IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/18167.html

Accounting for the Duality of the Italian Economy

Author

Listed:
  • Fernández-Villaverde, Jesús
  • Laudati, Dario
  • Ohanian, Lee
  • Quadrini, Vincenzo

Abstract

After 162 years of political unification, Italy still displays large regional economic differences. In 2019, the per capita GDP of Lombardia was 39,700 euros, but Calabria's per capita GDP was only 17,300 euros. We build a two-region, two-sector model of the Italian economy to measure the wedges that could account for the differences in aggregate variables between the North and the South. We find that the largest driver of the regional disparity in per capita output is the difference in total factor productivity, followed by fiscal redistribution. These two factors, together, account for more than 70 percent of the output disparity between the North and the South.

Suggested Citation

  • Fernández-Villaverde, Jesús & Laudati, Dario & Ohanian, Lee & Quadrini, Vincenzo, 2023. "Accounting for the Duality of the Italian Economy," CEPR Discussion Papers 18167, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18167
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP18167
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Luigi Infante & David Loschiavo & Andrea Neri & Matteo Spuri & Francesco Vercelli, 2025. "The Heterogeneous Impact of Inflation Across the Joint Distribution of Household Income and Wealth," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(2), pages 703-724, July.
    3. Fernández-Villaverde, Jesús & Ventura, Gustavo & Yao, Wen, 2025. "The wealth of working nations," European Economic Review, Elsevier, vol. 173(C).
    4. Hernández de Rojas, Félix & Rodríguez Pita, Pilar & Pérez Martínez, Jorge Emiliano, 2025. "The phenomena of spatial spillovers of digitalization and competitiveness inside European regions," Telecommunications Policy, Elsevier, vol. 49(7).
    5. Luca Casolaro & Marco Gallo & Iconio Garrì, 2024. "Why is Credit Riskier in the South?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 10(3), pages 1087-1117, November.
    6. Santoni Edoardo & Patriarca Fabrizio & Scarlato Margherita, 2025. "The Effects of Hiring Credits on Firms’ Dynamics: A Synthetic Difference-in-Differences Evaluation," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 25(4), pages 1121-1181.

    More about this item

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

    Statistics

    Access and download statistics

    Corrections

    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:cpr:ceprdp:18167. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.