Italian GDP to Surge by 11% with Increased Competition in Service Sector!
The article examines how increasing competition in the service sector in Italy can impact the country's economy. By using a model that includes nontradable goods as services and considering monopolistic competition in labor, manufacturing, and services markets, the researchers found that reducing markups in Italian services to levels seen in other euro area countries could lead to an 11% increase in Italian GDP and a 3.5% rise in welfare. Most of the GDP growth would occur within the first three years, with limited spillover effects to the rest of the euro area.