Abstract

In this paper we propose a new definition of the Made in Italy that includes the consumer services (tourism). This new definition is based on the concept of Sense of Italy (SofI) that characterizes Italy as a generator of emotions and business revenue. More precisely, SofI is a meta- brand, or super-brand, where the consumers choice is driven by the country of origin effect. Empirical tests show a positive asymmetric response of SofI to business cycle in the following direction: the impact of recessions is smaller than the impact of expansions. Moreover, the SofI aggregate generates and exploits market power via premium pricing in a lot of conditions, despite the internal deficits deriving from the Italian productive environment.