Do Spatial Price Indices Reshuffle the Italian Income Distribution?

Maria Grazia Pittau, Roberto Zelli, Riccardo Massari

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DOI: 10.4236/me.2011.23029                

Abstract

This paper examines how spatial price differentials affect income distribution in Italy. Established results concerning disparities between the Northern and Southern regions of Italy hold up when adjusting incomes for the regional purchasing power. Poverty is still concentrated in the Southern part of the country. Furthermore, the cost-of-living indices that have the highest impact on the Italian income distribution are those accounting for regional differential in housing prices.

Keywords

Income Distribution, Regional Purchasing Power Parity, Italy

Conflicts of Interest

The authors declare no conflicts of interest.

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