Recent literature has aimed at evaluating human capital externalities by estimating the effect of human capital on wages at urban level. We argue that this methodology might not identify properly human capital spillovers. We consider a general equilibrium model based on Roback (1982) where both...

Since the second half of the �90s, investment incentives channeled through the Law 488 have represented the main policy instrument for reducing territorial disparities in Italy. From 1996 to2003, the total amount of funds distributed to industrial firms has accounted for 16 billions of Euro...

This paper contributes to the literature on the effectiveness of R&D incentives by evaluating a unique investment subsidy program implemented in northern Italy. Firms were invited to submit proposals for new projects and only those that scored above a certain threshold received the subsidy. We...

In Italy, Patti Territoriali (Territorial Pacts) are one of the main government-sponsored programmes to foster growth in disadvantaged areas. A territorial pact is an agreement among the local authorities and representatives of civil society (mainly entrepreneurs and trade unions) of a number of...

This paper evaluates the impact of an R&D subsidy program implemented in a region of northern Italy on innovation by beneficiary firms. In order to verify whether the subsidies enabled firms to increase patenting activity, we exploit the mechanism used to allot the funds. Since only projects...

To explain the concentration of human capital in cities, urban theory conjectures that the metropolitan scale provides two sources of returns for the more educated; production benefits, both in terms of wages and non-monetary gains, and consumption benefits. By exploiting a unique survey on...