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Is legislation grease or sand to economic growth? An econometric analysis using data from Italian regions before and after the 2008 crisis

Author

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  • Giuseppe Vita

    (University of Catania)

  • Livio Ferrante

    (University of Catania)

Abstract

In this paper the impact of legislation on the GDP growth rate is investigated, both before and after the great economic and financial crisis of 2007–2008. The analysis has been performed using data from the twenty Italian regions from 1995 to 2016. Using several econometric models, the most significant result shows that flows of legislation can push economic growth into a recovery phase of the business cycle, while they should be reduced during recession phases, as they constitute a constraint to economic growth.

Suggested Citation

  • Giuseppe Vita & Livio Ferrante, 2021. "Is legislation grease or sand to economic growth? An econometric analysis using data from Italian regions before and after the 2008 crisis," European Journal of Law and Economics, Springer, vol. 51(3), pages 541-561, June.
    • Handle: RePEc:kap:ejlwec:v:51:y:2021:i:3:d:10.1007_s10657-021-09687-5
    DOI: 10.1007/s10657-021-09687-5
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    More about this item

    Keywords

    Business cycle; Deregulation; Economic growth; Financial crisis 2007–2008; Italian regions; Legislative complexity; Polycentricity;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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