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Local Development, Urban Economies and Aggregate Growth

Author

Listed:
  • Antonio Accetturo

    (Bank of Italy, Trento Branch)

  • Andrea Lamorgese

    (Bank of Italy)

  • Sauro Mocetti

    (Bank of Italy)

  • Paolo Sestito

    (Bank of Italy)

Abstract

The aim of this paper is to present an overview of the results of a recent research project by the Bank of Italy. The paper analyses the interplay between historical origins, congestion costs, and agglomeration benefits in shaping the Italian urban system. It shows that urban agglomeration externalities (on wages, productivity, or innovation) tend to be smaller in Italy than in other developed countries; it also shows that the costs of congestion are relatively high and that high housing cost—explained by both physical constraints and public administration inefficiencies—discourage mobility. These features have a relevant impact on the development of an advanced urban system with possible negative consequences on the country’s ability to grow.

Suggested Citation

  • Antonio Accetturo & Andrea Lamorgese & Sauro Mocetti & Paolo Sestito, 2019. "Local Development, Urban Economies and Aggregate Growth," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 5(2), pages 191-204, July.
  • Handle: RePEc:spr:italej:v:5:y:2019:i:2:d:10.1007_s40797-019-00095-y
    DOI: 10.1007/s40797-019-00095-y
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    2. Valter Giacinto & Giacinto Micucci & Alessandro Tosoni, 2020. "The agglomeration of knowledge-intensive business services firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 557-590, December.
    3. Loschiavo, David, 2021. "Big-city life (dis)satisfaction? The effect of urban living on subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 740-764.
    4. Amanda Carmignani & Guido de Blasio & Cristina Demma & Alessio D'Ignazio, 2021. "Urbanization and firm access to credit," Journal of Regional Science, Wiley Blackwell, vol. 61(3), pages 597-622, June.
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    More about this item

    Keywords

    Economic growth; Agglomeration; Congestion costs; Urban premium;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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