Regional multipliers across the Italian regions

Sergio Destefanis, Mario Di Serio () and Matteo Fragetta ()
Additional contact information
Mario Di Serio: Università di Salerno

No 2020-04, Discussion Paper series in Regional Science & Economic Geography from Gran Sasso Science Institute, Social Sciences

Abstract: This paper estimates the multipliers of different types of government spending in the 20 Italian administrative regions throughout 1994–2016. We estimate region-specific multipliers through a Bayesian random effect panel vector autoregressive model. We find that the EU structural funds, compared to the other types of government spending, provide the largest and most pervasively significant GDP multipliers, whereas the effectiveness of nationally funded government investment and government consumption shocks is limited to certain regions. We also find substitutability between EU structural funds and other expenditure variables, which runs counter to the principle of additionality of the EU cohesion policy. An exploratory analysis of the distribution of multipliers across regions and expenditure types suggests that multiplier values are positively associated with the amount of unused resources as well as with the region size.

Keywords: EU structural funds; government consumption; government investment; Bayesian Vector Autoregressive Model (search for similar items in EconPapers)
JEL-codes: C33 E62 H50 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2020-07, Revised 2020-07
New Economics Papers: this item is included in nep-eur, nep-geo and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.gssi.it/images/DPRSEG_2020-04.pdf First version, 2020 (application/pdf)

Related works:
Journal Article: Regional multipliers across the Italian regions (2022)
Working Paper: Regional multipliers across the Italian regions (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ahy:wpaper:wp4

Access Statistics for this paper

More papers in Discussion Paper series in Regional Science & Economic Geography from Gran Sasso Science Institute, Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Andrea Ascani ().