We examine the issue of the value of political connections in the context of Italy where, over the last two decades, Silvio Berlusconi, a tycoon of a vast business group, has been the leader of the conservative political coalition. This paper investigates whether firms which supported from the very start Silvio Berlusconi in his bid to become prime minister in 1994 did better than competitors over the following years. Using balance sheet data for the period 1985 ‐2010, we find that the 100 firms which supported the foundation of his party in 1994 did better than the competitors in terms of value added and employment but did not do significantly better in terms of productivity.
|Status||Udgivet - 2017|
Leonardi, M., Mossucca, R., Schivardi, F., & Severgnini, B. (2017). Gains from Early Support of a New Political Party: The Italian Case of Silvio Berlusconi. https://www.aeaweb.org/conference/2017/preliminary/paper/FtFf3669