Red Tape Reduction and Firm Entry: Evidence from an Italian Reform

17 Pages Posted: 6 Feb 2016

Date Written: July 23, 2015

Abstract

We estimate the effects of a simplification in the bureaucratic regulation for doing business on firm demographics in Italy, where a 2011 legislation reform required all municipalities to institute a one-stop shop for doing business. We use data for all Italian firms active in private non-financial industries and exploit the staggered implementation of the policy by municipalities in order to identify its causal effect. The results indicate that the one-stop shop increased entry rates and survival probability at one year. This effect is due essentially to sole proprietorships, which are plausibly those that benefit the most from reductions in red tape.

Keywords: red tape costs, firm entry, one-stop shop

JEL Classification: L11, M13, L51

Suggested Citation

Amici, Monica and Giacomelli, Silvia and Manaresi, Francesco and Tonello, Marco, Red Tape Reduction and Firm Entry: Evidence from an Italian Reform (July 23, 2015). Bank of Italy Occasional Paper No. 285. Available at SSRN: https://ssrn.com/abstract=2728301 or http://dx.doi.org/10.2139/ssrn.2728301

Monica Amici

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Silvia Giacomelli

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Francesco Manaresi (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Marco Tonello

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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