No. 1018 - The costs of firm growth

Questioni di Economia e Finanza (Occasional papers)
by Enrico Miglino and Giacomo Roma
June 2026
Vai alla versione italiana Site Search

The paper estimates the costs Italian companies face if they wish to grow. The analysis makes use of the bunching of firms observed at size thresholds that trigger the application of more burdensome tax regimes or regulations. The assessment focuses on 2022 and considers three size variables: the number of employees, the revenues and total assets.

The most pronounced bunching is observed near the thresholds for the flat-rate scheme in terms of revenue and the introduction of the board of statutory auditors. The bunching is less significant when considering the number of employees. According to estimates, the most costly threshold is exiting the flat-rate scheme (with a cost equivalent to 10 per cent of value added), followed by simplified bookkeeping and quarterly VAT (4-5 per cent). The 15-employee threshold for worker protection has an almost negligible impact.

Full text

  1. 12 June 2026
    No. 1018 - The costs of firm growth
    PDF 6 MB

Sezione di approfondimento