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Digital Investment and the Evolution of Government Services

Author

Listed:
  • Caravaggio, Nicola

  • Resce, Giuliano

  • Santangelo, Agapito Emanuele

Abstract

This paper examines whether public investments in digital infrastructure improve citizen-facing government performance. We combine administrative data on the staggered rollout of a large-scale digitalization program with high-frequency social-media data for Italian municipalities, using online communication as a proxy for public service delivery. Exploiting variation in treatment timing, we estimate causal effects across access, usage, and outcomes. Digital investments increase municipalities' online presence and communication activity: treated municipalities are more likely to adopt social media, post more frequently, and generate higher aggregate engagement. However, improvements in effectiveness are limited in the short run. Engagement per post remains unchanged, and gains in communication quality, measured by readability, emerge only gradually. These findings suggest that while digital investments expand activity, translating them into effective communication requires time and complementary capabilities.

Suggested Citation

  • Caravaggio, Nicola & Resce, Giuliano & Santangelo, Agapito Emanuele, 2026. "Digital Investment and the Evolution of Government Services," Economics & Statistics Discussion Papers esdp26104, University of Molise, Department of Economics.
    • Handle: RePEc:mol:ecsdps:esdp26104
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    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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