Project Description: This study aims at investigating the performance of energy companies at IPO and highlighting the differences in underpricing and stock return trends of European green energy companies compared to non-green ones. We select the IPOs occurred between 2000 and 2014 on the main European stock exchanges and evaluate first day performance for the full sample and for the two sub-groups separately (green vs traditional). Additionally, we evaluate long run performance to shed light on the eventual differences in return trends. As further refinement, we evaluate which are the determinants of short and long term performance for the two groups of companies. Empirical evidence shows that green companies have a lower underpricing, suggesting that the market is able to incorporate information on the company, despite their innovative activity which might generate more asymmetry of information, probably thanks to the support of specialized investors. Nevertheless this effect disappears after few days of trading and when controlling for underpricing determinants. In the long run, net performances are similar and classical risk factors explain return dynamics. To the best of our knowledge, this is the first paper to analyse the underpricing and stock performance of green energy companies.
We analyze the impact of financial development on economic growth. Differently from previous studies that focus mainly on balanced growth path outcomes, we also analyze the transitional dynamics of our model economy by using a finance-extended Uzawa-Lucas framework where financial intermediation affects both human and physical capital accumulation. We show that, under certain rather general conditions, economic growth may turn out to be non-monotonically related to financial development (as suggested by the most recent empirical evidence) and that too much finance may be detrimental to growth. We also show that the degree of financial development may affect the speed of convergence, suggesting thus that finance may play a crucial role in determining the length of the recovery process associated with exogenous shocks. Moreover, in a special case of the model, we observe that, under a realistic set of parameters, social welfare decreases with financial development, meaning that even when finance positively affects economic growth the short term costs associated with financial activities more than compensate their long run benefits.
By considering the average density of sectors in a country's product space, measured by the Lafay's net export ows-based specialization index, as an indicator of the degree of complexity of the same country's production structure (Hausmann and Klinger), this project aims at providing aggregate macroeconomic evidence on how, in the long-run, a diverse degree of production-complexity may affect in a differential way not only economic growth, but also the relation between economic growth, population growth and the monopolistic (intermediate) markup.
Keywords: Economic growth; Population growth; Variety-expansion; Specialization; Complexity; Product market competition.Jel codes: O3; O4; J1.
We analyze the effects of children's health on human capital accumulation and on long-run economic growth. In this project, we aim to show the complementarity between education and health in an R&D-based growth model. These results are consistent with the empirical evidence for modern economies in the twentieth century.
JEL classication: I15, I25, J10, O30, O41.
Keywords: Health, Education, Fertility, Economic Growth, Technological Progress, Long-run Economic Development