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Sectoral Composition of Consumption Expenditure: A Regional Analysis

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  • W. Addessi
  • M. Pulina

Abstract

This paper analyses the evolution of the sectoral composition of consumption expenditure in the Italian regions in the period between 1996 and 2013. The purpose is to verify whether such a composition at the regional level converged towards the national average and to identify which factors have mostly contributed to this convergence. Empirical data show that while regional performance converged towards the national average during the first half of the analyzed time span, the opposite occurred during the second half. Simulations suggest that - i) regional price dynamics do not have a large impact on the evolution of regional differences; ii) income effect explains rather well both the phases of the observed dynamics; and iii) consumer preferences have contributed to the increase in the differences among regions particularly since the beginning of the recent economic crisis.

Suggested Citation

  • W. Addessi & M. Pulina, 2017. "Sectoral Composition of Consumption Expenditure: A Regional Analysis," Working Paper CRENoS 201703, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:201703
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    Keywords

    Regional economics; Regional comparison; Consumption-expenditure composition;
    All these keywords.

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