tatiana COLESNICOVA 45 The purpose of this research is to estimate the impact of several

More information

ECONOMIC ACTIVITY AND EMPLOYMENT FOREIGN TRADE AND COMPETITIVENESS INFLATION CREDIT THE PUBLIC FINANCES

ECONOMIC ACTIVITY AND EMPLOYMENT FOREIGN TRADE AND COMPETITIVENESS INFLATION CREDIT THE PUBLIC FINANCES NUMBER 99 JULY 21 ECONOMIC ACTIVITY AND EMPLOYMENT FOREIGN TRADE AND COMPETITIVENESS INFLATION CREDIT THE PUBLIC FINANCES MACROECONOMIC PROJECTIONS 1 7 8 11 12 Directorate general for economics, statistics

More information

Social Innovation beyond the State

Social Innovation beyond the State Social Innovation beyond the State Towards a smart mix of first and second (generation) welfare Maurizio Ferrera Riunione straordinaria del Gruppo III "Attività diverse" del CESE Promuovere l'innovazione

More information

Chapter 18. MODERN PRINCIPLES OF ECONOMICS Third Edition

Chapter 18. MODERN PRINCIPLES OF ECONOMICS Third Edition Chapter 18 MODERN PRINCIPLES OF ECONOMICS Third Edition Fiscal Policy Outline Fiscal Policy: The Best Case The Limits to Fiscal Policy When Fiscal Policy Might Make Matters Worse So When Is Fiscal Policy

More information

New Monetary Policy Challenges

New Monetary Policy Challenges New Monetary Policy Challenges 63 Journal of Central Banking Theory and Practice, 2013, 1, pp. 63-67 Received: 5 December 2012; accepted: 4 January 2013 UDC: 336.74 Alexey V. Ulyukaev * New Monetary Policy

More information

AMEDEO ARGENTIERO. 2007 Visiting Ph.D. Student, spring semester, Massachusetts Institute of Technology (USA)

AMEDEO ARGENTIERO. 2007 Visiting Ph.D. Student, spring semester, Massachusetts Institute of Technology (USA) AMEDEO ARGENTIERO PERSONAL DETAILS Date and Place of Birth: May 10, 1978 in Castellammare di Stabia (Naples), Italy. Citizenship: Italian. Office address: University of Perugia, Department of Economics,

More information

A European Unemployment Insurance Scheme

A European Unemployment Insurance Scheme A European Unemployment Insurance Scheme Necessary? Desirable? Optimal? Grégory Claeys, Research Fellow, Bruegel Zsolt Darvas, Senior Fellow, Bruegel Guntram Wolff, Director, Bruegel July, 2014 Key messages

More information

THE U.S. HOUSEHOLD SAVINGS RATE AND CONSUMPTION 3 March 2009, additions 4 March see http://www.closemountain.com/publications.

THE U.S. HOUSEHOLD SAVINGS RATE AND CONSUMPTION 3 March 2009, additions 4 March see http://www.closemountain.com/publications. THE U.S. HOUSEHOLD SAVINGS RATE AND CONSUMPTION 3 March 2009, additions 4 March see http://www.closemountain.com/publications.html for updates T. S. Coleman PhD Close Mountain Advisors www.closemountain.com

More information

COMMUNICATION FROM THE COMMISSION. replacing the Communication from the Commission on

COMMUNICATION FROM THE COMMISSION. replacing the Communication from the Commission on EUROPEAN COMMISSION Brussels, 28.10.2014 COM(2014) 675 final COMMUNICATION FROM THE COMMISSION replacing the Communication from the Commission on Harmonized framework for draft budgetary plans and debt

More information

COMMISSION OPINION. of XXX. on the Draft Budgetary Plan of ITALY

COMMISSION OPINION. of XXX. on the Draft Budgetary Plan of ITALY EUROPEAN COMMISSION Brussels, XXX [ ](2013) XXX draft COMMISSION OPINION of XXX on the Draft Budgetary Plan of ITALY EN EN COMMISSION OPINION of XXX on the Draft Budgetary Plan of ITALY GENERAL CONSIDERATIONS

More information

RIA: Benefits and Application

RIA: Benefits and Application RIA: Benefits and Application Scott Jacobs Managing Director, Jacobs and Associates WORKSHOP ON GOOD REGULATORY PRACTICE WTO, Geneva 18-19 MARCH 2008 1 The Golden Age of Regulation Regulation is a normal

More information

Designing a European Fiscal Union: Lessons from the Experiences of Fiscal Federations

Designing a European Fiscal Union: Lessons from the Experiences of Fiscal Federations Designing a European Fiscal Union: Lessons from the Experiences of Fiscal Federations 1 The Sample 13 federations: Argentina, Australia, Austria, Belgium, Brazil, Canada, Germany, India, Mexico, South

More information

The Employment Crisis in Spain 1

The Employment Crisis in Spain 1 The Employment Crisis in Spain 1 Juan F Jimeno (Research Division, Banco de España) May 2011 1 Paper prepared for presentation at the United Nations Expert Meeting The Challenge of Building Employment

More information

EXTRATERRITORIAL ENFORCEMENT OF TAX LAWS

EXTRATERRITORIAL ENFORCEMENT OF TAX LAWS EXTRATERRITORIAL ENFORCEMENT OF TAX LAWS Rita Correia da Cunha 1- ABSTRACT Extraterritorial enforcement of tax laws refers to the attempt of states to collect revenue beyond their territories. It is a

More information

Measuring GDP and Economic Growth

Measuring GDP and Economic Growth 20 Measuring GDP and Economic Growth After studying this chapter you will be able to Define GDP and explain why GDP equals aggregate expenditure and aggregate income Explain how Statistics Canada measures

More information

Economic Outlook for Europe and Finland

Economic Outlook for Europe and Finland Economic Outlook for Europe and Finland Finnish-British Chamber of Commerce 15 March 213 Seppo Honkapohja Member of the Board Bank of Finland 1 World economy: World industrial output improved, but international

More information

Fiscal federalism in Italy at a glance

Fiscal federalism in Italy at a glance Fiscal federalism in Italy at a glance Distribution of fiscal revenues (2006) Local Governments 7% Distribution of public expenditure (2006) Local Governments 19% Regions 24% State 53% Source: Region of

More information

1. Fill in the blanks for the following sentence: A rise in taxes on households will shift AD to the, this will push.

1. Fill in the blanks for the following sentence: A rise in taxes on households will shift AD to the, this will push. Homework 16 1. Fill in the blanks for the following sentence: A rise in taxes on households will shift AD to the, this will push. A. right; down B. left; down C. left; up D. right; up 2. During a recession,

More information

CULTURAL INTEGRATION IN EUROPE: THE ITALIAN CONTEXT. Alberto Bisin* and Eleonora Patacchini**

CULTURAL INTEGRATION IN EUROPE: THE ITALIAN CONTEXT. Alberto Bisin* and Eleonora Patacchini** CULTURAL INTEGRATION IN EUROPE: THE ITALIAN CONTEXT Alberto Bisin* and Eleonora Patacchini** Abstract We explore economic and cultural integration patterns for different immigrant groups in Italy, from

More information

CURRICULUM VITAE Giovanni Tria

CURRICULUM VITAE Giovanni Tria CURRICULUM VITAE Giovanni Tria 1. Family name: Tria 2. First names: Giovanni 3. Date of birth: 28/9/1948 4. Nationality: Italian 5. Education: Degree in law Institution (Date from Date to) Degree(s) or

More information

Session 12. Aggregate Supply: The Phillips curve. Credibility

Session 12. Aggregate Supply: The Phillips curve. Credibility Session 12. Aggregate Supply: The Phillips curve. Credibility v Potential Output and v Okun s law v The Role of Expectations and the Phillips Curve v Oil Prices and v US Monetary Policy and World Real

More information

The Concept and Practice of Social Enterprise in Europe. The Italian Experience

The Concept and Practice of Social Enterprise in Europe. The Italian Experience The Concept and Practice of Social Enterprise in Europe. The Italian Experience Carlo Borzaga EURICSE Social Entrepreneurship The Possibilities and Prospects Belgrade April 26th 2010 Concepts used non-profit

More information

Summary of the Esa2010 revision of National Accounts

Summary of the Esa2010 revision of National Accounts 9 September 2014 Summary of the Esa2010 revision of National Accounts Year 2011 In conjunction with the introduction of the new European system of national and regional accounts (Esa2010) Manual, Italy

More information

Programa Nacional de Reformas de España 2016 EXECUTIVE SUMMARY

Programa Nacional de Reformas de España 2016 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Over the last four years, the Spanish Government has put in place an ambitious reform agenda that has transformed the Spanish economy. This agenda has been built over three pillars: fiscal

More information

CeRM - Competitività, Regole, Mercati (Roma, www.cermlab.it)

CeRM - Competitività, Regole, Mercati (Roma, www.cermlab.it) MPRA Munich Personal RePEc Archive The Multipillar System for Health Care Financing: Thirteen Good Reasons for Open Capitalisation Funds, Covering both Pension and Health Care Provisions Fabio Pammolli

More information

(DRAFT)( 2 ) MOTION FOR A RESOLUTION

(DRAFT)( 2 ) MOTION FOR A RESOLUTION 05 Motions for resolutions, and other B8 documents 05_09. Motions to wind up debate on statements by other institutions: Rule 123(2) Cover page EUROPEAN PARLIAMENT 2014 2019 Plenary sitting [.2014] B[8-/2014](

More information

COMMISSION STAFF WORKING DOCUMENT. on the implementation of the definitive VAT regime for intra-eu trade

COMMISSION STAFF WORKING DOCUMENT. on the implementation of the definitive VAT regime for intra-eu trade EUROPEAN COMMISSION Brussels, 29.10.2014 SWD(2014) 338 final COMMISSION STAFF WORKING DOCUMENT on the implementation of the definitive VAT regime for intra-eu trade EN EN 1. INTRODUCTION In international

More information

Labour Market Responses to the Abolition of Compulsory Superannuation. by Louise Carter 1

Labour Market Responses to the Abolition of Compulsory Superannuation. by Louise Carter 1 Labour Market Responses to the Abolition of Compulsory Superannuation by Louise Carter 1 Economics Program School of Economics and Commerce University of Western Australia Abstract: This paper aims to

More information

IRSG Opinion on Joint Discussion paper on Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs)

IRSG Opinion on Joint Discussion paper on Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs) EIOPA-IRSG-15-03 IRSG Opinion on Joint Discussion paper on Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs) Executive Summary It is of utmost importance

More information

Tax on Compensation of Capital: A Conceivable EU Initiative

Tax on Compensation of Capital: A Conceivable EU Initiative Volume 41, Number 10 March 13, 2006 Tax on Compensation of Capital: A Conceivable EU Initiative by Lorenz Jarass and Gustav M. Obermair Reprinted from Tax Notes Int l, March 13, 2006, p. 887 C urrent &

More information

Decomposition of External Capital Inflows and Outflows in the Small Open Transition Economy (The Case Analysis of the Slovak Republic)

Decomposition of External Capital Inflows and Outflows in the Small Open Transition Economy (The Case Analysis of the Slovak Republic) PANOECONOMICUS, 2008, 2, str. 219-231 UDC 330.342(437.6) ORIGINAL SCIENTIFIC PAPER Decomposition of External Capital Inflows and Outflows in the Small Open Transition Economy (The Case Analysis of the

More information

COLLECTING WHAT IS DUE: FOR FAIR AND EFFECTIVE TAX SYSTEMS IN EUROPE

COLLECTING WHAT IS DUE: FOR FAIR AND EFFECTIVE TAX SYSTEMS IN EUROPE Resolution By the European Confederation of Independent Trade Unions (CESI) COLLECTING WHAT IS DUE: FOR FAIR AND EFFECTIVE TAX SYSTEMS IN EUROPE 1 Author: Trade council Central Administrations and Finance,

More information

TAXATION. 1. More Growth-Friendly Tax Structures: tax shifts 1.1. The evolution of total tax burden in the European Union

TAXATION. 1. More Growth-Friendly Tax Structures: tax shifts 1.1. The evolution of total tax burden in the European Union TAXATION The Annual Growth Survey identifies several categories of tax policy challenges currently faced by EU Member States. These tax policy challenges concern the potential of Member States for making

More information

Factors Impacting Dairy Profitability: An Analysis of Kansas Farm Management Association Dairy Enterprise Data

Factors Impacting Dairy Profitability: An Analysis of Kansas Farm Management Association Dairy Enterprise Data www.agmanager.info Factors Impacting Dairy Profitability: An Analysis of Kansas Farm Management Association Dairy Enterprise Data August 2011 (available at www.agmanager.info) Kevin Dhuyvetter, (785) 532-3527,

More information

Introduction to the Firm

Introduction to the Firm Introduction to the Firm FIRM PROFILE MTEA is an integrated tax, corporate, administrative and business consulting firm oriented to domestic clients as well as to international clients establishing business

More information

AGREEMENT ON PROPOSALS FOR TRIPARTITE NEGOTIATIONS TO STRENGTHEN ECONOMIC GROWTH AND CREATE JOBS

AGREEMENT ON PROPOSALS FOR TRIPARTITE NEGOTIATIONS TO STRENGTHEN ECONOMIC GROWTH AND CREATE JOBS AGREEMENT ON PROPOSALS FOR TRIPARTITE NEGOTIATIONS TO STRENGTHEN ECONOMIC GROWTH AND CREATE JOBS The Spanish economy has entered a phase of growth. However, the duration and intensity of the crisis and

More information

25*$1,6$7,21)25(&2120,&&223(5$7,21$1''(9(/230(17

25*$1,6$7,21)25(&2120,&&223(5$7,21$1''(9(/230(17 25*$1,6$7,21)25(&2120,&&223(5$7,21$1''(9(/230(17 7D[3ROLF\5HIRUPVLQ,WDO\ &(175()257$;32/,&

More information

Reforms, Finance, and Current Accounts

Reforms, Finance, and Current Accounts Discussion of paper by Giuseppe Bertola and Anna Lo Prete Reforms, Finance, and Current Accounts Marcel Fratzscher European Central Bank CEPR Fourth Annual Workshop on Global Interdependence EUI - Florence,

More information

Top Incomes throughout the Great Recession

Top Incomes throughout the Great Recession Top Incomes throughout the Great Recession Emmanuel Saez UC Berkeley Rodolfo Debenedetti Lecture December 2012 1 INTRODUCTION Free market economies generate substantial inequality Main criticism of capitalism

More information

Comment on the Economic and Financial Outlook. by Minister of Economy and Finance Tommaso Padoa-Schioppa

Comment on the Economic and Financial Outlook. by Minister of Economy and Finance Tommaso Padoa-Schioppa Comment on the Economic and Financial Outlook by Minister of Economy and Finance Tommaso Padoa-Schioppa Rome, 16 March 2007 Comment on the Economic and Financial Outlook The good economic and financial

More information

The conflict of employment and payroll taxes

The conflict of employment and payroll taxes The conflict of employment and payroll taxes Human input in the process of providing goods or services is in a class by itself. In fact, it might actually be the only real factor of production It is thus

More information

Forecasting Chinese Economy for the Years 2013-2014

Forecasting Chinese Economy for the Years 2013-2014 Forecasting Chinese Economy for the Years 2013-2014 Xuesong Li Professor of Economics Deputy Director of Institute of Quantitative & Technical Economics Chinese Academy of Social Sciences Email: xsli@cass.org.cn

More information

between Italy and Switzerland

between Italy and Switzerland Roadmap on the Way Forward in Fiscal and Financial Issues between Italy and Switzerland Taking note of the recent developments in the area of international taxation, in particular: the commitment of the

More information

European Payment Card Systems for the 21 st Century. A paper from MasterCard Europe

European Payment Card Systems for the 21 st Century. A paper from MasterCard Europe U European Payment Card Systems for the 21 st Century A paper from MasterCard Europe For four decades, MasterCard Europe 1 has been working successfully with European banks to deliver secure, efficient

More information

Chapter 7 Employment and Unemployment Macroeconomics In Context (Goodwin, et al.)

Chapter 7 Employment and Unemployment Macroeconomics In Context (Goodwin, et al.) Chapter 7 Employment and Unemployment Macroeconomics In Context (Goodwin, et al.) Chapter Overview This chapter introduces you to standard macro labor topics such the definition of the unemployment rate,

More information

Summary. Developing with Jobs

Summary. Developing with Jobs Do not publish or DiStribute before 00:01 Gmt on tuesday 27 may 2014 Summary Developing with Jobs World of Work Report 2014 Developing with jobs Executive Summary INTERNATIONAL LABOUR ORGANIZATION RESEARCH

More information

Questioni di Economia e Finanza

Questioni di Economia e Finanza Questioni di Economia e Finanza (Occasional Papers) The evolution of bad debt in Italy during the global financial crisis and the sovereign debt crisis: a counterfactual analysis Number September 216 by

More information

12th Global Forum on Tourism Statistics Section 3 Measuring the tourism economy and labour market

12th Global Forum on Tourism Statistics Section 3 Measuring the tourism economy and labour market 12th Global Forum on Tourism Statistics Section 3 Measuring the tourism economy and labour market THE CONTRIBUTION OF THE INBOUND TOUR OPERATING BUSINESS TO THE ITALIAN ECONOMY Analysing the production

More information

STABILITY PROGRAMME 2014-2017

STABILITY PROGRAMME 2014-2017 STABILITY PROGRAMME 2014-2017 COUNCIL OF MINISTERS APRIL 30 2014 Stability Programme 2014-2017 The Council of Ministers has approved today the referral to Brussels of: The Stability Programme 2014-2017,

More information

It is both an honour and a pleasure for me to be here and to celebrate with

It is both an honour and a pleasure for me to be here and to celebrate with Drivers for change in payment and securities settlement systems Gertrude Tumpel-Gugerell European Central Bank Introduction It is both an honour and a pleasure for me to be here and to celebrate with you

More information

Household wealth and retirement savings

Household wealth and retirement savings Household wealth and retirement savings What we have learned from a joint research with OECD and OEE Daniele Fano Head of the Pioneer Global Asset Management Unit Introduction Retirement is one of the

More information

CREATING AN INNOVATION AGENDA TO GENERATE SUSTAINABLE GROWTH, ENERGY EFFICIENCY AND JOBS IN EUROPE

CREATING AN INNOVATION AGENDA TO GENERATE SUSTAINABLE GROWTH, ENERGY EFFICIENCY AND JOBS IN EUROPE CREATING AN INNOVATION AGENDA TO GENERATE SUSTAINABLE GROWTH, ENERGY EFFICIENCY AND JOBS IN EUROPE BERT COLIJN AND BART VAN ARK NEUJOBS DELIVERABLE NO. 3.9 A discussion brief focusing on: Abstract The

More information

ETUC resolution on tackling tax evasion, avoidance and tax havens

ETUC resolution on tackling tax evasion, avoidance and tax havens ETUC resolution on tackling tax evasion, avoidance and tax havens Adopted at the ETUC Executive Committee on 10-11 March 2015 There has been a very substantial growth in tax avoidance, which together with

More information

Thomas Piketty Academic year 2013-2014. Lecture 1: Taxes & transfers: why & how much?

Thomas Piketty Academic year 2013-2014. Lecture 1: Taxes & transfers: why & how much? Public Economics: Tax & Transfer Policies (Master PPD & APE, Paris School of Economics) Thomas Piketty Academic year 2013-2014 Lecture 1: Taxes & transfers: why & how much? (October 1 st 2013) (check on

More information

Cloud Computing Survey Perception of the companies. DPDP - Macedonia

Cloud Computing Survey Perception of the companies. DPDP - Macedonia Cloud Computing Survey Perception of the companies DPDP - Macedonia Survey regarding the awareness of the companies in relation to Cloud computing in Macedonia Executive summary The survey was conducted

More information

Fiscal devaluation: the case of Portugal

Fiscal devaluation: the case of Portugal Fiscal devaluation: the case of Portugal Taxes and competitiveness with a fixed exchange rate Francesco Franco Nova SBE March 2, 2012 Francesco Franco Fiscal devaluation: the case of Portugal 1/34 Outline

More information

Ministry of Economic Development

Ministry of Economic Development Ministry of Economic Development Department of Communications Contribution of ICT to economic growth in Italy: Input Output analysis DEPARTMENT OF COMMUNICATIONS Relatore: n Claudio Di Carlo claudio.dicarlo@sviluppoeconomico.gov.it

More information

UK Trade Statistics and the Impact of Missing Trader Intra- Community Fraud

UK Trade Statistics and the Impact of Missing Trader Intra- Community Fraud UK Trade Statistics and the Impact of Missing Trader Intra- Community Fraud Caroline Lakin Trade in Goods Branch Balance Of Payments Division Drummond Gate London UK caroline.lakin@ons.gsi.gov.uk Sandra

More information

Financing public expenditure: some key figures at EU and national levels

Financing public expenditure: some key figures at EU and national levels Briefing Financing public expenditure: some key figures at EU and national levels The Member States' structure of revenue is stable over time and their sources of revenue are diversified. Moreover, the

More information

COMMISSION STAFF WORKING DOCUMENT. Analysis of the draft budgetary plan of ITALY. Accompanying the document COMMISSION OPINION

COMMISSION STAFF WORKING DOCUMENT. Analysis of the draft budgetary plan of ITALY. Accompanying the document COMMISSION OPINION EUROPEAN COMMISSION Brussels, 15.11.2013 SWD(2013) 606 final COMMISSION STAFF WORKING DOCUMENT Analysis of the draft budgetary plan of ITALY Accompanying the document COMMISSION OPINION on the draft budgetary

More information

The Legal Origins of Corporate Social Responsibility

The Legal Origins of Corporate Social Responsibility The Legal Origins of Corporate Social Responsibility Leonardo Becchetti 1 Rocco Ciciretti 2 Pierluigi Conzo 3 1 University of Rome Tor Vergata 2 University of Rome Tor Vergata, CEIS and RCEA-Rimini 3 University

More information

Poverty and income growth: Measuring pro-poor growth in the case of Romania

Poverty and income growth: Measuring pro-poor growth in the case of Romania Poverty and income growth: Measuring pro-poor growth in the case of EVA MILITARU, CRISTINA STROE Social Indicators and Standard of Living Department National Scientific Research Institute for Labour and

More information

GDP and National Accounts: key concepts National Accounts (Part A)

GDP and National Accounts: key concepts National Accounts (Part A) SUMMER SCHOOL ON MEASUREMENT OF WELL-BEING AND SOCIETAL PROGRESS Pisa 9-13 September 2013 GDP and National Accounts: key concepts National Accounts (Part A) Alessandra Coli, University of Pisa a.coli@ec.unipi.it

More information

Austerity policy and consolidation measures hit EU SMEs hardest. Chart 1. SME Business Climate Index 64,7 59,3 55,1

Austerity policy and consolidation measures hit EU SMEs hardest. Chart 1. SME Business Climate Index 64,7 59,3 55,1 55,1 56,4 59,3 60,7 58,8 64,7 65,5 64,1 69,2 67,5 73,2 72,1 70,8 70,5 78,7 78,6 72,6 75,9 75,5 75,9 The EU Craft and SME Barometer 2012/H2 The EU in recession: SME Climate Index down to 67.5 Austerity

More information

Forecasts of Macroeconomic Developments, State Revenues from Taxes and Revenue from Other Sources, 2013-2014

Forecasts of Macroeconomic Developments, State Revenues from Taxes and Revenue from Other Sources, 2013-2014 Ministry of Finance Chief Economist - Research, State Revenue and International Affairs June 2013 Forecasts of Macroeconomic Developments, State Revenues from Taxes and Revenue from Other Sources, 2013-2014

More information

The Real Business Cycle model

The Real Business Cycle model The Real Business Cycle model Spring 2013 1 Historical introduction Modern business cycle theory really got started with Great Depression Keynes: The General Theory of Employment, Interest and Money Keynesian

More information

Chapter 11. Keynesianism: The Macroeconomics of Wage and Price Rigidity. 2008 Pearson Addison-Wesley. All rights reserved

Chapter 11. Keynesianism: The Macroeconomics of Wage and Price Rigidity. 2008 Pearson Addison-Wesley. All rights reserved Chapter 11 Keynesianism: The Macroeconomics of Wage and Price Rigidity Chapter Outline Real-Wage Rigidity Price Stickiness Monetary and Fiscal Policy in the Keynesian Model The Keynesian Theory of Business

More information

Comments on \Do We Really Know that Oil Caused the Great Stag ation? A Monetary Alternative", by Robert Barsky and Lutz Kilian

Comments on \Do We Really Know that Oil Caused the Great Stag ation? A Monetary Alternative, by Robert Barsky and Lutz Kilian Comments on \Do We Really Know that Oil Caused the Great Stag ation? A Monetary Alternative", by Robert Barsky and Lutz Kilian Olivier Blanchard July 2001 Revisionist history is always fun. But it is not

More information

Executive summary of the new Italian legislation on start-ups

Executive summary of the new Italian legislation on start-ups Executive summary of the new Italian legislation on start-ups 29 th January 2014 Italian Ministry of Economic Development Minister s Technical Secretariat The steps Italy has taken in order to become the

More information

THE IMPACT OF INTERNATIONAL MIGRATION ON DESTINATION COUNTRIES

THE IMPACT OF INTERNATIONAL MIGRATION ON DESTINATION COUNTRIES THE IMPACT OF INTERNATIONAL MIGRATION ON DESTINATION COUNTRIES Office of the President of the General Assembly Panel discussion on International Migration and Development United Nations, New York, 25 June

More information

9M 2012 Results. 12 November 2012. Investor Relations

9M 2012 Results. 12 November 2012. Investor Relations 9M 2012 Results 12 November 2012 Investor Relations Disclaimer This presentation contains statements that constitute forward-looking statements based on Il Sole 24 ORE S.p.A. s current expectations and

More information

Competitiveness of Travel Agencies in the European Tourism Market. Iris Mihajlović. University of Dubrovnik, Dubrovnik, Croatia

Competitiveness of Travel Agencies in the European Tourism Market. Iris Mihajlović. University of Dubrovnik, Dubrovnik, Croatia Chinese Business Review, ISSN 1537-1506 April 2013, Vol. 12, No. 4, 278-286 D DAVID PUBLISHING Competitiveness of Travel Agencies in the European Tourism Market Iris Mihajlović University of Dubrovnik,

More information

FISCAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2015

FISCAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2015 FISCAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2015 The OECD argues in favour of complementary private pension savings to boost overall saving for retirement. Financial incentives may be

More information

Workplace Productivity Employees Survey Executive Summary Introduction and background

Workplace Productivity Employees Survey Executive Summary Introduction and background Workplace Productivity Employees Survey Executive Summary Introduction and background In December 2003, Cabinet Business Committee agreed to the establishment of the Workplace Productivity Working Group

More information

N. 2 1 / 1 4 TAX & BUSINESS. Summary

N. 2 1 / 1 4 TAX & BUSINESS. Summary i N. 2 1 / 1 4 T H E P O R T U G U E S E P E R S O N A L I N C O M E T A X ( I R S ) R E F O R M : F A M I L Y, M O B I L I T Y A N D T A X S I M P L I F I C A T I O N TAX & BUSINESS This Tax Information

More information

OECD PROJECT ON FINANCIAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2016

OECD PROJECT ON FINANCIAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2016 OECD PROJECT ON FINANCIAL INCENTIVES AND RETIREMENT SAVINGS Project Outline 2014-2016 The OECD argues in favour of complementary private pension savings to boost overall saving for retirement. Financial

More information

2. New Trend 1: From Fairness to Efficiency

2. New Trend 1: From Fairness to Efficiency Hitotsubashi Symposium Fundamental Tax Reforms in Japan In Search of Equity-Efficiency Balance Shigeki Morinobu Professor, Chuo Law School President of Japan Tax Institute 1. Introduction Upon entering

More information

MEXICAN TAX BILL FOR 2016

MEXICAN TAX BILL FOR 2016 MEXICAN TAX BILL FOR 2016 On September 8, 2015, the President sent to Congress the Tax Bill where some proposals are made to change current Mexican tax legislation. The main proposals are the following:

More information

Considerations on the development of frequency and severity of MTPL losses in Italy

Considerations on the development of frequency and severity of MTPL losses in Italy Considerations on the development of frequency and severity of MTPL losses in Italy Armin Dahr MRI Reinsurance Forum, 2 nd April 2014 Agenda Development of MTPL claims frequency in Italy Inflation of severe

More information

Economic Growth and Government Size. Mark Pingle Professor of Economics University of Nevada, Reno. and

Economic Growth and Government Size. Mark Pingle Professor of Economics University of Nevada, Reno. and Economic Growth and Government Size By Mark Pingle Professor of Economics University of Nevada, Reno and Mina Mahmoudi PhD Candidate University of Nevada, Reno Short Summary There is good reason to expect

More information

Retirement routes and economic incentives to retire: a cross-country estimation approach Martin Rasmussen

Retirement routes and economic incentives to retire: a cross-country estimation approach Martin Rasmussen Retirement routes and economic incentives to retire: a cross-country estimation approach Martin Rasmussen Welfare systems and policies Working Paper 1:2005 Working Paper Socialforskningsinstituttet The

More information

Recitation 9: Empirical Evidence on Labor Market Dynamics. 1. Unemployment and Vacancies over the Business Cycle

Recitation 9: Empirical Evidence on Labor Market Dynamics. 1. Unemployment and Vacancies over the Business Cycle 14.461: Advanced Macroeconomics I Suman S. Basu, MIT Recitation 9: Empirical Evidence on Labor Market Dynamics Part II of 14.461 covers topics in the macroeconomic analysis of labor markets. The purpose

More information

27 30 October 2011 KAV - Belgium. Wanted: Gender proof systems of Social Security and Protection!

27 30 October 2011 KAV - Belgium. Wanted: Gender proof systems of Social Security and Protection! EBCA seminar London Marietje Van Wolputte 27 30 October 2011 KAV - Belgium Wanted: Gender proof systems of Social Security and Protection! 1 Introduction: The face of poverty is female. This is the case

More information

WELCOME AND TAKING CHARGE

WELCOME AND TAKING CHARGE WELCOME AND TAKING CHARGE In this preliminary phase, you will be fully informed by the information point that will be indicated to you by your Region the contents and services provided by the Programme

More information