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Consumer price levels in Northern and Southern Italy


  • Luigi Cannari

    () (Banca d'Italia)

  • Giovanni Iuzzolino

    () (Banca d'Italia)


This paper provides a detailed insight into the magnitude of price-level differentials among Italian regions, supplementing the data collected by Istat with information on house prices and rentals collected by Agenzia del Territorio and by the Bank of Italy and with estimates from other sources. Results show that prices are lower in southern Italy than in other areas. The most reliable estimate gives a differential of 16/17 per cent. This spread is due mainly (i.e. more than two-thirds) to different levels of house prices, which include imputed rentals. If only effective rentals are considered, the spread decreases to 10 per cent. Noteworthy differentials can be also found within macro-areas, although on a smaller scale, signalling the potential relevance of regional and local factors in determining the price level of some goods and services.

Suggested Citation

  • Luigi Cannari & Giovanni Iuzzolino, 2009. "Consumer price levels in Northern and Southern Italy," Questioni di Economia e Finanza (Occasional Papers) 49, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_49_09

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    References listed on IDEAS

    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    8. repec:hrv:faseco:30747160 is not listed on IDEAS
    9. Floro Ernesto Caroleo & Gianluigi Coppola, 2005. "The impact of institutions on Regional unemployment disparities," ERSA conference papers ersa05p758, European Regional Science Association.
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    More about this item


    Urban economics; Regional studies;

    JEL classification:

    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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