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Regional aspects of aggregate profitability dynamics in Italy

Author

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  • Silvia Domeneghetti

    (Banca Sella and University of Verona)

  • Andrea Vaona

    (Department of Economics (University of Verona))

Abstract

We study aggregate profitability dynamics in Italy from 1995 to 2009, by stressing its regional trends. We make use of various analytic approaches, such as decompositions, analysis of the ranking of the profit rate of the various regions and of their coefficient of variation, as well as of a shift-share analysis. We find that the distribution of regional profit rates changed little over time and that aggregate profitability dynamics was driven by within region developments rather than by changes of the weights of the regions within the national economy. Policy and theoretical implications are discussed in the light of the previous literature of reference.

Suggested Citation

  • Silvia Domeneghetti & Andrea Vaona, 2015. "Regional aspects of aggregate profitability dynamics in Italy," Working Papers 04/2015, University of Verona, Department of Economics.
    • Handle: RePEc:ver:wpaper:04/2015
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    Keywords

    Aggregate profitability dynamics; regions; Italy;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian

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