6533b851fe1ef96bd12a8faa
RESEARCH PRODUCT
Estimating Verdoorn law for Italian firms and regions
Enza MalteseGiorgio FazioGiorgio FazioDavide Piacentinosubject
Micro levelEconomics and EconometricsReturns to scaleEconomies of agglomerationjel:C31Geography Planning and DevelopmentMultilevel modelReturns to scale Verdoorn Law Multilevel models Italian firmsDegree (music)Urban StudiesManufacturing sectorRegional economicsLawVerdoorn law Returns to scale Multilevel models Italian firmsEconometricsEconomicsjel:R12Dimension (data warehouse)jel:O47jel:R11Demographydescription
In empirical regional economics, returns to scale are typically estimated at the regional level in search for evidence on alternative theories of growth and agglomeration. However, returns to scale may also have a firm-level dimension. In this paper, we exploit micro level data and estimate the dynamic Verdoorn law in a multilevel-setting, where returns to scale are obtained simultaneously for the micro and the regional level. Using Italian firm-level data and the NUTS-3 level of aggregation, we estimate the classic and augmented versions of Verdoorn law for the manufacturing sector, and the rest of the economy for comparison. Our results show that increasing returns to scale co-exist at both levels, with some degree of regional heterogeneity across the Italian peninsula.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2011-12-01 |