Tuesday, July 3, 2012
Posted by D. Daniel Sokol
Magda Bianco (Banca d'Italia), Silvia Giacomelli (Banca d'Italia) and Giacomo Rodano (Banca d'Italia) have posted Competition and regulation in Italy.
ABSTRACT: Insufficient competition remains a major obstacle to growth in Italy. The main culprits include the institutional environment and the regulations governing some economic sectors subject to market failures. As to the former, relative neglect of economic efficiency has produced an unstable and inconsistent regulatory framework, excessive administrative burdens, and an inefficient system of contract enforcement. Past attempts to reform this area have yielded poor results. As to the latter, regulation was satisfactory only in some sectors. The excessive number of activities in which some operators enjoyed exclusive rights to provide services and restrictive regulation hindered competition in professional services. Growing awareness of the importance of competition policies to foster growth has given new impetus to the implementation of a wide programme of liberalization and institutional reform.