Essays on urban economics and industrial organization

This thesis integrates three essays on urban economics and industrial organisation, focusing on local economies and the impact of urban changes and policies on non-tradable sectors. The first chapter explores the dynamics of housing prices as they impact on local economic activities in urban areas. Using a unique empirical strategy, the analysis exploits the staggered implementation of a district heating system in Turin, Italy, as an exogenous shock to house prices. The findings reveal the distinct impact of real estate fluctuations on different sectors of the economy, highlighting in particular the vulnerability of non-tradable sectors. The second chapter examines the impact of tourism on the local economy, with a particular focus on the role of Airbnb in Turin. Using a novel instrumental variable approach, the study examines the different impacts of Airbnb on tourism-oriented businesses versus other local services, providing insights into the complex interplay between tourism and urban economic activities. The third chapter assesses the effects of the Bersani Law, a deregulation policy, on the Italian restaurant industry. It highlights the dual effects of increased competition and employment growth, as well as challenges such as reduced job security and lower wages. This chapter contributes to the understanding of the broader impact of economic liberalisation policies on market dynamics and labour market outcomes. Overall, the thesis provides a comprehensive analysis of the relationships between urban development, economic activities and policy choices. It provides insights on cities, with important implications for urban planning and policy-making.