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Abstract Using regional data for Italy over the 2004–2019 period, this paper investigates the relationship between government effectiveness and inequality. For our empirical purposes, ordinary least squares, instrumental variable (IV) and generalized methods of moments regressions have been employed. Our evidence indicates that improved government effectiveness has some role in reducing inequality in the most developed regions of the North, but has no effect in both the Centre and in the peripheral Southern regions.
Barra et al. (Wed,) studied this question.
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