Europe's nations and regions

Paolo Acciari, Alberto Polo, Gianluca Violante, 13 July 2019

Intergenerational mobility is viewed as a proxy for a fair and fluid society, as it sheds light on the extent to which individuals with different initial conditions are presented with equal opportunities to succeed. This column investigates intergenerational income mobility in Italy and finds income persistence to be quite linear, except at the very top of the income distribution. It also finds a steep difference by region, with provinces in the north being more egalitarian and more upwardly mobile than in the south.

Michele Cantarella, Nicolò Fraccaroli, Roberto Volpe, 11 July 2019

'Fake news' has undeniably been biased in favour of populist or anti-establishment parties. As politically charged misinformation has been proliferating online, it is no wonder that many have been questioning whether the spread of fake news has affected the results of recent elections, contributing to the growth of populist party platforms. This column examines evidence from a natural experiment occurring in Italy and discusses how fake news might have played a less than obvious role in influencing political preferences during the general elections of 2018.

Gianmarco Ottaviano, 03 July 2019

Economic geography strikes back. After a couple of decades of easy talk about the ‘death of distance’ in the age of globalisation, the promise of a world of rising living standards for all is increasingly challenged by the resilience of regional disparities within countries. As long as many people and firms are not geographically mobile – and those who are tend to be the most skilled and productive – easier distant interactions can actually strengthen rather than weaken agglomeration economies. Recent electoral trends in Europe can be understood to a surprisingly large extent from this angle. 

Richard Friberg, Frode Steen, Simen Ulsaker, 02 July 2019

Consumers often travel to neighbouring countries to shop at cheaper prices. This column uses sales data from a Norwegian grocery chain to examine how cross-border shopping into Sweden responds to changes in relative prices. It shows that the response to price changes is highest at some distance from the border, where consumers respond by reconsidering whether or not to travel abroad for their shopping.

Marco Buti, István Székely, 28 June 2019

The EU11 economies are among the most open economies globally. The process of trade integration and the creation of GVCs have also drove a significant inflow of FDI into these countries. This column shows that while integration in the EU and FDI have enhanced their growth potential, these developments have also made them more vulnerable to external shocks. Domestic and EU-level reforms in the EU11 should focus on increasing economic and social resilience. 

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