In the last two decades of the XIX century the Italian model of economic growth shifted from agricultural to industrial. Historians maintain that this process was affected by the action of some interest groups that pursued both state protection from competition and specific public expenditure programs. Starting from the economic literature of interest groups, this paper attempts to empirically investigate the role of the interest groups in public expenditure decisions in Italy from 1876 to 1913. The analysis suggests that government spending was sensitive to the preferences of heavy industry rather then those of textile and cereal cultivators.
State Protection, Interest Groups and Government Spending in Italy, 1876-1913
Ricciuti, Roberto
2011-01-01
Abstract
In the last two decades of the XIX century the Italian model of economic growth shifted from agricultural to industrial. Historians maintain that this process was affected by the action of some interest groups that pursued both state protection from competition and specific public expenditure programs. Starting from the economic literature of interest groups, this paper attempts to empirically investigate the role of the interest groups in public expenditure decisions in Italy from 1876 to 1913. The analysis suggests that government spending was sensitive to the preferences of heavy industry rather then those of textile and cereal cultivators.
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