Homepage Slider

KBS 2019 Spring Series of Research Seminars ‘Differences in Sectoral Price Dynamics among Italian Regions: Effects on Household Consumption-Expenditure Composition and Welfare’, Tuesday 7th May at 1pm in KBG-16

KBS 2019 Spring Series of Research Seminars Tuesday 7th May at 1pm in KBG-16 with a presentation by William Addessi, ‘Differences in Sectoral Price Dynamics among Italian Regions: Effects on Household Consumption-Expenditure Composition and Welfare’
 
All Welcome.
 
This paper analyses the evolution of the consumption expenditure in the Italian regions, investigating the impact of sectoral price dynamics on the aggregate sectoral composition as well as on the representative household’s welfare. In line with the structural-change macroeconomic literature, this paper underpins on a parsimonious structural model characterized by non-homothetic preferences and balance growth path. The results confirm that differences in price dynamics do not significantly impact on the evolution of sectoral expenditure shares, while income dynamics play an important role. Yet, the welfare analysis shows that a harmonisation of regional price dynamics may lead to significant welfare improvements. These findings support the relevance of supply-side policies aimed at increasing competitiveness and consequently at bounding inflation in the Italian regions.
 
William Addessi Kemmy Business School, Ivan Etzo University of Cagliari & CRENoS, Manuela Pulina University of Sassari & CRENoS