Pork, Infrastructure and Growth: Evidence from the Italian Railway Expansion,

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ID: 338495
2026
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Abstract
Abstract We study the political economy of transport infrastructure placement and its long-term impact, exploiting quasi-random variation in political factors. Using unique data from XIX-century Italy and deploying a regression discontinuity design, we focus on close races to show that towns in marginal districts supporting winning candidates were more likely to be reached by a railway. Using alignment with the government as a natural instrument for infrastructure placement, we then show that over the following century, services - rather than manufacturing - grew faster in connected municipalities. Our results also indicate that political allegiances likely helped towns with lower growth prospects.
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Authors
Journal journal of the european economic association
Year 2026
DOI
10.1093/jeea/jvag067
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