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Regional Inflation Persistence: Evidence from Italy

  • Andrea Vaona

    ()

    (Facoltà di Economia, Università di Lugano, Svizzera)

  • Guido Ascari

    ()

    (Dipartimento di Economia e Metodi Quantitativi, Facoltà di Economia, Università di Pavia, Italia)

Regional patterns of inflation persistence have received attention only at a very coarse level of territorial disaggregation, that of EMU member states. However economic disparities within EMU member states are an equally important policy issue. This paper considers a country with a large regional divide, i.e., Italy, at a fine level of territorial disaggregation (NUTS3). Our results show that economically backward regions display greater inflation persistence. Moreover, we show that higher persistence is linked to a lower degree of competitiveness in the retail sector.

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Paper provided by USI Università della Svizzera italiana in its series Quaderni della facoltà di Scienze economiche dell'Università di Lugano with number 0807.

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Length: 21
Date of creation: 2008
Date of revision:
Handle: RePEc:lug:wpaper:0807
Contact details of provider: Web page: https://www.bul.sbu.usi.ch

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