Mussolini meets Marshall in the city

Figures & data

Table 1. Summary statistics.

	Observations	Mean	SD	Minimum	Maximum
Panel A: All cities
Density	2079	453.21	847.14	17.75	13,599.60
Population	2079	19,767.97	78,106.85	2629	2,464,037
Consolidation	2079	0.14	0.35	0	1
Labour productivity	2079	1586.71	543.88	453.33	4921.05
Value added	2079	17,661.92	95,241.67	637.44	2,914,881
Coastal location	2079	0.16	0.37	0	1
Provincial capital	2079	0.05	0.22	0	1
Southern location	2079	0.40	0.49	0	1
Surface area	2079	71.10	77.95	1.62	1307.71
Altitude	2079	233.87	229.22	0	1211
Difference in altitude	2079	533.75	547.48	2	3282
Panel B: Consolidating cities
Density	302	694.52	1078.69	17.91	9484.80
Population	302	38,474.29	122,279.20	2781.83	1,469,832
Labour productivity	302	1888.34	577.83	552.12	3848.47
Value added	302	40,829.04	160,169.30	637.44	2,396,984
Coastal location	302	0.17	0.38	0	1
Provincial capital	302	0.14	0.35	0	1
Southern location	302	0.27	0.44	0	1
Surface area	302	64.65	73.51	3.97	466.96
Altitude	302	206.66	191.70	1	888
Difference in altitude	302	605.45	569.51	3	2,422
Panel C. Not consolidating cities
Density	1777	412.20	794.28	17.75	13,599.60
Population	1777	16,588.84	67,337.39	2629	2,464,037
Labour productivity	1777	1535.45	520.98	453.33	4921.05
Value added	1777	13,724.69	78,477.69	710.90	2,914,881
Coastal location	1777	0.16	0.37	0	1
Provincial capital	1777	0.03	0.18	0	1
Southern location	1777	0.42	0.49	0	1
Surface area	1777	72.19	78.64	1.62	1307.71
Altitude	1777	238.49	234.73	0	1211
Difference in altitude	1777	521.57	542.87	2	3282

Table 2. First-stage estimates (ordinary least squares – OLS).

	(1)	(2)	(3)	(4)	(5)	(6)
	Density	Density	Density	Density	Density	Density
Consolidation	0.527***	0.514***	0.498***	0.498***	0.559***	0.462***
	(0.0714)	(0.0720)	(0.0708)	(0.0687)	(0.0695)	(0.0677)
Southern location		−0.0853*	−0.172***	0.0816	0.112**	0.122**
		(0.0493)	(0.0510)	(0.0531)	(0.0516)	(0.0510)
Coastal location			0.408***	−0.0605	0.199**	0.167**
			(0.0657)	(0.0695)	(0.0809)	(0.0807)
Altitude				−0.253***	−0.126***	−0.105***
				(0.0185)	(0.0266)	(0.0261)
Difference in altitude					−0.153***	−0.171***
					(0.0215)	(0.0210)
Provincial capital						0.974***
						(0.105)
Constant	5.348***	5.385***	5.353***	6.522***	6.679***	6.643***
	(0.0251)	(0.0311)	(0.0313)	(0.0885)	(0.0931)	(0.0907)
Observations	2079	2079	2079	2079	2079	2079
R^2	0.029	0.030	0.049	0.143	0.170	0.208
First-stage F-statistics	54.48	51.09	49.64	52.52	64.73	46.68

Note: Continuous variables are in logs. Robust standard errors are shown in parentheses. ***p < 0.01; **p < 0.05; *p < 0.10.

Table 3. Reduced-form estimates (ordinary least squares – OLS).

	(1)	(2)	(3)	(4)	(5)	(6)
	Productivity	Productivity	Productivity	Productivity	Productivity	Productivity
Consolidation	0.212***	0.168***	0.158***	0.158***	0.153***	0.116***
	(0.0204)	(0.0193)	(0.0181)	(0.0181)	(0.0183)	(0.0174)
Southern location		−0.301***	−0.354***	−0.346***	−0.349***	−0.345***
		(0.0141)	(0.0136)	(0.0147)	(0.0147)	(0.0141)
Coastal location			0.248***	0.233***	0.214***	0.202***
			(0.0185)	(0.0211)	(0.0234)	(0.0226)
Altitude				−0.00797	−0.0176**	−0.00977
				(0.00502)	(0.00681)	(0.00663)
Difference in altitude					0.0115**	0.00471
					(0.00525)	(0.00512)
Provincial capital						0.371***
						(0.0201)
Constant	7.281***	7.410***	7.391***	7.427***	7.416***	7.402***
	(0.00790)	(0.00845)	(0.00842)	(0.0246)	(0.0247)	(0.0239)
Observations	2079	2079	2079	2079	2079	2079
R^2	0.048	0.235	0.304	0.305	0.306	0.362

Note: Continuous variables are in logs. Robust standard errors are shown in parentheses. ***p < 0.01; **p < 0.05; *p < 0.10.

Table 4. Main results (two-stage least squares – 2SLS).

	(1)	(2)	(3)	(4)	(5)	(6)
	Productivity	Productivity	Productivity	Productivity	Productivity	Productivity
Density	0.402***	0.326***	0.317***	0.317***	0.274***	0.252***
	(0.0519)	(0.0435)	(0.0439)	(0.0429)	(0.0350)	(0.0413)
Southern location		−0.274***	−0.300***	−0.372***	−0.380***	−0.376***
		(0.0194)	(0.0214)	(0.0205)	(0.0185)	(0.0179)
Coastal location			0.119***	0.252***	0.159***	0.159***
			(0.0314)	(0.0273)	(0.0287)	(0.0274)
Altitude				0.0723***	0.0169*	0.0167*
				(0.0125)	(0.00950)	(0.00910)
Difference in altitude					0.0534***	0.0477***
					(0.00779)	(0.00881)
Provincial capital						0.126**
						(0.0545)
Constant	5.129***	5.656***	5.695***	5.360***	5.585***	5.730***
	(0.283)	(0.239)	(0.240)	(0.285)	(0.237)	(0.277)
Observations	2079	2079	2079	2079	2079	2079
R^2	−0.932	−0.342	−0.282	−0.204	0.002	0.081

Note: Continuous variables are in logs. Robust standard errors are shown in parentheses. ***p < 0.01; **p < 0.05; *p < 0.10.