Abstract

A recent debate in Italy has stressed the relevance of the so called «municipal capitalism», i.e. of the increasing presence of the firms owned by local governments in the public services sectors. These firms are suspected of being ways on the one hand to by-pass public finance constraints and on the other hand to distort competition in sectors where local authorities are in charge also of public regulation. The aim of this article is to return a descriptive analysis of direct and indirect holdings by local governments and to give evidence of their impact on the Italian economic activity and on their operating performance.