The drivers of interregional policy choices: Evidence from Italy

Padovano, Fabio

doi:10.1016/j.ejpoleco.2012.01.003

Cited by 24 publications

(8 citation statements)

References 41 publications

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“…In two recent studies, Padovano (, ) found strong evidence of the importance of differences in the institutional setting, to explain growth rates and income distribution in the Italian regions.…”

Section: Literature Survey and Methodological Issuesmentioning

confidence: 99%

“…In two recent studies, Padovano (2012Padovano ( , 2014 found strong evidence of the importance of differences in the institutional setting, to explain growth rates and income distribution in the Italian regions. Marra (2014) addressed an extremely narrow aspect of growth in the Italian regions, which is the negative co-ordination externalities emerging from the management of European Structural Fund programmes; these are increasingly delegated to the local authorities, since it is assumed that they have the best knowledge of the local socio-economic conditions.…”

Section: Literature Survey and Methodological Issuesmentioning

confidence: 99%

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Institutional quality and the growth rates of the Italian regions: The costs of regulatory complexity

Vita

2018

Papers in Regional Science

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In this paper we study the impact of regulatory complexity, a measure of institutional quality, on the GDP, on per capita income and on the growth rate of the Italian regions. For comparative reasons we also use the duration of civil disputes as a further indicator of institutional quality used in the regressions as an alternative to the indicator of regulatory complexity. From the theoretical point of view, we use the approach of negative co‐ordination externalities, among the four sources of regulatory production that are at work at the same time. Our approach may be applied in all the countries with a multi‐level government system. Using the random effects and quantile regressions models we are able to quantify the effects of an improvement in institutional quality on the GDP and the growth rate, making a comparison between the results obtained using regulatory complexity or the duration of civil disputes as covariates. We also check for spatial dependence among variables. Econometric analysis supports the theoretical assumption that regulatory complexity is an impediment to the growth of regional GDP and per capita income. The main finding of our analysis is that a reduction in regulatory complexity would be more effective than a reduction in the duration of civil disputes in increasing the income and growth rate. This result could be useful for the policy‐maker because by reducing regulatory complexity we may obtain a considerable by‐product in the shorter duration of civil disputes.

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Section: Literature Survey and Methodological Issuesmentioning

confidence: 99%

Section: Literature Survey and Methodological Issuesmentioning

confidence: 99%

Institutional quality and the growth rates of the Italian regions: The costs of regulatory complexity

Vita

2018

Papers in Regional Science

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“…NFFs goes beyond our purposes: while we firmly believe that the opportunistic and inefficiency motives behind governments' redistribution policies are distortions to fight (Padovano 2007;2012), we also deem that in general they are not a good enough reason to give up public intervention for social inclusion and economic convergence of lagging regions.…”

Section: Introductionmentioning

confidence: 99%

Net fiscal flows and interregional redistribution in Italy: A long-run perspective (1951–2010)

Giannola¹,

Petraglia

Scalera

2016

Structural Change and Economic Dynamics

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By providing a long run reconstruction of regional Net Fiscal Flows (NFFs) in Italy throughout the last six decades , this paper documents the substantial rise of fiscal transfers to Mezzogiorno (i.e. Southern Italy) from the rest of the country. Besides, three further arguments are presented. First, we find that the prominent upsurge of NFFs in 1980s and 1990s has exerted a scarce impact on the North-South gap, mainly because it has not been connected to a stronger commitment in supply-side regional and development policies, and the needed rise of capital expenditure in Mezzogiorno. Second, we ascribe most of the increase in NFFs to the generalized escalation in current primary expenditure related to the "decentralization without accountability" design of fiscal reforms implemented in the 1970s. Third, we evaluate the size of interregional redistribution in the light of regional income differences and the burden imposed to contributing regions. By making use of several indexes and analytical procedures intensively used in the literature, we reach the conclusion that interregional redistribution in Italy has been moderate, considering the severity of initial differences in economic and social conditions. JEL classification: H50, H70, H72, R10.

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“…A wide literature (Persson & Tabellini, 2000;Pisauro, 2001;Rodden, 2006;Rodden, Eskeland, & Litvack, 2003;Velasco, 2000;Weingast, Shepsle, & Johnsen, 1981) has proved that the blend of decentralized expenditure decisions and centralized financing might be highly detrimental for fiscal discipline. In particular, the well-known common-pool argument points out that in this case the budget constraint is softened and regional governments are induced to overspend (specifically on the Italian case, see Bordignon, 2000;Buiatti, Carmeci, & Mauro, 2014;Giarda, 2011;and Padovano, 2012). 17.…”

Section: Notesmentioning

confidence: 99%

Redistribution and risk sharing in Italy: learning from the past

2017

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This paper investigates the role of public policies in Italy by assessing both the redistribution and the risk-sharing functions of interregional net fiscal flows in the long run. Its comparative approach allows one to contrast results obtained for two periods characterized by diverse regional policy and dynamics of regional convergence. Although based on a specific example, the evidence supports more general conclusions: when assessing the regional redistributive and risk-sharing power of national fiscal policies, many different factors related to the existing policy regime should be accounted for, particularly the distribution of government spending between current expenditure and public investment

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The drivers of interregional policy choices: Evidence from Italy

Cited by 24 publications

References 41 publications

Institutional quality and the growth rates of the Italian regions: The costs of regulatory complexity

Institutional quality and the growth rates of the Italian regions: The costs of regulatory complexity

Net fiscal flows and interregional redistribution in Italy: A long-run perspective (1951–2010)

Redistribution and risk sharing in Italy: learning from the past

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