A model to assess the financial vulnerability of Italian firms

Antonio De Socio () and Valentina Michelangeli

Journal of Policy Modeling, 2017, vol. 39, issue 1, 147-168

Abstract: We develop a model to assess the financial vulnerability of the Italian corporate sector over a two-year horizon under baseline and stressed scenarios. To take into account the heterogeneity of firms and their demography we use micro data, which are then integrated with macroeconomic forecasts. We find that an accommodative monetary policy combined with economic recovery and pro-growth reforms widely reduce the vulnerability of the corporate sector. However, micro firms and those operating in the construction sector remain the most vulnerable, suggesting that targeted policies would be beneficial.

Keywords: Firms’ vulnerability; Debt; Stress test (search for similar items in EconPapers)
JEL-codes: D22 G32 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:39:y:2017:i:1:p:147-168

DOI: 10.1016/j.jpolmod.2016.03.002

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