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

Monica Amici (), Silvia Giacomelli, Francesco Manaresi () and Marco Tonello
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Monica Amici: Bank of Italy

No 285, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

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.

Keywords: red tape costs; firm entry; one-stop shop (search for similar items in EconPapers)
JEL-codes: L11 L51 M13 (search for similar items in EconPapers)
Date: 2015-07
New Economics Papers: this item is included in nep-bec, nep-ent, nep-eur, nep-law and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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