“Antitrust Policies and Profitability in Non-Tradable Sectors”, with Tim Besley and Nicola Limodio, Accepted at the American Economic Review: Insights, September 2020
Abstract: Firms in tradable sectors are more likely to be subject to external competition to limit market power while non-tradable firms are more dependent on domestic policies and institutions. This paper combines an antitrust index available for multiple countries with firm-level data from Orbis covering more than 10 million firms from 90 countries, covering 20 sectors over 10 years and finds that profit margins of firms operating in non-tradable sectors are significantly lower in countries with stronger antitrust policies compared to firms operating in tradable sectors. The results are robust to a wide variety of empirical specifications.
“Historical Roots of Political Extremism: The Effects of Nazi Occupation of Italy”, with Tommaso Nannicini and Guido Tabellini, July 2020
Abstract: We study the impact of the Italian civil war and Nazi occupation of Italy in 1943--45 on postwar political outcomes. The Communist Party, which was more active in the resistance movement, gained votes in areas where the Nazi occupation was both longer and harsher, mainly at the expense of centrist parties. This effect persists until the late 1980s. These results suggest that civil war and widespread political violence reshape political identities in favor of the political groups that emerge as winners. This benefits extremist groups and hurts moderates, since the former are more involved in violent conflict.
Research in progress:
“Emigration and Long-Run Economic Development: The Effects of the Italian Mass Migration”, with Marco Manacorda, Gianluca Russo and Marco Tabellini, September 2020
Entrepreneurial skills: Learning by Renting, March 2019