We develop an endogenous growth model to simulate the long-term impact of Italy's National Recovery and Resilience Plan … (NRRP) on the persistent North-South productivity gap. Our model underscores public investment as a catalyst for sustained … management - the NRRP only slightly reduces the NorthSouth productivity gap from 75% to 76.4%. Finally, our research highlights …

's (1982) model of learning in a setting where each firm gradually learns about its own productivity, and each occasionally …