Happy 150th Birthday Italy? Institutions and Economic Performance Since 1861
AbstractIn the last twenty years the Italian economy showed claer signs of structural crisis. Using a variety of secondary literature, this paper claims that the recent decline must be seen as part of a long-term trend of sub-optimal performance driven by the inability of the country to remain congruent with the tecnological frontier. This problem, in turn, is the result of week and/or poorely-enforced rules that regulate economic activity. Specifically, legal institutions in areas such as firms’ governance (bankruptcy law; balance sheets regulation, use of inefficient forms of governance), banking supervision, education, and tax compliance, favoured “extractive” behaviour from firms’ owners, discouraged businesses to reach a size compatible with innovation in advanced sectors, and frustrated investment in education, research, and innovation. The paper also analyses the origin of this institutional failure and uses the example of football to show the persistency of inefficient rules. The picture that emerges is that institutional failure finds its origin in the feature of the process of State formation and, later, in the post WWII political equilibrium. Distorted institutions serve the interests of a constantly-changing minority, big enough to protect the status quo
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 662.
Date of creation: Nov 2012
Date of revision:
Find related papers by JEL classification:
- N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
- K35 - Law and Economics - - Other Substantive Areas of Law - - - Personal Bankruptcy Law
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
- P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2001.
"The Colonial Origins of Comparative Development: An Empirical Investigation,"
American Economic Review,
American Economic Association, vol. 91(5), pages 1369-1401, December.
- Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
- Pier Angelo Toninelli & Michelangelo Vasta, 2011. "Opening the black box of Entrepreneurship: the Italian case in a historical perspective," Department of Economics University of Siena 628, Department of Economics, University of Siena.
- Alexander Dyck & Luigi Zingales, 2004.
"Private Benefits of Control: An International Comparison,"
Journal of Finance,
American Finance Association, vol. 59(2), pages 537-600, 04.
- Alexander Dyck & Luigi Zingales, 2002. "Private Benefits of Control: An International Comparison," NBER Working Papers 8711, National Bureau of Economic Research, Inc.
- Dyck, Alexander & Zingales, Luigi, 2002. "Private Benefits of Control: An International Comparison," CEPR Discussion Papers 3177, C.E.P.R. Discussion Papers.
- Michele Di Maio & Federico Tamagni, 2007.
"The Evolution of the World Trade and the Italian ‘Anomaly’: A New Look,"
Development Working Papers
227, Centro Studi Luca d\'Agliano, University of Milano.
- Michele Di Maio & Federico Tamagni, 2008. "The Evolution of World Export Sophistication and the Italian Trade Anomaly," Rivista di Politica Economica, SIPI Spa, vol. 98(1), pages 135-174, January-F.
- Michele Di Maio & Federico Tamagni, 2006. "The evolution of world trade and the Italian â€˜anomaly': a new look," Working Papers 39-2006, Macerata University, Department of Finance and Economic Sciences, revised Oct 2008.
- David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
- Zingales, Luigi, 1994. "The Value of the Voting Right: A Study of the Milan Stock Exchange Experience," Review of Financial Studies, Society for Financial Studies, vol. 7(1), pages 125-48.
- Nelson, Richard R., 2007.
"What Makes an Economy Productive and Progressive? What Are the Needed Institutions?,"
13728, University of Minnesota, Department of Applied Economics.
- Richard R. Nelson, 2006. "What Makes an Economy Productive and Progressive? What Are the Needed Institutions?," LEM Papers Series 2006/24, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Marco Pagano & Paolo Volpin, 2001.
"The Political Economy of Finance,"
CSEF Working Papers
76, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Allen,Robert C., 2009.
"The British Industrial Revolution in Global Perspective,"
Cambridge University Press, number 9780521868273.
- Allen,Robert C., 2009. "The British Industrial Revolution in Global Perspective," Cambridge Books, Cambridge University Press, number 9780521687850.
- North, Douglass C., 1993.
"Economic Performance through Time,"
Nobel Prize in Economics documents
1993-2, Nobel Prize Committee.
- Oriana Bandiera, 2003. "Land Reform, the Market for Protection, and the Origins of the Sicilian Mafia: Theory and Evidence," Journal of Law, Economics and Organization, Oxford University Press, vol. 19(1), pages 218-244, April.
- Boeri, Tito & Severgnini, Battista, 2008. "The Italian Job: Match Rigging, Career Concerns and Media Concentration in Serie A," IZA Discussion Papers 3745, Institute for the Study of Labor (IZA).
- Fenoaltea,Stefano, 2011. "The Reinterpretation of Italian Economic History," Cambridge Books, Cambridge University Press, number 9780521192385.
- Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
- Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
- Broadberry, Stephen & Giordano, Claire & Zollino, Francesco, 2011. "A Sectoral Analysis of Italy's Development: 1861 -2010," CAGE Online Working Paper Series 61, Competitive Advantage in the Global Economy (CAGE).
- Emanuele Felice & Giovanni Vecchi, 2012. "Italy’s Modern Economic Growth, 1861-2011," Department of Economics University of Siena 663, Department of Economics, University of Siena.
- Zamagni, Vera, 1993. "The Economic History of Italy 1860-1990," OUP Catalogue, Oxford University Press, number 9780198287735.
- Alessandro Nuvolari & Michelangelo Vasta, 2012. "The Ghost in the Attic? The Italian National Innovation System in Historical Perspective, 1861-2011," Department of Economics University of Siena 665, Department of Economics, University of Siena.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fabrizio Becatti).
If references are entirely missing, you can add them using this form.