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Red tape reduction and firm entry: evidence from an Italian reform

Author

Listed:
  • Monica Amici

    (Bank of Italy)

  • Silvia Giacomelli

    (Bank of Italy)

  • Francesco Manaresi

    (Bank of Italy)

  • Marco Tonello

    (Bank of Italy)

Abstract

We estimate the effects of a simplification in the bureaucratic regulation for doing business on firm demographics in Italy, where a 2011 legislation reform required all municipalities to institute a one-stop shop for doing business. We use data for all Italian firms active in private non-financial industries and exploit the staggered implementation of the policy by municipalities in order to identify its causal effect. The results indicate that the one-stop shop increased entry rates and survival probability at one year. This effect is due essentially to sole proprietorships, which are plausibly those that benefit the most from reductions in red tape.

Suggested Citation

  • Monica Amici & Silvia Giacomelli & Francesco Manaresi & Marco Tonello, 2015. "Red tape reduction and firm entry: evidence from an Italian reform," Questioni di Economia e Finanza (Occasional Papers) 285, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_285_15
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    References listed on IDEAS

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    11. Klapper, Leora & Laeven, Luc & Rajan, Raghuram, 2006. "Entry regulation as a barrier to entrepreneurship," Journal of Financial Economics, Elsevier, vol. 82(3), pages 591-629, December.
    12. Marianne Bertrand & Francis Kramarz, 2002. "Does Entry Regulation Hinder Job Creation? Evidence from the French Retail Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1369-1413.
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    2. Schulz, Matthias & Urbig, Diemo & Procher, Vivien, 2016. "Hybrid entrepreneurship and public policy: The case of firm entry deregulation," Journal of Business Venturing, Elsevier, vol. 31(3), pages 272-286.

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    More about this item

    Keywords

    red tape costs; firm entry; one-stop shop;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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