Research
Working papers:
Decoding Local Public Finance: The Interplay of the Legislature and the Executive - Job Market Paper
Presentations: SIEP 2023, PhD-EVS, Nazarbayev University, 2nd Workshop on The Political Economy of Municipal Fiscal Policy, EEA 2024, Helsinki GSE, Tampere University, FIT Internal seminar
In the world of government and politics, the interaction between the executive and the legislature raises a fundamental question: Does an increased political class boost financial resources or burden the state's finances? Using unique administrative data from Italian municipalities and an instrumental difference-in-difference strategy, this paper explores how roles that politicians play within the government matter. The study finds that the presence of more executive politicians leads to increased expenditure, primarily driven by higher investments financed through capital transfers, while a surplus of councilors exerts a constraining effect on public spending. These patterns are explained through the lens of specialization within a larger executive body and political fragmentation within a larger council. Voters respond positively to the additional spending by the executive, supporting upward career movements for the mayor and the re-appointment of executive board members. However, councilors' careers do not benefit from their spending behavior. This research contributes to the understanding of the complex relationship between political class size and state finances, which the literature found ambiguous.
Presentations: AYEW 2024
Do agglomeration or congestion effects dominate when municipalities merge government functions? I exploit an Italian policy reform, which forced municipalities below 5,000 residents to join inter-municipal communities (IMC), to estimate the effects on local real estate prices and public services. Affected areas see an increase in house prices reflecting an improvement in public goods provision. Cooperating municipalities provide better services without increasing investments, suggesting that small municipalities were operating below an efficient scale before the reform.
Evaluating the Impact of Unemployment Benefit Reforms on Career Stability in Italy: Evidence from a Regression Discontinuity Analysis (new version!)
The impact of changing Potential Benefit Duration (PBD) on workers with unstable and fragmented careers remains underexplored. This study leverages a large administrative dataset from Italy and employs a Regression Discontinuity design to analyze a reform that ties unemployment benefit duration to weeks worked prior to unemployment. This reform creates varied effects based on different employment histories. The findings reveal that the new contributory system reduces unemployment durations by 27 days, a 63% decrease, and increases the probability of securing a permanent contract by 9%. Additionally, workers are more prone to change employers and job sectors. There is no significant impact on tenure and wages. The effects are particularly pronounced among young workers with temporary contracts located in small firms in the North of the country.
Let the Water Flow: The Impact of Electrification on Agriculture (with Geetika Nagpal)
Honorable Mention, S4 Graduate Student Paper Prize 2022, Brown University
Presentations: CSAE 2021
Over one billion people worldwide live in rural areas without access to electricity. In developing countries, while governments use electrification programs to stimulate non-agricultural employment, they may also have benefits for the agricultural sector. We estimate the impacts of India's large-scale rural electrification program on agricultural output using a difference-in-difference design and a combination of administrative and satellite data. We find that electrification leads to a 1.7% increase in agricultural output which is largely driven by the rain-fed summer cropping season. Agriculture in electrified villages becomes less sensitive to rainfall shocks, which is of growing importance given worsening environmental conditions. We provide suggestive evidence that this decline in sensitivity is due to an increase in the uptake of electric shallow tube wells, particularly at the intensive margin.
*forthcoming
Work in progress:
Property tax and business productivity (with Andrea Tulli)