Corporate saving in the United States: about a recent publication

The life of enterprises and the functioning of the entire economic system are strongly influenced by a typical phenomenon of the modern capitalistic system, namely the practice of corporate selffinancing, i.e. the presence of – voluntary or forced – undistributed profits. This topic, which is related to corporate income retention, is focused upon in the article by Giancarlo Mazzocchi. The Author analyzes the burden of corporate self-financing, which has deep effects on both stockholders and wage earners. Moreover, Mazzocchi investigates the relation between self-financing and the business cycle arguing that there is some sort of interdependence between decisions to save and to invest. Referring to his own work in progress, Mazzocchi asks himself whether in modern analysis, self-financing can be considered one of the likely causes of business cycles, and whether self-financing exerts any influence on the various cyclical phases, either stabilizing or intensifying them.