Effects of fiscal policy in the Northern and Southern regions of Italy. Issue 6 (1st November 2016)

• Record Type: Journal Article
• Authors: Piacentini, Paolo; Prezioso, Stefano; Testa, Giuseppina
• Is Part Of: International review of applied economics. Volume 30:Issue 6(2016)
• Page Start: 747
• Page End: 770
• Publication Date: 2016-11-01
• Subjects: Tax multiplier -- government spending multiplier -- fiscal policy; E23 -- E62 -- H22 -- H24; Economics -- Periodicals; Web sites; Économie politique -- Périodiques; 330
• DOI: 10.1080/02692171.2016.1208738
• Languages: English
• ISSNs: 0269-2171

Abstract

Abstract: This paper contributes to a growing body of work within 'fiscal policy studies, ' investigating the recent role of fiscal policy on the Italian economy. Using annual data collected on a regional basis, this study estimates and compares the (impact and cumulative) fiscal multipliers across the North and the South—the less developed area—of Italy. With recourse to a simultaneous equation model for the two macro-areas of Italy, it estimates the overall impact of the measures of budget consolidation policies during the period 2011–2013. Our analysis reveals that tax increases and, with a greater impact, spending cuts, hit the South harder compared to the North.