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Andrea Capussela book presentation - The Political Economy of Italy's Decline

Dates:
  • Thu 22 Nov 2018 16.00 - 18.00
  Add to Calendar 2018-11-22 16:00 2018-11-22 18:00 Europe/Paris Andrea Capussela book presentation - The Political Economy of Italy's Decline

POLITICAL ECONOMY WORKING GROUP Book description: Italy is a country of recent decline and long-standing idiosyncratic traits. A rich society served by an advanced manufacturing economy, where the rule of law is weak and political accountability low, it has long been in a downward spiral. From this spiral a politico-economic equilibrium has emerged, which is as consistent as it is inefficient, and raises serious obstacles to economic and democratic development. The Political Economy of Italy's Decline seeks to identify the causes of Italy's downward trajectory and the multiple equilibria that lie at its core, and to explain how the country could shift to a fairer and more efficient system. Analysing both political economic literature and the history of Italy from 1861 onwards, The Political Economy of Italy's Decline argues that the deeper roots of the decline lie in the political economy of growth. It follows the country's convergence to the productivity frontier and the evolution of its social order and institutions to illuminate the origins and evolution of the current constraints to growth, using institutional economics and Schumpeterian growth theory to support its findings. It analyses two alternative reactions to the insufficient provision of public goods: an opportunistic one – employing tax evasion, corruption, collusion, and clientelism as means to appropriate private goods – and a more public-spirited one, based on enforcing political accountability. From the perspective of ordinary citizens and firms such social dilemmas can typically be modelled as coordination games, which have multiple equilibria. Self-interested rationality can thus lead to a spiral, in which several mutually reinforcing vicious circles lead society onto an inefficient equilibrium characterized by low political accountability and weak rule of law. The Political Economy of Italy's Decline follows the gradual setting in of this spiral as it identifies the deeper causes of Italy's decline.

Seminar Room 3 DD/MM/YYYY
  Seminar Room 3

POLITICAL ECONOMY WORKING GROUP Book description: Italy is a country of recent decline and long-standing idiosyncratic traits. A rich society served by an advanced manufacturing economy, where the rule of law is weak and political accountability low, it has long been in a downward spiral. From this spiral a politico-economic equilibrium has emerged, which is as consistent as it is inefficient, and raises serious obstacles to economic and democratic development. The Political Economy of Italy's Decline seeks to identify the causes of Italy's downward trajectory and the multiple equilibria that lie at its core, and to explain how the country could shift to a fairer and more efficient system. Analysing both political economic literature and the history of Italy from 1861 onwards, The Political Economy of Italy's Decline argues that the deeper roots of the decline lie in the political economy of growth. It follows the country's convergence to the productivity frontier and the evolution of its social order and institutions to illuminate the origins and evolution of the current constraints to growth, using institutional economics and Schumpeterian growth theory to support its findings. It analyses two alternative reactions to the insufficient provision of public goods: an opportunistic one – employing tax evasion, corruption, collusion, and clientelism as means to appropriate private goods – and a more public-spirited one, based on enforcing political accountability. From the perspective of ordinary citizens and firms such social dilemmas can typically be modelled as coordination games, which have multiple equilibria. Self-interested rationality can thus lead to a spiral, in which several mutually reinforcing vicious circles lead society onto an inefficient equilibrium characterized by low political accountability and weak rule of law. The Political Economy of Italy's Decline follows the gradual setting in of this spiral as it identifies the deeper causes of Italy's decline.


Location:
Seminar Room 3

Affiliation:
Department of Political and Social Sciences

Type:
Working group

Organiser:
Prof. Dorothee Bohle (EUI - Department of Political and Social Sciences)
Julian Limberg (EUI - Department of Political and Social Sciences)
Jasper Paul Simons (EUI - Department of Political and Social Sciences)

Discussant:
Andrea Capussela
 
 

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