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Excellence funds, excellent outcomes? Lessons from Italian university departments

Author

Listed:
  • Niccolo Cattadori

    (University of Zurich)

  • Edoardo Frattola

    (Bank of Italy)

  • Elena Lazzaro

    (Bank of Italy)

Abstract

This paper investigates the causal effects of a competitive excellence initiative financing Italy’s top twenty-five per cent university departments. We exploit a novel linkage of administrative data regarding faculty careers, publications, departmental activities, and student enrollment to estimate the effects of the policy in a dynamic difference-in-differences framework. In direct terms, the additional financial resources allowed funded departments to increase their faculty size but had a limited impact on course offerings. Indirectly, the excellence designation led to higher student enrollment, particularly among high-achieving ones, suggesting a positive quality signal. The funding boosted scientific output but not productivity, except in large STEM and Life Sciences departments, which benefited from agglomeration effects and improved research infrastructure.

Suggested Citation

  • Niccolo Cattadori & Edoardo Frattola & Elena Lazzaro, 2025. "Excellence funds, excellent outcomes? Lessons from Italian university departments," Temi di discussione (Economic working papers) 1505, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_1505_25
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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