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Local Banking and Prosperity: Some Empirical Evidence for Italy

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  • Guglielmo Maria Caporale
  • Matteo Alessi

Abstract

The aim of this paper is to investigate the relationship between local banking and prosperity at the municipal level in Italy from 2011 to 2021. The latter variable is measured using an index proposed by Sen (1976). The analysis is based on panel regressions including a measure of local banking and other control variables at the municipality level. The static results indicate a positive and significant association between the presence of local banking and prosperity. They are confirmed by the dynamic panel estimates, and are robust to using different proxies for local bank presence. Their implication is that cooperative banking plays a crucial role in promoting prosperity at the local level.

Suggested Citation

  • Guglielmo Maria Caporale & Matteo Alessi, 2025. "Local Banking and Prosperity: Some Empirical Evidence for Italy," CESifo Working Paper Series 11926, CESifo.
    • Handle: RePEc:ces:ceswps:_11926
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    More about this item

    Keywords

    well-neing; cooperative banking; static and dynamic panels; GMM;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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