Abstract
This paper deals with the asymmetric regional effects of austerity policies in Italy in the current crisis. We discuss how austerity has caused a substantial downsizing of interregional redistribution, thus amplifying the economic downturn in Southern regions. First, we look at the regional distribution of the cost of austerity in terms of both higher tax burden and cuts in public expenditure. Then, we focus on the declining pattern experienced by both public investment and industrial policy.
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