In this paper we reconstruct the macro regional government deficits of Italy and find that the aggregate deficit resulting from our estimates captures quite well the entire dynamics of the Italian national public deficit. This new data set shows that the ultimate cause of the accumulation of...

This study re-examines the issue of causality between investment shares and economic growth. A methodology is applied based on Arellano and Bond (1991), and Holtz-Eakin, Newey and Rosen (1988) to quinquennial panel data on growth and investment shares for the post war period and shows that,...