IDEAS home Printed from
   My bibliography  Save this article

Tax revenues of Italian Municipalities from 2007 to 2012: economic crisis, «federalism » and the Mezzogiorno


  • F. Pica
  • A. Pierini
  • S. Villani


This paper analyzes the taxation policies of Italian Municipalities during the period 2007-2012. It attempts, in particular, to examine to what extent the financial decisions of these governing bodies were affected by the reforming process, still in progress, of the funding system of local authorities and by the difficult macroeconomic environment which has progressively reduced, during the period considered, the competitiveness of Italian economy. The analysis carried out in this paper has shown that, in all three districts taken into consideration (North of Italy, Central Italy and Southern Italy), the tax burden (that is the ratio between tax revenues and GDP) has increased. However, while in the Central Italy and in the Mezzogiorno the relationship between municipal tax revenues per capita and the (logarithm of) GDP per capita is growing, in the richest areas of the country, namely in the North of Italy, the same relationship is decreasing. These developments are to be traced back primarily to two factors, which we have reported several times in the past: on the one hand, the pressure of citizens' needs, produced by the underfunding of the Mezzogiorno's municipalities in the services corresponding to the ELP (Essential Levels of Performance); on the other hand, the conceptual, technical and financial poverty of the equalization mechanisms in place, ineffective in ensuring an at least approximate equality between the tax burden borne by taxpayers and the return which they obtained in terms of services.

Suggested Citation

  • F. Pica & A. Pierini & S. Villani, 2013. "Tax revenues of Italian Municipalities from 2007 to 2012: economic crisis, «federalism » and the Mezzogiorno," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 4, pages 819-856.
  • Handle: RePEc:mul:jqyfkm:doi:10.1432/76798:y:2013:i:4:p:819-856

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers

    File URL:
    Download Restriction: no

    As the access to this document is restricted, you may want to search for a different version of it.


    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:mul:jqyfkm:doi:10.1432/76798:y:2013:i:4:p:819-856. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.