01879cas a2200277 a 4500 AALejournalIMF015390 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513580630 1018-5941 BD-DhAAL BD-DhAAL Giordano, Raffaela. Does Public Sector Inefficiency Constrain Firm Productivity : Evidence from Italian Provinces / Raffaela Giordano, Sergi Lanau, Pietro Tommasino, Petia Topalova. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies the effect of public sector efficiency on firm productivity using data from more than 400,000 firms across Italy's provinces. Exploiting the large heterogeneity in the efficiency of the public sector across Italian provinces and the intrinsic variation in the dependence of industries on the government, we find that public sector inefficiency significantly reduces the labor productivity of private sector firms. The results suggest that raising public sector efficiency could yield large economic benefits: if the efficiency in all provinces reached the frontier, output per employee for the average firm would increase by 9 percent. Mode of access: Internet Lanau, Sergi. Tommasino, Pietro. Topalova, Petia. IMF Working Papers; Working Paper ; No. 2015/168 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/168/001.2015.issue-168-en.xml IMF e-Library