IDEAS home Printed from https://ideas.repec.org/p/sap/wpaper/wp226_0.html
   My bibliography  Save this paper

Fiscal Policy, public investment, and structural change:A P-SVAR analysis on Italian regions

Author

Listed:
  • Francesco Zezza
  • Dario Guarascio

Abstract

This work analyses the regional impact of public investments focusing on three domains that are key for the Italian National Recovery and Resilience Plan (NRRP): green, digital and education/knowledge. Relying on a unique database ('Conti Pubblici Territoriali'), we perform a P-SVAR model showing that fiscal policy shocks have positive and long-lasting effects on GDP and private investments. A relevant heterogeneity is detected, though. In particular, shocks to digital spending only timidly crowd-in private investment while a stronger effect is found concerning the green sector. Second, public investments have a significant impact on regions' ‘structural upgrading’, i.e., export competitiveness and share of high-tech manufacturing. Third, confirming previous findings, shocks to public spending are found to have larger effects in centre-north regions, in terms of both GDP and private investments. Nevertheless, public spending turns out to have a stronger structural effect in the south than in the centre-north, highlighting the relevant role that the NRRP may play in reducing the Italian north-south divide

Suggested Citation

  • Francesco Zezza & Dario Guarascio, 2022. "Fiscal Policy, public investment, and structural change:A P-SVAR analysis on Italian regions," Working Papers in Public Economics 226, University of Rome La Sapienza, Department of Economics and Law.
    • Handle: RePEc:sap:wpaper:wp226_0
    as

    Download full text from publisher

    File URL: https://web.uniroma1.it/dip_ecodir/sites/default/files/wpapers/wp226_0.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Fiscal multipliers; Panel SVAR; Italian regions; North-South divide;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sap:wpaper:wp226_0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Luisa Giuriato (email available below). General contact details of provider: https://edirc.repec.org/data/dprosit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.