"Carlo Bastasin and Gianni Toniolo provide a much-needed, up-to-date economic history of Italy from unification in 1861 to the present. They reveal the factors behind Italy's twentieth-century growth as well as how economic decline in the last thirty years has resulted in rising levels of populism, mistrust and government instability"--

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 downward spiral alimented by corruption and clientelism. From this spiral has emerged an equilibrium as consistent as it is inefficient, that raises serious obstacles to economic and democratic development. The Political Economy of Italy's Decline explains the causes of Italy's downward trajectory, and explains how the country can 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 places emphasis on 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, or clientelism as means to appropriate private goods –- and 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 identifys the deeper causes of Italy's decline.

A brief, up-to-date account of Italy's transformation from an agrarian state to an industrial powerhouse.

Carlo Bastasin and Gianni Toniolo provide a much-needed, up-to-date economic history of Italy from unification in 1861 to the present day. They show how, thirty years after unification, Italy began a long phase of convergence with more advanced economies so that by the late twentieth century Italy's per capita income reached the levels of Germany, France and the UK. From the mid-1990s, however, the Italian economy declined first in relative and then absolute terms. The authors describe the intertwined financial and institutional crises that eroded trust in the political system and in the economy at the exact juncture when new technologies and markets transformed the global economy. Longstanding problems of uneven levels of education and obsolete bureaucratic and judicial practices deepened the division between economically vibrant regions and the rest, causing polarization, political instability and rising public debt. Italy's contemporary malaise makes the country a test-case for understanding the implications of protracted declines in productivity and the flattening of GDP growth for the stability of western democracies, resulting in populism, mistrust and political instability.

Study of postwar economic growth and economic structure of Italy - comprises 3 parts on (1) economic development (monetary policy, price stabilisation, incomes, labour productivity, etc.), (2) human resources and labour force (population growth, migration, the occupational structure, unemployment, underemployment, wage policy, social policy, wages, etc.), and (3) the dual character of the economy and industrialization. Statistical tables, bibliography and references.

This book is the first to provide English readers with a brief and comprehensive survey of economic life in Italy during the period of its greatest splendour: the Middle Ages and Renaissance. The wealth of Renaissance Italy was the product of centuries of growth, and the great Renaissance cities, Venice, Milan and Florence, were first and foremost centres of international trade, which taught the rest of Europe the rudiments of modern business techniques. In a masterly synthesis, based upon a lifetime of study and research, Professor Gino Luzzatto, the greatest of living Italian historians, describes the main changes in Italian economic conditions from the end of the Roman Empire, when Italy ceased to be the centre of a European state, to the end of the Middle Ages when Italy lost the leadership of European trade and banking. The narrative chapters, which deal with barbarian Italy, feudal Italy and Italy in the age of the communes, are followed by a valuable analysis of medieval agriculture, industry, commerce and finance, in her principal Italian states. The range of discussion is wide and offers an excellent introduction to the economic history not only of Italy but of the whole Mediterranean region. This classic text was first published in 1961.

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 downward spiral alimented by corruption and clientelism. From this spiral has emerged an equilibrium as consistent as it is inefficient, that raises serious obstacles to economic and democratic development. The Political Economy of Italy's Decline explains the causes of Italy's downward trajectory, and explains how the country can 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 places emphasis on 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, or clientelism as means to appropriate private goods –- and 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 identifys the deeper causes of Italy's decline.