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Government effectiveness and inequality in Italian regions

Author

Listed:
  • Cristian Barra

    (University of Salerno)

  • Anna Papaccio

    (University of Salerno)

  • Nazzareno Ruggiero

    (University of Salerno)

Abstract

Using regional data for Italy over the 2004–2019 period, this paper investigates the relationship between government effectiveness and inequality. For our empirical purposes, ordinary least squares, instrumental variable (IV) and generalized methods of moments regressions have been employed. Our evidence indicates that improved government effectiveness has some role in reducing inequality in the most developed regions of the North, but has no effect in both the Centre and in the peripheral Southern regions.

Suggested Citation

  • Cristian Barra & Anna Papaccio & Nazzareno Ruggiero, 2023. "Government effectiveness and inequality in Italian regions," Economic Change and Restructuring, Springer, vol. 56(2), pages 781-801, April.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:2:d:10.1007_s10644-022-09450-z
    DOI: 10.1007/s10644-022-09450-z
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    Cited by:

    1. Cristian Barra & Pasquale Marcello Falcone, 2024. "Does institutional quality matter for bioeconomy performance? Insights from Italian regions," Economic Change and Restructuring, Springer, vol. 57(6), pages 1-31, December.
    2. Focacci, Chiara Natalie & Kovac, Mitja & Spruk, Rok, 2023. "Ethnolinguistic diversity, quality of local public institutions, and firm-level innovation," International Review of Law and Economics, Elsevier, vol. 75(C).

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    More about this item

    Keywords

    Government effectiveness; Inequality; Regional analysis; North–South divide; Empirical design;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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