Banca d'Italia study reveals firm vehicle investment and capital reallocation
A new study by the Banca d'Italia provides fresh evidence on how Italian firms invest in motor vehicles and reallocate capital. Published on January 23, 2026, the research examines purchases, leasing, and rental arrangements.
Hidden capital and productivity
The study highlights that Italian firms frequently utilize leasing and rental contracts for motor vehicles, which do not involve direct ownership.
This practice leads to an underestimation of the capital stock recorded on company balance sheets.
Consequently, it can result in a possible distortion in the measurement of total factor productivity within the economy.
The research provides new insights into how firms select and renew their vehicle fleets, mapping the reallocation of these assets across various firms and sectors by exploiting detailed transaction data.
Firm characteristics drive investment choices
The choices made by firms regarding vehicle investment, specifically between purchasing new or used vehicles, and opting for purchasing versus leasing or renting, are closely associated with various firm characteristics.
These include factors such as a firm's liquidity, its age, and the inherent riskiness of its operational activities.
Furthermore, the study observes that trades of used vehicles primarily occur between firms operating within the same economic sector.
These transactions also tend to involve firms that exhibit similar levels of productivity.