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Interest Groups and Government Spending in Italy, 1876-1913

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Author Info
Nadia Fiorino ()
Roberto Ricciuti ()

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Abstract

In the last two decades of the XIX century Italy became an industrial country. Historians maintain that this process was affected by the action of some interest groups that pursued both state protection from competition and specific public expenditure programs. Starting from the economic literature of interest groups, this paper attempts to empirically investigate the role of the interest groups in public expenditure decisions in Italy from 1876 to 1913. We argue that a proper indicator of the role of interest groups is their output. The analysis suggests that government spending was sensitive to the preferences of heavy industry rather then those of textile and cereal cultivators. We therefore highlight the role of the political process in setting economic policy at the early stages of Italian development.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2722.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2722

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Related research
Keywords: special interest groups; public expenditure; Italian economic history;

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Find related papers by JEL classification:
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
N43 - Economic History - - Government, War, Law, and Regulation - - - Europe: Pre-1913

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  1. Congleton, Roger D & Shughart, William F, II, 1990. "The Growth of Social Security: Electoral Push or Political Pull?," Economic Inquiry, Oxford University Press, vol. 28(1), pages 109-32, January.
  2. Guttman, Joel M, 1978. "Interest Groups and the Demand for Agricultural Research," Journal of Political Economy, University of Chicago Press, vol. 86(3), pages 467-84, June. [Downloadable!] (restricted)
  3. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October. [Downloadable!] (restricted)
  4. Federico, Giovanni & Tena, Antonio, 1998. "Was Italy a protectionist country?," European Review of Economic History, Cambridge University Press, vol. 2(01), pages 73-97, April. [Downloadable!]
  5. Aidt, T.S. & Dutta, Jayasri & Loukoianova, Elena, 2006. "Democracy comes to Europe: Franchise extension and fiscal outcomes 1830-1938," European Economic Review, Elsevier, vol. 50(2), pages 249-283, February. [Downloadable!] (restricted)
  6. Gardner, Bruce L, 1987. "Causes of U.S. Farm Commodity Programs," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 290-310, April. [Downloadable!] (restricted)
  7. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November. [Downloadable!] (restricted)
  8. van Winden, Frans, 1999. " On the Economic Theory of Interest Groups: Towards a Group Frame of Reference in Political Economics," Public Choice, Springer, vol. 100(1-2), pages 1-29, July. [Downloadable!] (restricted)
  9. Federico, G. & O'Rourke, K.H., 1999. "Much Ado About Nothing? Italian Trade Policy in the late 19th Century," Papers 99/18, College Dublin, Department of Political Economy-.
  10. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August. [Downloadable!] (restricted)
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