Tax and credit aids to industrial development in Southern Italy: a comment on methodology

Authors

  • K.M. KAUFFMAN

DOI:

https://doi.org/10.13133/2037-3643/11938

Keywords:

Tax aids, special credit facilities, investment, Italy, bias, methodology, development

Abstract

In their interesting article, “Tax and Credit Aids to Industrial Development in Southern Italy”, G. Ackley and L. Dini analysed the influence of tax encouragements and special credit facilities on the relative attractiveness of investments in the North and South of Italy. To accomplish their objectives the authors made a number of simplifying assumptions. In the present note, the author explores the nature of the bias in the Ackley-Dini methodology. In particular cases in the real world there is no reason to believe the author’s assumptions will be applicable, and thus it is argued that the use of the method set out in their article can yield seriously misleading results.

 

JEL: H81, O14, O18

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Published

2014-03-27

How to Cite

KAUFFMAN, K. (2014). Tax and credit aids to industrial development in Southern Italy: a comment on methodology. PSL Quarterly Review, 13(55). https://doi.org/10.13133/2037-3643/11938

Issue

Vol. 13 No. 55 (1960)

Section

Editorial

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