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Consumer price levels in Northern and Southern Italy

Author

Listed:
  • Luigi Cannari

    (Banca d'Italia)

  • Giovanni Iuzzolino

    (Banca d'Italia)

Abstract

This paper provides a detailed insight into the magnitude of price-level differentials among Italian regions, supplementing the data collected by Istat with information on house prices and rentals collected by Agenzia del Territorio and by the Bank of Italy and with estimates from other sources. Results show that prices are lower in southern Italy than in other areas. The most reliable estimate gives a differential of 16/17 per cent. This spread is due mainly (i.e. more than two-thirds) to different levels of house prices, which include imputed rentals. If only effective rentals are considered, the spread decreases to 10 per cent. Noteworthy differentials can be also found within macro-areas, although on a smaller scale, signalling the potential relevance of regional and local factors in determining the price level of some goods and services.

Suggested Citation

  • Luigi Cannari & Giovanni Iuzzolino, 2009. "Consumer price levels in Northern and Southern Italy," Questioni di Economia e Finanza (Occasional Papers) 49, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_49_09
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2009-0049/QEF_49.pdf
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    Cited by:

    1. Camboni Riccardo & Valbonesi Paola, 2021. "Incumbent and Entrant Bidding in Scoring Rule Auctions: A Study on Italian Canteen Services," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 1-43, January.

    More about this item

    Keywords

    Urban economics; Regional studies;

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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