The paper investigates the relationship between the strong inertia of finns profits and the persistence
in innovative activities. The empirical analysis implements a non-parametric approach based on
modelling the dynamics of the evolving cross-section distributions to analyse firms' intradistribution
mobility and persistence. Results suggest that firms which are systematic innovators and earn profits
above the average have large probabilities to keep innovating and earning profits above the average,
as well as vice versa. Firm's relative position in innovation matters in the long run: the probability to
earn profits above the average, is higher if firms start as systematic innovators.
Tlis paper contains two very simple empirical analyses of heterogeneiy in lending. The first one
intends to test whether lenders' size, loans' size and risk and geographical factors affecting the «textbook
» link between policy rate and lending raies. The second provides empirical evidence suggesting
that lending to the larger borrowers is demand deterimined. For this purpose some dynamic panel
data estimates are performed on the basis of a partially aggregate data set, specifically acquired frcim
the Bank of Italy, which contains the data on interest rates, had debts and credit flows granted by different
size categories of banks under the form of different size categoies of loans in different geographic
areas of the country, for the period 1990 QI - 1998 QIV. The results show that the spread between
interest rate on the various classes of bank loans and the monetary policy rate is not influenced
by the loan size, while it seems to be more affected by proxies for risk. Furthermore, the behaviour of
the largest size class of bank loans shows a pattern consistent with a demand determined behaviour,
which suggests that (both according to the money view and the credit view) lending to the other
smaller size classes is residually detemined.
This paper presents five theoretical openness and growth links that can account for trade-induced
investment-led growth. The links are all demonstrated with a neoclassical growth model developed in
the context of trade models that allow for imperfect competition and scale economies. This sort of
old-growth theory in a new-trade model has not been thoroughly explored in the literature since the
profession skipped from old-growth-old-trade models straight to new-growth-new-trade models.
Nonetheless, such models are necessary to explain several key aspects of the econometric evidence
on trade and growth. For example, cross-country data suggests that openness influences growth only
via its effect on investment, and suggests that openness promotes investment in all countries whatever
the capital-intensive of their exports (contrary to predictions of the old-growth-old-trade models).