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The Electoral Impact of Wealth Redistribution: Evidence from the Italian Land Reform * Bruno Caprettini Lorenzo Casaburi Miriam Venturini October 2019 Abstract Governments often implement large-scale redistribution policies to gain political support. However, little is known on whether such policies generate sizable gains, whether these gains are persistent, and why. We study the political consequences of a major land redistribution program in Italy. Using a panel spatial regression discon- tinuity design, we show that the reform generated large electoral gains for the incum- bent Christian Democratic party, and similarly large losses for the Communist party. The electoral effects persist over four decades, in which the agricultural sector shrank dramatically. Analysis of fiscal transfers, public sector employment, and referendum outcomes suggests that the reform initiated a repeated exchange: the incumbent party continued promoting the interests of treated towns even after the land redistribution ended. Additional analysis finds less support for other potential mechanisms, includ- ing voters’ long-term memory, changes in voters’ beliefs, and mechanical correlation in voting over time. Keywords: land reform, redistribution, voting, Italy. JEL Classification: P16, Q15, N54, D72. * We received valuable comments from Ciccio Amodio, Pietro Biroli, Enrico Cantoni, Matteo Cervellati, Decio Coviello, Rafael Di Tella, Stefano Gagliarducci, Luigi Guiso, Michael Kremer, Guilherme Lichand, Mon- ica Martinez-Bravo, Ben Marx, Claudio Michelacci, Elias Papaioannou, Thomas Piketty, Giacomo Ponzetto, Joachim Voth and participants at presentations held at the 2019 RIDGE Political Economy Workshop, the 2019 Barcelona Summer Forum, the UZH Workshop in Political Economy and Development, the 2019 ZEW Public Finance Conference, the 2018 Swiss Development Economics Network conference, and at EIEF, IADB, IMT, McGill, Milano Labor Lunch Seminars, PSE, SSE, Sussex, Tor Vergata, U Bologna, U Bozen, U Mary- land, UPF, U Wien and U Zurich. Tommaso d’Amelio, Luca Bagnato and Jelena Reljic provided excellent research assistance. We thank Massimiliano Baragona for help accessing the archives of the Italian Ministry of the Interior, Eleonora Cesareo for sharing material from ALSIA archive and Nunzio Primavera for very useful discussions. Bruno Caprettini acknowledges financial support from the Swiss National Science Foun- dation through the SNF Ambizione (grant PZ00P1 173998). The authors declare that they have no relevant or material financial interests that relate to the research described in this paper. University of Zurich, Schonberggasse 1, CH-8001 Zurich. Caprettini: E-mail: [email protected]. Casaburi: E-mail: [email protected]. Venturini: E-mail: [email protected].
Transcript
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The Electoral Impact of Wealth Redistribution:Evidence from the Italian Land Reform ∗

Bruno Caprettini Lorenzo Casaburi Miriam Venturini†

October 2019

Abstract

Governments often implement large-scale redistribution policies to gain politicalsupport. However, little is known on whether such policies generate sizable gains,whether these gains are persistent, and why. We study the political consequences ofa major land redistribution program in Italy. Using a panel spatial regression discon-tinuity design, we show that the reform generated large electoral gains for the incum-bent Christian Democratic party, and similarly large losses for the Communist party.The electoral effects persist over four decades, in which the agricultural sector shrankdramatically. Analysis of fiscal transfers, public sector employment, and referendumoutcomes suggests that the reform initiated a repeated exchange: the incumbent partycontinued promoting the interests of treated towns even after the land redistributionended. Additional analysis finds less support for other potential mechanisms, includ-ing voters’ long-term memory, changes in voters’ beliefs, and mechanical correlation invoting over time.

Keywords: land reform, redistribution, voting, Italy.

JEL Classification: P16, Q15, N54, D72.

∗We received valuable comments from Ciccio Amodio, Pietro Biroli, Enrico Cantoni, Matteo Cervellati,Decio Coviello, Rafael Di Tella, Stefano Gagliarducci, Luigi Guiso, Michael Kremer, Guilherme Lichand, Mon-ica Martinez-Bravo, Ben Marx, Claudio Michelacci, Elias Papaioannou, Thomas Piketty, Giacomo Ponzetto,Joachim Voth and participants at presentations held at the 2019 RIDGE Political Economy Workshop, the2019 Barcelona Summer Forum, the UZH Workshop in Political Economy and Development, the 2019 ZEWPublic Finance Conference, the 2018 Swiss Development Economics Network conference, and at EIEF, IADB,IMT, McGill, Milano Labor Lunch Seminars, PSE, SSE, Sussex, Tor Vergata, U Bologna, U Bozen, U Mary-land, UPF, U Wien and U Zurich. Tommaso d’Amelio, Luca Bagnato and Jelena Reljic provided excellentresearch assistance. We thank Massimiliano Baragona for help accessing the archives of the Italian Ministryof the Interior, Eleonora Cesareo for sharing material from ALSIA archive and Nunzio Primavera for veryuseful discussions. Bruno Caprettini acknowledges financial support from the Swiss National Science Foun-dation through the SNF Ambizione (grant PZ00P1 173998). The authors declare that they have no relevantor material financial interests that relate to the research described in this paper.

†University of Zurich, Schonberggasse 1, CH-8001 Zurich. Caprettini: E-mail:[email protected]. Casaburi: E-mail: [email protected]. Venturini: E-mail:[email protected].

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1 Introduction

The political objective of many large-scale redistribution policies is to establish political

support (Acemoglu, 2001).1 It is often maintained that successful redistribution during the

first years in power can generate lasting political returns and translate into long tenures in

office (cf. Kennedy, 1999 for Roosevelt’s US and Galli, 1993 for post-World War II Italy).

However, surprisingly little empirical evidence supports these claims. Moreover, the mecha-

nisms that allow the initial gains to translate into persistent political support remain largely

unexplored.

We study the political impact of redistribution of a major asset: land. Land redistribution

is a powerful tool to gain political support in agrarian societies: revolutionary governments of

1790s France, 1920s Russia, and 1940s China, among many others, passed ambitious plans of

land redistribution during the first years in power. In democratic countries, governments often

try to prevent extreme left-wing parties from taking power through land redistribution, as it

happened in several Latin American countries after the 1958 Cuban revolution (Binswanger

et al., 1995).

In this paper, we study the electoral impact of a large-scale land reform that took place

in Italy in the early 1950s, when the Christian Democrat government redistributed land in

an effort to halt the rise of Communism in the countryside. We identify the electoral effect

of the reform with a panel spatial regression discontinuity design, using data from several

elections. The land reform only targeted towns in well-defined reform areas. This allows us

to study differential changes in voting outcomes between treated and control towns close to

the border of the reform.

A few studies have looked at impact on citizens’ preferences and voting of land titling in

Latin America (Di Tella et al., 2007; De Janvry et al., 2014; Larreguy et al., 2018). Relative

to this work, we make two contributions. First, we focus on a reform that redistributed

land, not one that assigned property rights of unclaimed land. Second, our empirical design

is particularly suited to study the long-term effect of the reform because, unlike approaches

that exploit variation in the timing of the implementation, in our context control towns never

experience redistribution. This allows us to study the persistence of the electoral effects long

after redistribution is completed.2

The key identification assumption is that, close to the border, treated and control towns

1Prominent examples of redistribution programs that were successful in creating political support includeFranklin Roosevelt’s New Deal policies (Wright, 1974) and Lula’s social programs in Brazil (Zucco Jr, 2013).

2In this regard, our study also differs from Gonzalez (2013), who uses an instrumental variable approachto study the short-term electoral effect of the 1960s Chilean land redistribution.

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have parallel trends. A first challenge is that the Government drew some of the reform borders

strategically, to include towns that in 1950 experienced land occupations and riots (Rivera,

1952; Percoco, 2017). Historical accounts suggest that in the South the government used

the land reform to check the growth of the Communist party (Calasso, 1952 and documents

in the DC archive at the Istitute don Luigi Sturzo). In contrast, there is no record of

strategic behavior in Northern and Central Italy in the DC archive nor in the accounts of

contemporaries (De Caro, 1951; Toldo, 1957). Consistent with these accounts, formal tests

show that towns on the two sides of the border are on similar pre-trends (and, more generally,

they are balanced on a wide range of observables) in the Center-North but not in the South.

These results indicate that our empirical approach is valid for the Northern and Central

regions of Italy only, and we focus on these regions throughout the paper.

After verifying that the reform had an impact on land distribution, we show that Christian

Democrats (DC ) vote shares rise sharply in treated towns in the first elections after the

reform.3 DC experiences a four percentage point increase in vote share in treated towns (from

a control mean of 35%). Christian Democrats’ gains are mirrored by the electoral losses of

the Communist Party. The persuasion rate —the percentage of beneficiaries who start voting

DC among the beneficiaries who were not already DC supporters —is 0.64. These effects

are large if compared to the impact of pork-barrel spending (Levitt and Snyder Jr, 1997) or

other political interventions (DellaVigna and Gentzkow, 2010). These immediate electoral

gains are also consistent with the observations of a number of contemporary commentators

(Russo, 1955; Toldo, 1957).

The electoral benefits of the reform remain remarkably stable for the following four

decades. During this period, the DC always controlled the government, until a major cri-

sis upended Italian politics in 1993-94 and led to the break-up of the Christian Democratic

party. Treated towns appear to support the DC policy agenda, as well as its candidates in

the elections. For instance, we find that in 1974 treated towns were more likely to follow DC

directions in a highly divisive referendum on divorce.

In the final part of the paper, we examine several potential mechanisms for the persistence

of the electoral impact of the reform. First, we consider long-term memory of redistribution:

indeed, anecdotal evidence suggests that some of the original beneficiaries had a vivid mem-

ory of the reform many years after (Zucco et al., 2011). However, four decades of stable

persistence contrasts with extensive evidence of short-lived electoral effects of redistribution

3Most of the other empirical studies of land reforms focus on economic outcomes, such as agriculturalproductivity (Montero, 2018), poverty reduction (Banerjee et al., 2002; Besley and Burgess, 2000), andstructural transformation (Galan, 2018).

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policies in other settings (Bechtel and Hainmueller, 2011; Zucco Jr, 2013; Achen and Bar-

tels, 2017). In addition, we note that our effects persists against the backdrop of profound

economic and social changes, as in the 40 years following the land reform agriculture lost

importance, population grew rapidly, and many of the original beneficiaries died.4

We provide evidence the reform initiated a system of repeated exchange between voters

and DC politicians. After the redistribution of land, as the electoral effects of the reform

potentially started to wane, DC governments continued to invest more in treated towns to

maintain their political advantage. This exchange built on the initial political gains created

by the reform and took a variety of forms. We discuss qualitative evidence of the role of

agricultural cooperatives close to DC (Coldiretti) in organizing the consensus among bene-

ficiaries. We also show that after the reform, but not during it, treated towns receive more

fiscal transfers from the central government, and have a greater share of workers employed

in the public sector. This suggests a complementarity in terms of electoral returns between

the initial reform—a massive redistribution—and the following investments: an extra dol-

lar of “electoral investment” must have generated greater electoral returns to the local DC

parliament candidates in towns that had redistributed land than in towns that had not.

We also consider the possibility that land redistribution affected voting because land

ownership changes voters’ beliefs and attitudes. A large literature shows that wealth is an

important determinant of preferences for redistribution (Giuliano and Spilimbergo, 2013;

Fisman et al., 2015; Piketty, 2018), and that these preferences in turn affect voting (Fisman

et al., 2017). Existing work also shows that land titling programs may make beneficiaries

more pro-market (Di Tella et al., 2007; De Janvry et al., 2014).5 We examine this channel

in our setting and find little evidence for such mechanism. Economic conservatism cannot

explain why in treated towns voters support DC agenda in the divorce referendum. In

addition, the reform did not affect home-ownership rates between 1961 and 2001. This result

speaks against the idea that people living in treated towns were wealthier. Finally, we look

for evidence of economic conservatism in the post-1992 elections, when Berlusconi’s party,

Forza Italia, ran on a right-wing platform based on tax cuts and other conservative economic

4Cantoni et al. (2019) and Ochsner and Roesel (2017) show how past event can impact elections yearslater. In their case history is “reactivated” when current politicians use past event in their propaganda. Inthe context of Italy, neither Christian Democrats nor Communists campaigned on the land reform after the1950s: for instance, the last mention of “land reform” in working documents of the Italian Parliament dates10 April 1959.

5In a different context, Bazzi et al. (2018) show that the aborted Indonesian land reform of the 1960sstrengthened Islamist parties years later because it promoted land transfer to Islamic charities. In Indonesiathe land reform was eventually revoked, and had an effect on voting and beliefs only indirectly —by promotingthese land transfers to religious groups.

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policies. We find no evidence of greater support for Forza Italia in treated towns, which

suggests again that greater economic conservatism can not explain the lasting support for

Christian Democrats. Additional analysis finds little support for other explanations for the

persistence of the voting impact, including changes in agricultural productivity or mechanical

correlation in vote share across time.

The rest of the paper proceeds as follows. Section 2 provides a background on the land

reform. Section 3 describes data sources. Section 4 presents the empirical strategy and

Section 5 the main results. Section 6 sheds light on the mechanisms behind the persistence

of the electoral results. Section 7 concludes.

2 Background: the 1950 Land Reform

At the end of World War II, Italian agriculture was backward and poor. Sharecropping

and tenant contracts were widespread and most laborers did not own any land. In 1948,

there were around 2.5 million landless rural workers and an additional 1.7 million workers

who owned estates too small to support one household (Medici, 1948 cited by Gullo, 1950).

After the end of World War II, the countryside became fertile ground for Communists’

propaganda: between 1948 and 1951 Communist leaders led occupations of uncultivated

plots in large estates in South Italy. In several occasions police intervention led to violent

riots and deaths (Miceli, 1950; Russo, 1955; Rossi-Doria, 1958).

Fearing that a coalition between rural and urban workers would push the Communists to

power, the Christian Democrat (DC) government decided to redistribute some of the land.6

Between May and October 1950, the Italian Parliament approved two separate bills that

prescribed land redistribution. The bills targeted nine large reform areas (Figure 1), com-

prising around 29% of the country.7 During the parliamentary discussion and in the bills,

6The hope was that limited redistribution would curb the demands for more sweeping reforms andcontain the growth of the Communists in the countryside (Rossi-Doria, 1958). A similar process underpinsthe models of Acemoglu and Robinson (2001, 2000). In their theory, elites respond to the threat of revolutionby extending the franchise. See Aidt and Franck (2015) for an empirical test of this theory.

7Law 230 of 12th May 1950 and law 249 of 28th October 1950, known respectively as legge Sila (L.230/1950,L.230/1950) and legge stralcio (L.841/1950, L.841/1950). The areas were: Delta Padano (North East),Maremma (Center-West), Fucino (Center), two separate areas in Campania (Center-South, both managedby the Opera Nazionale dei Combattenti), a broad area that straddled across Molise, Puglia and Lucania(South-East), Sila (South-West) and the whole territory of Sicily. The entire island of Sardinia was alsoaffected by the land reform, but two separate agencies managed expropriations around Cagliari (in theComprensorio di Flumendosa) and in the rest of the island. Our empirical strategy does not allow us tostudy the electoral effect of the reform in Sicily and Sardinia, because these two islands were entirely includedin the reform.

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the Parliament identified regions with extreme land inequality, and delegated the exact def-

inition of the borders of the reform to the Government (Gasparotto et al., 1950a; Germani,

1950). The final legislation left these borders deliberately vague: the laws only stated that

borders had to follow the limits of existing towns and could not stray from what was the

general understanding of the location of these areas (Gasparotto et al., 1950a,b; Fanfani,

1952). The DC government decided the precise definition of these borders and made them

public in February 1951 through a series of executive orders (D.P.R.66/1951; D.P.R.67/1951;

D.P.R.68/1951; D.P.R.69/1951; D.P.R.70/1951).8 For each of the nine reform areas, the bills

created separate public agencies (Enti di Riforma: “Reform Boards”) in charge of land re-

distribution. The bills imposed expropriations of large and inefficient farms. The Parliament

drew a table that classified agricultural estates along two dimensions: size and productivity.

For each category of size and productivity, the table determined the share of land that had

to be expropriated: up to 95 percent of the land in large and unproductive estates, none in

small or productive farms (Figure A.1 from legge stralcio L.841/1950). Land owners received

compensation for the propriety lost in the form of 25-years fixed-rate government bonds

yielding 5% a year.9

The reform areas differ from the rest of the country along many dimensions. For instance,

consistent with the redistributive goal of the reforms, they had higher share of expropriable

estates (Figure A.2). For this reason, as we discuss extensively in Section 4, our empirical

strategy is based on a panel regression discontinuity design that compares changes in voting

behavior across towns close to the reform borders, not on a simple comparison of towns inside

or outside the reform areas.

The identification strategy would not be valid if the DC government successfully manip-

ulated the borders of the reform. Analysis of historical sources provides suggestive evidence

of border manipulation in the South but not in the North. For the South, three observations

suggest manipulation. First, towns that had experienced land occupations before the reform

were more likely to be included in the reform areas (Rivera, 1952; Percoco, 2017). Second,

several observers noted that in the South landlords close to the DC successfully lobbied to

exclude their town from the reform (Calasso, 1952). Third, DC members held long sessions

on the land reform, which mostly focus on the South. An analysis of the records preserved

8The Government did not record the debate that led to the inclusion of towns in the reform areas. Theomission seems deliberate, because the minutes of the Government meeting that defined the reform areascontain detailed information of the debates held before and after the discussion of the land reform (Andreotti,1951).

9Landowners protested against both the form and the level of compensation (Capua, 1952; Pecoraro,1952).

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in the archives of the DC reveals that out of 36 documents related to the land reform, 33

discussed the political situation in Southern towns, and only 2 focused on the North.10

In contrast, DC politicians were not much concerned with the reform areas in the North.

First, internal DC documents are mostly silent on Maremma and Delta Padano. Second, the

original executive orders contain penciled changes to the list of towns included in Maremma

and Delta Padano. These changes are flagged as “clerical errors” (errori materiali), and

suggest imprecise knowledge of the areas (Segni, 1951). Possibly as a result this limited

interest in the Northern reform areas, critics complained about the inclusion of towns where

farms were efficient and land distributed evenly as well as the exclusion of areas where

redistribution was necessary (De Caro, 1951; Toldo, 1957). Taken together, these records

provide suggestive evidence that DC manipulated reform borders in the South. In the North

however, the same records suggest that manipulation may not be a concern for our empirical

strategy. The formal tests in Section 4 support this preliminary conclusion.

The government implemented the reform quickly: it expropriated all land before April

1953 and redistributed it shortly thereafter (Russo, 1955).11 The reform expropriated around

18% of agricultural land in the North and around 13% in the South (Marciani, 1966: p.38

and 86). Rural workers who wanted a plot of land had to apply through one of the public

bodies that managed the reform, and they purchased the estate with the help of thirty-year

public loans at generous rates (3.5%). They could not re-sell the plot before repaying the

debt, and could not clear the debt in advance. For their part, expropriated landlords were not

allowed to purchase land for 6 years. Almost everywhere, eligible applicants vastly exceeded

available land. Excess demand varied across the country though: in the North, the beneficiary

to request ratio was between 60 and 70% (Baldocchi, 1978); in the South significantly lower

at about 25% (Prinzi, 1956; Capobianco, 1992). In the average reform town, 7 owners lost

their land to about 200 beneficiaries (Marciani, 1966). Beneficiaries were 47% farm workers,

37% tenants and 9% small landowners (Marciani, 1966). The vast majority of beneficiaries

were resident of the town where the land was located (Dickinson, 1954, Rossi-Doria, 1958,

Marciani, 1966).

DC maintained a firm control of the whole land redistribution process during the years

immediately following the reform. Responsibility of allocation of expropriated land fell on

Enti di Riforma: new government agencies led by prominent Christian Democratic personal-

10Istitute don Luigi Sturzo, Rome: Archivio della Segreteria DC ; box 9, folder 10: “land reform”. Mostof these records insisted on the political opportunity to redistribute land in order to avoid Communist gainsin the countryside.

11The last executive orders of expropriation date March 31, 1953 (D.P.R.153/1953; D.P.R.154/1953).

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ities.12 These agencies were relatively free to select beneficiaries: although the law specified

eligibility criteria to receive the land, the high number of applications meant that the agencies

had to decide among many qualified applicants (Baldocchi, 1978; Prinzi, 1956; Capobianco,

1992; Marciani, 1966). Politics influenced these decisions: DC officials trying to maximize the

impact of the reform would not assign land to Communist voters unlikely to be persuaded.

Consistent with this, inspection of original application cards reveals that applicants known

to be radical Communist supporters were singled out and denied land (Appendix Figure

A.3). Journalists at the time observed how the boards often favored applicants who moved

closer to the Christian Democratic party (Russo, 1955). In one famous instance, a group of

beneficiaries tore down their Communist membership cards and publicly joined the Christian

Democratic party (Il Mattino, 1951).

Christian Democrats could also influence beneficiaries of the land reform through the

Coldiretti, an association of small landowners. Most beneficiaries joined this organization

because the reform law required them to join one cooperative, and Coldiretti was the largest.

Coldiretti had great influence on its members because it assisted them in the purchase of

inputs and in the sale of output, it offered credit, and, until 1970, it provided health insur-

ance (Primavera, 2018). The Coldiretti and the Christian Democratic party were heavily

connected. For instance, many Coldiretti members served in the Italian Parliament within

the ranks of DC (La Navicella, 2000; Il Coltivatore, 1953, 1958). Importantly, Coldiretti ’s

presence was widespread across the country, not limited to reform areas (Pizzuti, 1967).

3 Data Sources

For this study we combine several town-level datasets, including a number of newly digi-

tized data sources. Here we describe these sources and define the main variables. Appendix

B.2 provides additional details on sources and variable construction.

Reform towns. We start from a map of Italian towns in 195113 on which we classify

every town included in the 1951 land reform. We find the list of reform towns in the exec-

utive orders that enacted the land reform (L.230/1950 and D.P.R.66/1951; D.P.R.67/1951;

12In 1951 the government appointed Bruno Rossi as president of the Ente Delta Padano and GiuseppeMedici as president of Ente Maremma (D.P.R. 29 marzo 1951, a,D.P.R. 29 marzo 1951, b). The former wasclose to the Christian Social wing of DC (Cazzola, 2011), while the latter was a DC senator.

13We obtain this map after combining a shapefile of Italian towns in 2001 with the list of towns enumeratedin the 1951 Census. We create the 1951-2001 correspondence with the help of http://www.elesh.it, awebsite that uses official documents to reconstruct every change of town boundaries in Italy over the past160 years.

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D.P.R.68/1951; D.P.R.69/1951; D.P.R.70/1951) and create the borders of the reform areas

by conflating all contiguous towns inside the reform area. We then use these borders to

calculate the distance from the centroid of every town to the closest reform border.

Electoral outcomes. We source electoral outcomes from Istituto Cattaneo, which pub-

lishes town-level returns of every election of the lower chamber of the Italian Parliament

between 1861 and 2008, along with the results of the 1946 election to the Constitutional

Assembly (Corbetta and Piretti, 2009). Our main results focus on elections between 1946

and 1992, but we also use data from earlier (1919-24) and later (1994-2001) rounds. The

original data report the number of votes cast for every party in each town and election, along

with number of eligible voters and total number of votes cast. We define time-consistent

geographic units and create a correspondence between the towns listed in each election and

the list of towns in 1951.

We integrate these data with two newly digitized databases. First, we collect town-level

returns of the 1974 “referendum on divorce” (Ministero dell’Interno, 1977). Second, we

construct a new database with town-level information on the affiliation of mayors at the time

of the reform. For this purpose, we compile information from the archives of newspapers that

reported the names of mayors affiliated with DC (L’Avvenire d’Italia, 1946) or PC (L’Unita,

1946).

Land distribution. Data on land distribution before the reform come from Medici

(1948), who collected farm-level information on the value and size of land in 1948. The pub-

lication was commissioned by the Italian Parliament and served as the basis of the discussion

of the land reform. From the original publication we digitized Table II, which reports for each

town the number and the value of estates broken down by 11 separate categories of taxable

income. The land reform defined expropriation rules based on taxable income, so this table

allows us to construct the share of estates and the share of land value that the reform allowed

to expropriate. We consider estates that could be expropriated as those with value in one of

the top 4 categories of value. All estates in these categories were worth at least ₤20’000, and

the reform bill prescribed expropriation for estates worth ₤30’000 or more (Appendix Figure

A.1). The 1961 agricultural census (ISTAT, 1962a) includes tables with the number of farms

by type of management (e.g.: owner-operated, tenant farming, share-cropping). We digitize

these tables from the original volumes of the census.14

Economic and demographic characteristics. Data on economic and demographic

characteristics of towns between 1936 and 2001 are from decadal population censuses. ISTAT

14We are not aware of any source that records land distribution in the years immediately after the reform,as even the 1961 agricultural census does not report this information.

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provides digital records for the years 1971-2001 (ISTAT, 1974, 1985, 1995, 2005). We integrate

these data with newly digitized records from the censuses of 1936, 1951 and 1961 (ISTAT,

1937, 1955a, 1965). From each census, we collect town-level information on: total population,

number of men, number of people by age group, number of people in the labor force, number

of workers employed in agriculture, manufacturing and the public sector, number of owner-

occupied houses.

Town balance sheets. We measure transfers from the central government to Italian

towns with records from municipal balance sheets. At the end of every fiscal year, Italian

towns have to provide the Ministry of Interior with detailed balance sheet records. We found

publications summarizing transfers from the central government at the town level for the

years 1952, 1955 and 1959, which we digitize.15 In our analysis, we normalize transfers by

1951 population, as recorded in the census.

Geographical controls. We calculate distance to the coast and to Rome based on

the 1951 map of towns. We use FAO-GAEZ (FAO, 2015) data to measure potential yield of

wheat and maize, and the US Geological Survey database (USGS, 2005) to measure elevation

and slope. Both of these data are defined over a grid covering the entire planet. We join

the original rasters to the shapefile of Italian towns by calculating the average value of these

variables in every cell that falls inside town limits. Finally, we use a map by Missiroli (1934)

to classify Italian towns where malaria was endemic in 1934.

4 Empirical Strategy

This section describes our empirical strategy. First, we illustrate our approach, which

combines spatial regression discontinuity and difference-in-differences. Second, we test our

identification assumptions.

4.1 Panel Spatial Regression Discontinuity

Evaluating the impact of redistribution policies, including their electoral impact, typically

faces major identification challenges. Politicians may target areas where they have stronger

support or where they expect the returns from redistribution to be higher: this would lead

to an upward bias of the estimates. Alternatively, they may target areas where they have

lower or fading political support, leading to downward bias.

15Balance sheet information for later years is recorded only by province and by category of town size.

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The design of the Italian land redistribution program offers an opportunity to overcome

these challenges. Because the reform targeted towns in well-defined reform areas, we can

estimate the electoral impact of the policy by comparing changes in voting outcomes in

treatment and control towns located in proximity of the reform borders. Formally, we combine

a spatial regression discontinuity design (RDD, see Dell, 2010) with difference-in-differences

(DD), exploiting the longitudinal nature of our data (see Grembi et al., 2016 for a similar

approach applied to the study of fiscal rules).

In our preferred specification, we restrict the sample to towns that are located within 25

km from the reform border. In addition, we perform robustness specifications at alternative

bandwidths of 10 km and 50 km.16 Figure 1-Panel B shows 25 km buffers inside (dark red)

and outside (orange) the reform areas we consider in the analysis.17 These buffers include

490 towns. Our empirical strategy is based on the following Panel Regression Discontinuity

Design equation:

yirt =1992∑t=1946

α0t · di +

1992∑t=1946

α1t · di × Ti +

1992∑t=1946

βt · Ti + ηi + ηrt + uirt (1)

where yirt is an electoral outcome in town i, reform area r, election year t; di is the distance of

town i to the closest reform border (our running variable) and Ti is a dummy equal to one for

towns included in the reform. The parameters α0t and α1

t are election year-specific coefficients

on the distance from the border and its interaction with the treatment. Our parameters of

interest are the βt’s: year-specific treatment coefficients. The model also includes town fixed

effects, ηi, and reform area × year fixed effects: ηrt. We cluster standard errors by town.18

Our empirical strategy identifies the causal effect of the land reform on electoral out-

comes under three assumptions. First, parallel trends at the reform border. Second, no

other contemporaneous policy should affect treated and control towns differentially at the

border. Third, the Stable Unit Treatment Value Assumption (SUTVA, Rubin, 1974) must

hold: redistribution in treated towns should not affect voting in control towns. This assump-

tion would be violated if towns excluded from the reform voted against DC to punish the

government. We provide evidence in support of these three assumptions in Section 4.2.

16The optimal bandwidth is approximately 17 km when using the Calonico et al. (2014) method andapproximately 30 km when using the Imbens and Kalyanaraman (2012) or the Ludwig and Miller (2007)designs.

17The discussion in Section 1 suggests that our empirical strategy is not suitable in the South. AppendixTable D.5, shows that key identification assumptions do not hold in the South. In particular, pre-trends invote shares at the border are not parallel.

18Section 5.5 presents alternative specifications and inference approaches.

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Our strategy estimates the (local) treatment effect of the inclusion of a town in the reform

area. This is an “intention to treat” estimate. We do not use variation in the intensity of

actual redistribution for two reasons: i) we only have limited data on the intensity of the

actual redistribution; ii) actual town-level redistribution is likely to depend on a number of

endogenous choices that would compromise identification.

4.2 Testing the Identification Assumptions

In this section, we test the identification assumptions of our empirical strategy. In section

4.2.1, we look at balance at the border for a number of covariates. While our strategy does

not require balance in levels (because town fixed effects capture time-invariant differences),

showing that towns on the two sides of the border were similar at the time of the reform

provides initial support to our approach. Section 4.2.2 examines pre-trends at the border.

Section 4.2.3 discusses other contemporary policies. We address spillovers on control towns

in Section 4.2.4 and then more extensively in Section 5.4.1. Section 4.2.5 summarizes the

results of these tests.

4.2.1 Balance at the Border

To test the balance of observables at the border, we estimate the following RDD model:

yir = α0di + α1 · di × Ti + βTi + ηr + εir (2)

Land distribution: 1948. We first estimate Equation (2) using the share of expropri-

able estates as dependent variable. For this purpose, we digitized administrative data from

Medici (1948) and used the criteria that identified which estates were eligible for expropria-

tion to define two variables of interest.19

Table 1-Panel A shows that the share of expropriable estates is continuous at the border:

in our preferred specification with 25 km bandwidth, the treatment coefficient is 0.002 (s.e.=

0.01), from a control mean of 0.028. Results with 10km and 50km bandwidths are similar.

Vote shares: 1946 and 1948. Table 1-Panel B presents result on vote shares for the

19As explained in Section 3, Medici (1948) reports the number and the value of estates broken down by11 separate categories of estate value. We use this information to construct the share of estates and theshare of land that the 1950 reform allowed to expropriate. We consider expropriable estates as those withvalue in one of the top 4 categories of value. All estates in these categories were worth at least ₤20’000. Thereform bill prescribed expropriation for estates worth ₤30’000 or more (Appendix Figure A.1). AppendixTable C.1-Panel A shows balance using alternative thresholds to define high-value land estates.

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Christian Democrats and the Communist Party in the 1946 and 1948 elections.20 Baseline

vote shares are continuous at the border. The average DC vote share in control towns was

0.31 in 1946 and 0.43 in 1948. The RDD coefficients on DC vote shares are -0.025 in 1946

(s.e.=0.025) and -0.028 in 1948 (s.e.=0.028). Figure 2-Panel A presents a bin scatter with

graphical evidence of continuity at the border. Similarly, the average PCI vote share in

control towns was 0.24 in 1946 and 0.41 in 1948. The RDD coefficients on PCI are 0.021

in 1946 (s.e.=0.031) and 0.035 in 1948 (s.e.=0.034). Figure 2-Panel D shows the bin scatter

for the Communist vote share and provides graphical evidence of continuity at the border.

Appendix Table C.1-Panel B, which presents results from the analysis of the newly-digitized

database of town mayors, also shows that mayor’s political affiliation at the time of the reform

is balanced at the threshold.

Geographic and economic variables. Table 1-Panel C presents results on a number

of geographic and economic variables from the 1951 census. All of these variables are con-

tinuous at the border. Importantly, potential yields of the two major crops of these areas

(wheat and maize) and the share of workers in the agricultural sector are balanced at the

border, suggesting that productivity or the number of potential beneficiaries did not drive

the definition of the border. Finally, we show that, at the border, malaria prevalence was

similar in treatment and control towns.

McCrary test. Appendix Figure C.7.1 presents the results of a McCrary test on the

density of observations (i.e. towns) at the border. The figure shows a discontinuous drop

in the number of towns inside the reform areas (t-statistics=-2.07). While this result may

generate concerns of manipulation, we believe that the geometry of the land reform drives

this pattern. Since reform areas are clusters of contiguous towns, and since on average

these clusters are convex sets (see Figure 1), we conjecture that there will be a mechanical

increase in the number of towns right outside the border. Appendix Figure C.7.2 provides an

intuition of this argument. In the spirit of randomized inference, we validate this intuition by

re-estimating the McCrary test on a number of fictitious reform areas. Appendix C.7 presents

these simulations: the results support our conjecture, and suggest that the discontinuous drop

in the number of towns at the border is not the result of manipulation, but a mechanical

consequence of the geography of convex clusters of towns.

20In 1948 the Communist Party run together with the Socialist Party and other smaller parties in thePopular Democratic Front (FDP). Because we cannot separate votes for the Communists and for the Social-ists, in 1948 we look at FDP vote shares. Correlation between vote shares of FDP and PCI is 0.85 betweenthe 1946 and 1948 elections and 0.8 between the 1948 and 1953 elections.

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4.2.2 Parallel Pre-Trends at the Border

The key identification assumption of our empirical strategy is the presence of parallel

trends at the border. We provide support for this assumption by studying pre-trends of vote

shares and census variables.

Vote shares: 1946-1948. We first present estimates of Equation (2) when the outcome

variable is the change in vote shares of Christian Democrats and Communists from the 1946

elections to the 1948 elections. Table 1-Panel D supports our empirical approach. We find

parallel pre-trends between treatment and control towns at the border: the coefficient on the

DC pre-trend is -0.03 (s.e.=0.02), from a control mean of 0.12. Figure 2-Panel B presents

a bin scatter and shows graphically the continuity at the border. The coefficient on the

Communist Party pre-trend is 0.04 (s.e.=0.03), from a control mean of 0.17. Figure 2-Panel

E shows the bin scatter for this variable and confirms its continuity at the border.

Pre-Fascism elections. One concern is that only two elections took place before the

land reform and after World War II. Appendix Figure C.2.1 reports treatment coefficients

from a panel RDD regression that includes the 1919, 1921, and 1924 elections (the last ones

before the Fascist dictatorship), as well as the 1946 and the 1948 ones (we normalize the

coefficient of 1948 to zero). Parallel trends hold for the Italian Popular Party (PPI), the

Catholic Party to whom most of the DC founders belonged before the war (Appendix Figure

C.2.1-Panel A). We also look at two left-wing parties: the Italian Socialist Party (PSI) and

the Italian Communist Party (PCI). The PSI was the largest left-wing party until 1947: it

won relative majorities in the elections of 1919 and 1921 and had one of his leaders, Giacomo

Matteotti, killed by fascist hit men in 1924.21 The Communist party was relatively small

before the war: founded in 1921, it collected 4.6% of votes that year and 3.7% in 1924. PSI

vote shares exhibit parallel pretrends (Appendix Figure C.2.1-Panel B). PCI vote shares seem

to grow slightly faster in treatment towns, although pre-trends coefficients are not significant

(Appendix Figure C.2.1-Panel C).

Census variables. We digitized town-level data from the 1936 and 1951 population

censuses. Table 1-Panel E presents estimates of equation (2) on the 1936-51 changes of

these variables. Overall, we observe parallel pre-trends both in population and employment

variables. The pre-trend analysis of these census variables spans a longer period than the

electoral ones (1936-51 vs. 1946-48) and it ends right at the time of the reform (1951).

21PSI lost ground to the Communists after 1947, when it split into 2 parties. One of these parties rantogether with PCI in 1948. After that year, PSI never received more than 15% of votes. When we look atthe effect of the reform on PSI vote shares in 1946-92 we find no significant effect (see Appendix Table D.1).

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Together with the results of electoral pre-trends, this analysis indicates that no relevant

change occurred differentially across the border neither in the decades leading to the reform

nor in the few years immediately preceding it.

4.2.3 Contemporary Policies

We now discuss the possibility that contemporaneous policies may confound the effect of

the reform. In the years following World War II, Italian governments implemented a number

of policies to promote economic development. Examples include the post-World War II

malaria eradication program (1947-51; see Buonanno et al., 2019), the Marshall plan (1948-

51; see Giorcelli, 2019), the Cassa del Mezzogiorno (1950-84) and the “Home plan” (1949-63).

In those years, Italian governments also signed the General Agreement on Tariffs and Trade

(1950) and joined the European Coal and Steel Community (1951). Starting from 1975,

some Italian regions began receiving money through the European Regional Development

Fund. Crucially for our identification, none of these policies targeted exactly the same areas

included in the land reform. Moreover, because reform areas did not overlap for the most

part with any other administrative unit, any shock that was specific to one of these units

would affect both treated and control towns, and it would not compromise our identification.

4.2.4 Stable Unit Treatment Value Assumption

The reform could induce a change in voting in control towns relative to a counterfactual

where no reform takes place. This may happen if towns that are (barely) left out of the

reform areas resent exclusion and punish the incumbent party. If this were the case, SUTVA

would not hold.

To investigate this possibility, we study whether, in control towns, support for the in-

cumbent party fell differentially more in those towns that had higher share of agricultural

workers. These towns had higher potential benefits from the reform and thus higher potential

resentment from exclusion. We find no evidence of this effect. Since this test builds on the

discussion of the main results, we postpone a complete treatment to Section 5.4.1.

4.2.5 Discussion

The evidence of this section suggests that the identification assumptions required for the

Panel Regression Discontinuity hold. Pre-trends are parallel at the border for both electoral

and economic variables. In addition, the balance at the border in land distribution, electoral

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outcomes, geographic variables, and economic variables suggests that towns located just

inside the reform areas were similar to those just outside.

5 The Effects of the Reform

The section presents the main results of the paper. As a preliminary step, we show

that the reform did affect land distribution. We then show that the reform had a large and

significant impact on the electoral support for the Christian Democrats and the Communist

party, which persisted for four decades. Finally, we address several identification threats and

describe a number of robustness checks.

5.1 The Effect of the Reform on Farm Management

As a preliminary result, we show that the land reform did impact land distribution in

treated areas. The 1961 agricultural census reports how many farms and how many hectares

are managed directly by the owner of the farm (as opposed to tenants). This is a proxy for the

presence of smallholder agriculture (unfortunately, the 1961 agricultural census publication

does not report town-level data on farm size).

Table 2 shows the effect of the reform on the share of farms (panel A) and on the share

of land managed by the owner (panel B), using the RDD model in Equation 2. Columns 1,

3 and 5 report estimates using 25 km, 10 km, and 50 km bandwidths, respectively. Treated

towns have on average 10 to 11 percentage points more owner-operated farms, from a control

average of about 70 percent. The effect is significant and stable across bandwidths. Similarly,

in treated towns, the share of land in owner-operated farms is 11-13 percentage points higher

than in control towns, from a control average of 41-47 percent. Both sets of results are robust

when we control for the 1948 share of expropriable farms (columns 2, 4 and 6), which was

balanced between treatment and control (see Table 1-Panel A). Taken together, these results

point to a strong and significant impact of the reform on farm ownership.

How did the reform affect agricultural productivity? Unfortunately, the 1961 agricultural

census does not include town-level information on agricultural yields, value of production

or other measures of productivity. Section 6.4 suggests that, in any instance, changes in

agricultural productivity would be unlikely to drive the voting effects we discuss below.

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5.2 The Electoral Effect of the Reform

We now present our main results on the effect of the land reform on support for Christian

Democrats and Communists.

Preliminary graphical evidence. We start with graphical evidence of the disconti-

nuity at the border. Figure 2-Panel C shows the change in the average Christian Democrats

(DC) vote share from pre-reform elections (1946-48) to post-reform elections (1953-92) as a

function of the distance to the reform border. The graph highlights that in 1953-92 Christian

Democrats lost about 6 p.p. relative to their average in the elections of 1946 and 1948. DC

experienced smaller losses in towns that redistributed land: the discontinuity at the border

is large, and it indicates that reform towns cast about 4 p.p. more votes in favor of DC than

control towns.

Figure 2-Panel F repeats the exercise for the Communist party (PCI). On average, in

elections occurring after the reform, treated towns reduced votes for the Communists by

about 3.5 relative to control towns.

Panel RD estimates. Next, we estimate Equation (1) for elections 1946-92. Figure

3-Panel A reports point estimates and 95% confidence intervals for βt: the effect of the

land reform on DC vote shares in every election. The sample consists of 490 towns within

25 km from the reform border in the north. The baseline year is 1948, the last election

before the reform. The treatment coefficient in the 1946 election indicates that treated and

control towns at the border were on parallel pre-trends. The treatment coefficient in the

1953 election suggests that in treated towns Christian Democrats vote share increased by 4

percentage points during the first election after the land reform, from a control mean of 36.4%

(i.e., an 11 percent increase) . The effect is large and precisely estimated. Furthermore, the

gain remains large and stable for the next 40 years (between 1953 and 1992, the average DC

vote share in control towns ranges between 29% and 36%).

Figure 3-Panel B reports the point estimates of βt in Equation (1) with the share of votes

for the Italian Communist Party (PCI) as dependent variable. The figure illustrates that DC

gains match almost one-to-one PCI losses: between 1953 and 1992, the Communists received

about 3.5 p.p. fewer votes in treated towns relative to control towns on the other side of

the border (over this period, PCI vote share in control towns ranges between 29% and 40%).

The reform did not affect votes for the other 5 major Italian parties (Appendix Table D.1)

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nor voters’ turnout (Appendix Figure D.2.1).22

Table 3-Panel A presents results from the Panel RDD estimation where we pool together

all the post-reform elections. Table 3-Panel B presents regression estimates by decade. Col-

umn 1 looks at the effect of the reform on DC vote share and column 4 focuses on PCI vote

share. The other columns show results with alternative bandwidths of 10 km (columns 2

and 5) and 50 km (columns 3 and 6). Results are qualitatively similar across specifications,

though in the case of PCI they are estimated less precisely in the 10 km bandwidth.

While it is striking to observe a large effect already in 1953, the timing is plausible. Ex-

propriations in Maremma and Delta Padano were complete by the 27th January 1953, and

reform bodies assigned land immediately after (Russo, 1955). Thus, on the day of the 1953

elections, the process of redistribution was well-advanced and likely to be in the minds of

many voters. Indeed, our estimates of the impact of the reform on DC votes in the 1950s

are in line with a number of anecdotes and descriptive statistical evidence produced by re-

searchers at the time. Amintore Fanfani, one of the Christian Democratic leaders and then

Ministry of Agriculture, noted in 1956 that “in the reform areas, the Scudo Crociato [the

DC symbol: a crusader shield] shines while the hammer and sickle rust” (Ufficio centrale per

i problemi del lavoro della DC, 1956). An academic study of 1957 records the gains that

DC made in the elections following the reform (Toldo, 1957). In one dramatic episode, 220

PCI members who received land, publicly tore down their membership cards and joined the

Christian Democratic party (Il Mattino, 1951).

Persuasion rate. To assess the magnitude of the electoral effects, we follow DellaVigna

and Gentzkow (2010) and compute the persuasion rate of the reform. The persuasion rate

is the percentage of beneficiaries who start voting DC among the beneficiaries who were

not already voting for DC.23 We find a persuasion rate of 0.64: out of three people who

221992 elections are an exception. In 1992, there is a substantial decrease in turnout rate, possibly inresponse to early scandals about the major parties. This decrease was stronger in treated towns (marginallysignificant).

23For the persuasion rate p we adapt equation (1) of DellaVigna and Gentzkow (2010) to:

p =dcT − dcC

bT − bC· 1

1 − dc0.

In this equation, dcT and dcC are the DC vote share in treated and control towns, bT and bC are the shareof people who benefited from the reform in treated and control towns, and 1− dc0 is the share of people whowould not vote DC if there was no reform. We use the following numbers in our calculations: dcT−dcC = 0.04,the effect of the reform on DC vote share; dc0 = 0.43 the share of DC in control towns before the reform;bC = 0, the share of beneficiaries in control towns; bT = 0.11, the share of net beneficiaries in treated towns.The share of net beneficiaries in treated towns is equal to the number of households receiving land in the

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received land and were not already DC voters, two started voting for DC as a result of the

reform. The effect is large but plausible, given the magnitude of the asset transfer. We note

that positive spillover on non-beneciaries (e.g. on beneficiaries’ relatives or workers the new

owners hire) would imply a lower persuasion rate. In contrast, if envy and resentment among

non-beneficiaries living in treated towns lead them to stop voting for DC (a possibility we

discuss further in Section 5.4.1), this would imply a higher persuasion rate.

5.3 Electoral Support for the DC Agenda: the 1974 Divorce Ref-

erendum

Results so far document a persistent effect of the land reform on Christian Democrat vote

shares in the general elections. We next study whether voters in treated towns also support

the Christian Democratic policy agenda. A 1974 referendum gives us the opportunity to test

this hypothesis. In 1970, Law n.898 (the so-called Legge Fortuna-Baslini) introduced the

divorce in Italy. Shortly thereafter, Catholic groups promoted a referendum to repeal the

law. During a highly divisive campaign, Christian Democrats passionately sided with the

repeal, but ultimately lost by a margin of 3-to-2.

Using the panel RDD approach of Equation (1), we test whether support for the repeal

of divorce in the 1974 referendum was higher in treated towns. For comparability, we report

the effect of the reform on the 1974 referendum along with its effect on Parliament elections

by decade. Figure 4 shows that repeal received 2.6 percentage points more preferences in

treated towns, from an average of 36% in control towns. The effect is quantitatively sizable

and marginally significant (p-value=0.11). Appendix Table C.3 shows that the effect of the

reform on referendum voting to repeal divorce is positive at alternative bandwidths, and

stronger and more precisely estimated with a smaller bandwidth.

These results suggest that voters in treated towns offer greater support to both Christian

Democrat candidates and Christian Democrat political agenda. Importantly, because the

1974 referendum asked about a family policy, the greater support in treated town is unlikely to

derive from economic conservatism among the new land-owners that the reform had created.

We further elaborate on this point in Section 6.3.

To sum up, the analysis suggests large electoral gains for the Christian Democrats, the

incumbent party that implemented the land reform. These gains are large and persistent over

average reform town (244) minus the average number of landlords expropriated (7). We assume that everyhousehold casts three votes, so that the average town has (244 − 7) × 3 = 579 net beneficiaries. 6500 voterslive in the average town, so net beneficiaries over voters is about 0.11.

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forty years, and appear also in a family policy referendum where DC took a clear stance.

While the short-term effects are in line with observations of contemporary commentators,

the longer-term impact is more surprising. In Section 6, we shed light on the dynamics of

this persistence.

5.4 Threats to Identification

We now consider two possible threats to identification: violations of the SUTVA and

differential migration from treated towns.

5.4.1 Violations of the SUTVA

Higher vote shares for DC in the reform areas may indicate stronger support among the

voters of treated towns: this is our preferred interpretation. However, the reform may also

create resentment in control towns, thus causing a reduction in DC support there. This would

violate SUTVA and threaten our identification.24 We propose three approaches to mitigate

this concern.

Heterogeneity by share of agricultural workers. If resentment were a factor, the

reduction in support for the Christian Democrats would likely be higher in towns with a

higher share of agricultural workers, as these workers would have higher benefits from the

reform. To test this hypothesis, we study heterogeneity by the pre-reform share of agricultural

workers:25

yirt =ηi + ηrt + β · Postt × Ti+

+ γ · Postt ×LaiLi

+ δ · Postt ×LaL i

× Ti+

+ α0 · Postt × di + δ0 · Postt ×LaL i

× di+

+ α1 · Postt × di × Ti + δ1 · Postt ×LaL i

× di × Ti + uirt

(3)

In Equation (3), Postt is a dummy equal to 1 in every election after 1950 and (Lai /Li)i is

the share of workers employed in agriculture in 1951. If resented potential beneficiaries in

24The reform would also affect outcomes in control towns mechanically if some of the beneficiaries of theland reform came from control areas. This type of spillover is not a concern because in practice almost allbeneficiaries were resident of treated towns (Dickinson, 1954, Rossi-Doria, 1958, Marciani, 1966)

25We include towns in a 25 Km bandwidth. We performed the same exercise with a simpler difference-in-difference specification, which requires less power than the Panel RDD. Results are virtually identical andare available upon request.

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control towns punished DC, we would expect γ to be negative.

Table D.3-Column 1 reports the baseline result without heterogeneity. We compare pre-

reform elections (1946, 48) with the first two elections after the reform (1953, 58). The DC

vote share increases differentially by 4 percentage points in treated towns. Column 2 then

shows that, in control towns, places with high and low share of agricultural workers showed

similar support for DC after the reform (if anything, support for DC is higher in towns with

more agricultural workers: γ=0.015, s.e=0.34).26 Similarly, for PCI none of the interactions

is significant (Column 5). These estimates support our interpretation of the main results: the

increase in support for DC in treated towns, as opposed to the reduction in control towns,

drives the panel RDD estimates.

Heterogeneity by exposure to the reform. Second, we explore a different source of

heterogeneity. If resentment were driving our results, we would expect a higher reduction in

DC vote share in those control towns where the reform is very visible. We proxy visibility

with the portion of the town border that overlaps with the reform area. For this exercise, we

restrict the sample to those towns with at least a portion of their town limit on the border of

the reform areas. Table D.3-Column 3 reports the estimates of a modified version of Equa-

tion (3), where we interact Postt and Ti with the share of the town limits located on the

reform border (BTi /Bi). The positive and insignificant coefficient on the interaction between

Postt and BTi /Bi suggests that control towns where the reform was more visible did not vote

against DC after the reform. Similarly, the negative and insignificant coefficient of the same

interaction when the dependent variable is PCI vote share speaks against greater gains of

the Communists in these towns (Column 6). Overall, these regressions suggest again that

resentment in control towns is unlikely to drive our main results.

Donut Panel RDD. In the last exercise of this section, we estimate Equation (1), but

drop towns close to the reform border.27 Similar to the previous exercise, if voters in control

towns resented the reform and punished DC after 1950, we expect this effect to be larger

close to the border, where voters were likely to be more aware of the reform. If this were true,

dropping towns close to the border should shrink the estimated effect of the reform, because

it would remove those towns where punishment against DC was stronger. In contrast, if

26In addition, in treatment areas, towns with a strong presence of agricultural workers experience adifferential increase in the electoral support for DC, though this is not significant (δ=0.077, s.e.=0.084).

27This exercise is reminiscent of the “donut-RD” proposed by Barreca et al. (2016) to address problemsof bunching in RDDs. We use it instead to provide additional evidence supporting SUTVA.

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the coefficient remains stable after dropping towns close to the border, it would be evidence

that this mechanism is not important. Table D.4-Column 1 reports our baseline results:

this is the increase in the support for DC after 1950 in treated towns within 25 km from

the border. In Columns 2 through 4 of Table D.4, we estimate the same regressions after

dropping towns that are within 1.5, 2.5 and 5 km from the border. Across these samples,

the point estimate remains stable. Columns 5 through 8 show that also the impact of the

reform on the Communist party is robust to dropping towns close to the border. These

results suggest again that resentment against DC in control towns closely exposed to the

reform does not drive our results.

5.4.2 Migration

The reform may also impact migration from or to reform areas. Here we present several

pieces of evidence that suggest that migration is unlikely to drive our results.

Changes in Population. The reform may affect political outcomes through permanent

changes to the population. We explore this channel in the analysis below. First, we estimate

(1) with the log of the number of eligible voters as dependent variable.28 Appendix Figure

D.7.1-Panel A shows the estimated βt. While none of these coefficients is significant, they

suggest that treatment tows experienced higher (though insignificant) out-migration in the

decades following the reform. Importantly, the magnitude of the coefficient is small right

after the reform and then grows over time.29

Population Composition. Second, we test for differential changes in the composition

of the population in treatment areas by looking at a number of characteristics of the pop-

ulation from decadal censuses.30 Appendix Table D.5 presents the results. The reform had

no significant impact on the share of workers employed in agriculture and manufacturing

(columns 1 and 2), on the labor force participation (column 3), on the share of male in the

population (column 4), and on the age structure of the population (columns 5-8). This sug-

gests that observed out-migration was homogenous across groups, and it did not draw more

people from any specific sub-population (based on observables).

28Results with log of total population from the census or with an estimated measure of net migration arequantitatively similar and available upon request.

29These results are consistent with recent work by Galan (2018) who finds that rural workers who receivedland in Colombia were more likely to send their children to study in the city.

30When the dependent variable comes from the decadal censuses we estimate the effect relative to the1951 census. This census was taken before land expropriations started and captures population characteristicsbefore the reform.

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Discussion. Migration is unlikely to explain our main electoral results for several rea-

sons. First, and most importantly, the pattern of treatment effects on population changes

does not match those on electoral results: the overall pattern uncovered in Figure D.7.1-

Panel A suggests that differential out-migration was small right after the reform, and then

it grew over the following decades. In contrast, Figure 3 shows that support for the Chris-

tian Democrats in treated towns increased sharply immediately after the reform, and then

remained stable over the following forty years.

Second, Figure D.7.1-Panel B reports the βt of equation (1) when the dependent variable

is the log of the absolute number of DC votes. In 1953 and 1958, the absolute number of

DC votes increased by 6 to 7 log-points (p-value = 0.03 for 1953 and 0.16 for 1958). This

suggests that the potential flow of non-DC supporters out of treated towns would not be

sufficient to explain the results.

Third, since the number of people who applied for land was substantially larger than the

number of land parcels, the vast majority of beneficiaries were previous resident of treatment

towns (Dickinson, 1954, Rossi-Doria, 1958). For this reason, it is unlikely that the reform

attracted new DC supporters from control towns. While we cannot observe individual polit-

ical preferences, the lack of changes in population composition (by employment sector, age,

or gender) is consistent with this interpretation.

5.5 Robustness

We have already shown that our results are robust to alternative bandwidths (Table 3).

Here, we show that they are also robust to a battery of other tests.

Alternative Specifications. In Appendix Table C.2, we experiment with different

specifications. Columns 1-4 report results for DC vote share, columns 5-8 results for PCI

vote shares. In columns 1 and 5 we include province × decade fixed effects; in columns 2 and

6 we drop provincial seats from the sample; in columns 3 and 7 we control for a 2nd order

polynomial in distance interacted with decades; in columns 4 and 8 we estimate a flexible

polynomial in latitude and longitude interacted with decades (as in Dell, 2010). Results

from these specifications are similar to our baseline, although the effect on PCI vote shares

becomes insignificant when we add the second order polynomial.

Finally, we split the reform border into 10 segments and assign every town to one of these

segments (Appendix Figure C.4.1). We then estimate the effect of the reform after dropping

towns close to each of these 10 segments. Figure C.4.2 presents the results for DC (Panel A)

and for PCI (Panel B): p-values range from 0.002 to 0.101 for DC and from 0.008 to 0.143

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for PCI.

Placebo Borders. Appendix Figure C.6.1 presents the results of the following exper-

iment. We simulate 20 fictitious reforms, by moving the reform border inside and outside

the reform area in steps of 2.5 km. For each of these fictitious reforms, we estimate a single

coefficient for the impact of the reform on the DC vote share. In Figure C.6.1 -Panel A we

plot the 20 coefficients of these regressions (on the y-axis) against the location of the ficti-

tious border (on the x-axis). In the same graph we also report the real coefficient, obtained

when we use the actual border of the reform (in red). In Figure C.6.1-Panel B, we repeat

the exercise but plot the t-statistics of our coefficients. The figure shows that the t-statistics

estimated on the real border is higher than every other t estimated on fictitious borders. The

β of the real border is the second highest, with the highest β estimated on a fictitious border

located 22.5 km to the inside of the reform border. In Figure C.6.2, we repeat the same

exercise estimating the impact of the reform on the Communists vote share. The (negative)

coefficients and the t-statistics estimated with the real border of the reform are below any

of the statistics estimated with the placebo borders. This exercise can be seen as a form of

non-parametric evidence (in the spirit of randomization inference), and its results should not

be affected by the special form of correlation of error terms. Taken together, these results

show that the actual border of the reform is the only source of discontinuity in the sample

we consider.

Spatial Standard Errors. Appendix Table C.4 reports results with standard errors

robust to spatial correlation (Conley, 1999). In this exercise, we allow errors to have any

correlation overtime. In addition, we allow non-zero spatial correlation across towns, and

assume that spatial correlation decays linearly until a cutoff. We experiment with different

cutoffs, and report standard errors and significance on Appendix Table C.4. If anything,

correcting spatial correlation increases the significance of the results of our treatment variable.

6 Explaining the Long-Term Electoral Effect

This section explores several mechanisms that could drive the persistence of the electoral

impact of the land reform. We focus on five possible explanations: voters’ long memory

of the reform; repeated exchange between the incumbent party and the voters; changes in

voters’ beliefs and attitudes; political consequences of productivity changes due to the reform;

mechanical persistence arising from the correlation in voting across years. We argue that long-

term memory may have played a role, but that repeated investment of DC in treated towns

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through fiscal transfers and public sector employment was important to maintain political

support after the reform.31 We find little empirical support for other explanations.

6.1 Voters’ Long Memory

Voters may remember the reform and its benefits for a long time and, as a result, continue

supporting DC for several decades. There is indeed evidence of vivid memory of the reform

even many years after its implementation (e.g. Zucco et al., 2011). While long-term memory

of the reform is a plausible explanation for some of the persistence (Voigtlander and Voth,

2012), a few elements suggest it is unlikely to explain the stability in the treatment coeffi-

cients over four decades. First, a large literature documents voters’ short memory and the

temporary nature of electoral benefits of public policies. Evidence from Germany (Bechtel

and Hainmueller, 2011), Brazil (Zucco Jr, 2013), Mexico (Dıaz-Cayeros, 2009), the United

States (Achen and Bartels, 2004) as well as cross-country analysis (Duch and Stevenson,

2006) indicates that voters forget quickly the politicians who passed these reforms. Second,

during the four decades following the land reform, population in treated towns grew on av-

erage by 46%, and many of the original beneficiaries died. Third, during the same period,

the share of workers employed in agriculture fell from 65% to 18% (Figure D.3.1-Panel A).

Thus, while we acknowledge that long-term memory may motivate some voters even in the

early 1990s, we believe that the stability of the treatment effect requires some additional

explanation.

6.2 Repeated Exchange

We next explore whether the reform initiated a system of repeated exchange between vot-

ers and DC politicians. During the process of land redistribution, DC could favor its (new)

supporters by allocating land to them, as we described in Section 2. In addition, Coldiretti,

the association of small landowners close to DC, managed credit and health insurance pro-

vision. Coldiretti also guided its members to support the association’s leaders who were

running as MP candidates. Coldiretti was important to organize support for DC in the 1950s

and 1960s, but its influence waned overtime.32

31While historians, sociologists and political scientists have long studied DC (Galli, 2007; Marzano, 1996;Giovagnoli, 1996), we are not aware of any economic research attempting to explain their dominance em-pirically. However, our paper is related to the empirical literature on Italian political economy (see, amongothers, Buonanno et al., 2017, Fontana et al., 2018 and Durante et al., 2017).

32The official newspaper of Coldiretti, “Il Coltivatore” published explicit endorsements to these candidates.Cf. Il Coltivatore (1953) for the 1953 elections and Il Coltivatore (1958) for the 1958 elections. Once in the

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After the redistribution of land, when the electoral effects of the reform potentially started

to wane, DC governments continued to invest more in treated towns to maintain the political

advantage. This exchange built on the initial support created by the reform. We look at two

forms of political investment: fiscal transfers and public sector employment.

Fiscal Transfers. Transfers from central to local governments are key for public good

provision and political competition. The Italian government started financing local public

goods through grants to municipalities in the late forties (Giarda, 2000). Theory suggests that

such transfers can respond to political incentives (Grossman, 1994): an intuition confirmed

for many countries (Levitt and Snyder Jr, 1995; Brollo and Nannicini, 2012), including Italy

(Alesina et al., 1995).

Using the panel RDD of Equation (1), we test whether reform towns receive more fiscal

transfers from the central government. For this purpose, we use new data on town-level fiscal

transfers from municipal balance sheets. Every year, each Italian town has to return to the

Ministry of the Interior a complete balance sheet. The Italian National Institute of Statistics

published the balance sheets of all Italian towns for the years 1952, 1955 and 1959, which we

digitized.33

RDD analysis shows that treated and control towns had similar level of (log) municipal

transfers per capita in 1952 (β = −0.14, s.e.=0.13). Figure 5-Panel A also shows that the

reform had no impact on transfers in 1955, around the end of the land reform, and 2 years

after the first post-reform Parliament had taken office. These results suggest that treated

towns did not receive transfers differentially during the implementation of the reform. In

contrast, in 1959, we find a sizable and marginally significant difference between treatment

and control towns, (β = 0.27, s.e.=0.116, p-value = 0.097). This result points to additional

Christian Democrat investments in treated towns after the land reform was completed.

Public Sector Employment. Governments’ patronage in public sector employment is

common everywhere (Grindle, 2012). The practice was widespread in post-war Italy, where

governments routinely appointed political supporters to public offices (Ferrera, 1996, Golden,

2003, Alesina et al., 2001). This evidence suggests that public sector employment could be

another strategy to court voters in reform areas, once the land reform is over. We test this

idea estimating Equation (1) with the share of public sector workers as dependent variable.

Figure 5-Panel B presents the results. In treated towns, the share of public sector employ-

Parliament, Coldiretti MPs organized themselves through the group “Amici della Coldiretti”. In 1953 thisgroup counted 57 MPs and 41 Senators: 10.4% of the Parliament. By 1992, the group had shrank to 13 MPsand 8 Senators: only 2.2% (La Navicella, 2000).

33The publication was discontinued after 1959.

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ment was not significantly different at the time of the reform (β = −0.01, s.e.=0.01). Treated

towns experience a differential increase in public sector employment in each of the decades fol-

lowing the reform, though the coefficients are only significant in 1961 (β = 0.007, s.e.=0.004,

p-value=0.05) and 1981 (β = 0.02, s.e.=0.01, p-value=0.04). In 1981, the year with the

highest coefficient, the treatment effect is one-third of the average in control towns. When

we pool the post-reform data, the treatment coefficient is 0.009 (s.e.=0.005, p-value=0.11).

The results are consistent with the idea that Christian Democrats hired more public servants

in treated towns to reward their voters, though the noise in some of the estimates grants

some caution.

Discussion. The evidence in this section suggests that Christian Democrats contin-

ued investing in land reform towns over the four decades during which they governed Italy.

Continued investment may have enabled the incumbent party to maintain voters’ support,

as part of a repeated exchange between Christian Democrats and voters. This explanation

suggests complementarity between the initial investment (the land reform) and subsequent

investments (fiscal transfers and public sector employment).

The evidence of this section also clarifies that our results on the persistent impact of

the reform should be interpreted as reduced form estimates. The political investments the

DC made after the reform may have helped maintain its electoral advantage. The repeated

exchange logic helps explain why DC would continue investing in treated towns after the

reform. Importantly, we do not aim to separately identify the “direct” electoral effect of the

land reform and the “indirect” effects of the subsequent investments.

This explanation emphasizes the role of representatives (e.g. local MPs) in the national

government in promoting the interest of (some) voters in their constituencies. Other papers

have instead emphasized the role of local administration in capturing resources distributed

from the central government, and in particular the role of mayors aligned with the government

(Brollo and Nannicini, 2012). To test whether this channel played a role in our setting, we

compiled a new database with the list of mayors at the time of the reform. We study

heterogeneity in the local transfer results, and ask whether treated towns with DC mayors

received greater fiscal transfers in the 1950s. Appendix Figure D.3.2 shows that the impact

of the reform on electoral outcomes and fiscal transfers did not vary by mayor’s alignment

with the government coalition. The lack of heterogeneity by mayor’s affiliation confirms that

MPs, rather than local administrators, drove the long-term voting impact of the reform. This

is consistent with extensive evidence that Italian MPs promoted fiscal transfers and public

employment in their constituency to secure re-election (Bracalini, 2016).

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6.3 Economic Conservatism

We now turn to a different channel of persistence: economic conservatism. Evidence from

other countries shows that wealthier voters become economically conservative (Di Tella et al.,

2007), endorsing parties that promote free markets and oppose redistribution (De Janvry

et al., 2014). This phenomenon may offer another plausible explanation to the persistent

effect of the reform, because beneficiaries of the land redistribution became richer than control

farmers who did not receive land. Both the original beneficiaries and their children may then

be more conservative than families on the other side of the border simply because they had

more wealth. However, economic conservatism cannot explain why in treated towns voters

support DC agenda on family policies in the 1974 divorce referendum. In this section, we

present two additional pieces of evidence that speak against this interpretation.

Home ownership. First, the premise of the economic conservatism argument is that

voters are richer in treated than in control towns. We look at relative wealth of towns at the

border using the home-ownership rate: we estimate Equation (1) with home-ownership as

dependent variable.34 Table 4 reports results for three different bandwidths. The treatment

coefficients in the five decades following the reform are small and never significant. This

evidence speaks against greater wealth of treated towns.

Support for Forza Italia. Second, the crisis of the Italian political system in the early

Nineties provides us with an opportunity to test whether treated towns differentially sup-

port right-of-center parties other than the Christian Democrats. Between 1946 and 1994 the

Christian Democrats were the only major right-of-center party.35 Thus, for this period, it

is not possible to disentangle support for DC from more general support for economically

conservative parties. The crisis in the Nineties led to the break-up of the Christian Demo-

cratic party, and ushered in power Berlusconi, the leader of the newly founded Forza Italia,

which campaigned on a strong pro-market and low-tax platform. Christian Democrats split

in several smaller parties, representing the various factions of the former DC.

If richer voters in treated towns favor more conservative policies regardless of whether

DC implemented them or not, we would expect greater support for Berlusconi. We test this

idea with the RDD model and data on Berlusconi’s party vote shares in the elections of 1994,

1996 and 2001. Table 5 reports the treatment coefficient on Forza Italia vote share in the

sample of towns 25 Km from the border. Treatment coefficients are small and insignificant

in each election year. Moreover, controlling for the Christian Democrat vote share in 1948

34Real estate is the most common form of investment for Italian households (Rossi, 2019).35The Italian Liberal Party (PLI) received on average 3.6% of the votes between 1946 and 1992.

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has no effect on point estimates (columns 2, 4 and 6). This evidence is thus inconsistent with

persistent right-wing attitudes in treated towns.36

To sum up, economic conservatism is unlikely to explain the persistence of our results for

three reasons. First, this mechanism can not explain the support for the DC family policy

agenda during the 1974 referendum. Second, available data does not suggest that treated

towns became richer. Third, support for Christian Democrats did not translate in support

for the next right-wing party after 1994.

6.4 Agricultural productivity

Another way the land reform may have political consequences is through its impact on

agricultural productivity. For instance, land redistribution may have promoted an expansion

of the agricultural sector, and farmers may have rewarded the government responsible for the

expansion. This would be consistent with evidence showing that voters use policies to infer

the quality of politicians (Manacorda et al., 2011). Unfortunately, we lack data to estimate

agricultural productivity and are thus unable to test this mechanism formally. However, two

observations suggest that agricultural productivity had a marginal role.

First, expropriations in Maremma and Delta Padano were completed only in January

1953, six months before the 1953 national elections. Thus, the first elections after the reform

took place right after reform bodies had assigned land to beneficiaries, and before these

beneficiaries collected their first harvest. The timing implies that productivity effects of the

reform cannot explain its large impact on the 1953 elections (see Figure 3).

Second, if the electoral impact of the reform was driven by its impact on agricultural

productivity, we would expect it to fade overtime, as the agricultural sector lost importance

during the second half of the twentieth century. This is not what we find, as the effect of the

reform remains stable until 1992. Overall, while we cannot rule out that the reform had an

effect on agricultural productivity, we believe that this effect is unlikely to drive the electoral

response to the reform.

36We also study support for the new Christian Democrat parties that were founded after the split of DCin 1993. Appendix Figure D.4.1 shows that, in elections between 1992 and 2001, these parties do not havesignificantly higher vote share in treated towns. However, measurement issues and large confidence intervalsshould make one careful when interpreting these results. For instance, in several elections (e.g. 1994 and1996), former Christian Democrat politicians ran in the lists of major center-right or center-left parties. Thus,we cannot observe vote shares for these Christian Democrat parties separately from the other parties.

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6.5 Mechanical Persistence

Finally, the initial electoral effect of the reform may persist simply because town-level

vote shares are highly correlated over time. However, since this correlation is less than one,

such mechanical persistence would predict that the effect should fade over time. Figure

D.3.1-Panel B presents correlation in vote shares across each pair of elections in our sample,

and suggests that mechanical persistence of electoral preferences is unlikely to explain the

stable effect of the reform over 40 years. For instance, the town-level correlation of voting

results between the 1953 and the 1992 elections is only about 25%.

7 Conclusions

In this paper, we study the electoral impact of the Italian land reform, which redistributed

land within well-defined reform areas. We identify the causal effect of the reform with a panel

spatial regression discontinuity, and compare treated towns just inside the reform border

with control towns just outside of it. We find that the party that promoted the reform, the

Christian Democrats, gains 4 percentage points in treated towns after the reform. The gains

persist for over 40 years.

We explore several mechanisms for the persistence, including long-term memory, changes

in voters’ beliefs, and mechanical correlation in voting over time. We provide evidence that

the land reform initiated a repeated exchange between DC and voters in treated towns.

DC invested in treated towns after the reform implementation ends, through larger fiscal

transfers and higher employment in the public sector. For their part, voters in treated towns

also support Christian Democrats’ policy agenda (i.e. in a divisive family policy referendum),

as well as their candidates.

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Figures

Figure 1: Reform Areas and Buffers

Notes: Panel A: land reform areas as defined in the 1951 Law. In dark red the areas of Delta Padano (north-east) and Maremma

(center-west). In light brown the areas of Fucino (centre), Opera Combattenti (south-west), Puglia and Lucania (south-east), Sila (south). In

pink the islands of Sicily and Sardinia. Panel B: 25 km buffers inside and outside the border of Delta Padano and Maremma.

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Figure 2: Balance, pre-trends and effect of reform: graphical evidence

25%

30%

35%

40%

45%

-30 -20 -10 0 10 20 30Distance from border

A. 1948: DC vote share

9%

10%

11%

12%

13%

14%

-30 -20 -10 0 10 20 30Distance from border

B. 1946-48: change DC share

-8%

-6%

-4%

-2%

0%

-30 -20 -10 0 10 20 30Distance from border

C. pre-post 1951: change DC share

35%

40%

45%

50%

-30 -20 -10 0 10 20 30Distance from border

D. 1948: PCI vote share

10%

15%

20%

25%

-30 -20 -10 0 10 20 30Distance from border

E. 1946-48: change PCI share

-12%

-10%

-8%

-6%

-4%

-30 -20 -10 0 10 20 30Distance from border

F. pre-post 1951: change PCI share

Notes: The Figure presents graphical evidence on the panel RDD. On the y-axes we plot electoral outcomes; on the x-axes the distance to the border. In each

panel, we bin data in 4 km intervals. Treated towns have positive distance and control towns have negative distance. The red lines report linear fits from regressions of

the outcome on the distance from the border (separately for the two sides of the discontinuity). Panel A: dependent variable is Christian Democrats (DC) vote share in

1948 (the last election before the land reform). Panel B: dependent variable is change in DC vote share between the 1946 and 1948 (the two elections before the land

reform). Panel C: dependent variable is change in DC vote share between pre- (1946-48) and post-reform elections (1956-92). Panels D-F: repeat the analysis for the

Communist Party (PCI). For PCI we use the vote share of the Popular Democratic Front (FDP) in 1948 and the vote share for the Democratic Party of the Left (PDS)

in 1992. Electoral data are from Corbetta and Piretti (2009). The sample consists of all towns within 32 Km from the reform borders of Delta Padano and Maremma.

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Figure 3: The Electoral Impact of the Reform: Panel Regression Discontinuity Results 1946-92

-5%

0%

+5%

+10%

1946

1948

1953

1958

1963

1968

1972

1976

1979

1983

1987

1992

Election year

A. Treatment effect on DC vote share

-8%

-6%

-4%

-2%

0%

+2%

1946

1948

1953

1958

1963

1968

1972

1976

1979

1983

1987

1992

Election year

B. Treatment effect on PCI vote share

Notes: The Panels display coefficients βt from the panel RDD Equation (1), which controls for year × reform area and town fixed effects.

The omitted category is the β of 1948. Panel A: dependent variable is Christian Democrat (DC) vote share. Panel B: dependent variable is

Communists (PCI) vote share. For PCI we use the vote share of the Popular Democratic Front (FDP) in 1948 and the vote share for the

Democratic Party of the Left (PDS) in 1992. Electoral data are from Corbetta and Piretti (2009). Units of observation are town-years. The

sample consists of all towns within 25 Km from the reform borders of Delta Padano and Maremma. The vertical lines mark the 1951 land

reform. We estimate standard errors clustered at the town level and plot 95% confidence intervals as bars around the coefficients.

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Figure 4: 1974 Referendum on the Repeal of Divorce

-2%

0%

+2%

+4%

+6%

+8%

1940

s

1950

s

1960

s

1970

s19

74

1980

s

DC vote share Divorce referendum

Effect of reform on:

Notes: The Figure displays coefficients βt from the panel RDD Equation (1), which controls for year × reform area and town fixed effects.

We estimate β for separate decades as well as for the 1974 divorce referendum. The omitted category is the β of the elections of 1946 and 1948.

We include the 1992 election in the 1980s decade. The dependent variable is Christian Democrat (DC) vote share in every year except 1974;

the source is Corbetta and Piretti (2009). In these years, we plot the β in black. In 1974 dependent variable is share of “yes” votes in the

divorce referendum; the source is Ministero dell’Interno (1977). In this year, we plot the coefficient in blue. Units of observation are town-years.

The sample consists of all towns within 25 Km from the reform borders of Delta Padano and Maremma. The vertical lines mark the 1951 land

reform. We estimate standard errors clustered at the town level and plot 95% confidence intervals as bars around the coefficients.

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Figure 5: Fiscal Transfers and Public Sector Employment

-0.2

0.0

0.2

0.4

0.6

1950 1955 1960Year

A. Effect on per capita municipal transfers

-0.01

0.00

0.01

0.02

0.03

0.04

1936 1951 1961 1971 1981 1991Year

B. Effect on public sector employment share

Notes: The Panels display coefficients βt from the panel RDD Equation (1), which controls for year × reform area and town fixed effects.

Panel A: the omitted category is the β of 1952 and the dependent variable is logarithm of per capita fiscal transfers from the central government

to the municipal governments (available only for 1952, 1955 and 1959). Sources of municipal transfers are ISTAT (1955b), ISTAT (1957) and

ISTAT (1962b); source of 1951 population is ISTAT (1955a). Panel B: the omitted category is the β of 1951 and the dependent variable is share

of public sector workers. Source is the decadal population censuses (ISTAT, 1937, 1955a, 1965, 1974, 1985, 1995, 2005). The sample consists

of all towns within 25 Km from the reform borders of Delta Padano and Maremma. The green vertical lines mark the 1951 land reform. In

Panel A, the grey vertical line marks the year in which the first post-reform Parliament took office. We estimate standard errors clustered at

the town level and plot 95% confidence intervals as bars around the coefficients.

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Tables

Table 1: Balance and Pre-Trends at the Border

Preferred Bandwidth Alternative Bandwidths

< 25km (N=490) < 10km (N=222) < 50km (N=863)

Control β [s.e] Control β [s.e] Control β [s.e]

mean mean mean

A: Balance Land Distribution 1948

Share of Expropriable Estates 1948 0.028 0.002 [0.010] 0.029 -0.037 [0.024] 0.025 -0.010 [0.010]

B: Balance Vote Shares 1946 & 1948

Christian Democrats (DC) 1946 0.310 -0.025 [0.025] 0.295 -0.012 [0.040] 0.330 -0.010 [0.022]

Christian Democrats (DC) 1948 0.431 -0.028 [0.028] 0.411 0.019 [0.042] 0.454 -0.015 [0.024]

Communists (PCI) 1946 0.243 0.021 [0.031] 0.259 0.002 [0.052] 0.235 0.009 [0.026]

Communists (PCI) 1948 0.408 0.035 [0.034] 0.425 -0.010 [0.053] 0.387 0.019 [0.029]

C: Balance Geography and Census 1951

Distance from the Coast 44.12 0.969 [2.761] 37.04 5.531 [4.282] 49.64 -4.571** [2.269]

Distance from Rome 184.3 13.63 [13.03] 165.1 -2.344 [20.90] 226.2 10.02 [10.43]

Area (miles2) 18.03 0.337 [6.293] 21.19 -5.384 [6.735] 18.58 3.879 [5.362]

Slope 1.530 -0.020 [0.167] 1.345 0.226 [0.236] 1.575 -0.116 [0.143]

Elevation 225.4 27.67 [30.28] 203.3 27.26 [42.02] 224.9 29.30 [24.82]

Wheat Suitability 4.432 -0.046 [0.054] 4.506 -0.009 [0.085] 4.378 -0.009 [0.043]

Maize Suitability 6.193 -0.187 [0.138] 6.107 0.026 [0.223] 6.392 -0.177 [0.112]

Malaria (1932) 0.497 0.029 [0.088] 0.529 -0.113 [0.150] 0.372 0.016 [0.072]

Log Population 8.360 -0.226 [0.161] 8.438 -0.449* [0.240] 8.454 -0.065 [0.144]

Share Active Population 0.530 -0.009 [0.013] 0.540 -0.022 [0.018] 0.523 -0.003 [0.010]

Share Agricultural Workers 0.645 0.005 [0.034] 0.669 0.025 [0.049] 0.627 0.030 [0.027]

Share Manufacturing Workers 0.144 0.019 [0.021] 0.122 -0.013 [0.029] 0.155 -0.002 [0.016]

Share Public Sector Workers 0.052 -0.010 [0.007] 0.055 -0.011 [0.008] 0.049 -0.008 [0.005]

D: Pre-Trends Vote Shares 1948-46

Christian Democrats (DC) 0.122 -0.003 [0.015] 0.116 0.031 [0.024] 0.123 -0.005 [0.012]

Communists (PCI) 0.165 0.014 [0.019] 0.166 -0.012 [0.033] 0.152 0.010 [0.016]]

E: Pre-Trends Census 1951-36

Log Population 0.075 -0.021 [0.023] 0.097 -0.030 [0.030] 0.065 0.008 [0.017]

Log Workers 0.053 -0.024 [0.031] 0.081 -0.083* [0.049] 0.038 0.012 [0.025]

Share Active Population 0.080 -0.006 [0.013] 0.083 -0.028 [0.021] 0.077 0.001 [0.010]

Share Agricultural Workers -0.068 -0.016 [0.015] -0.067 -0.016 [0.022] -0.082 -0.019 [0.012]

Share Manufacturing Workers -0.026 0.011 [0.010] -0.025 0.003 [0.014] -0.023 0.018** [0.008]

Share Public Sector Workers 0.025 -0.005 [0.004] 0.028 -0.004 [0.007] 0.024 -0.002 [0.004]

Notes: The columns beneath β report the coefficient of separate regressions of the RDD specification in Equation (2). Dependent variables

are specified on the first column, and their average in control towns is reported in the columns beneath “Control mean”. Refer to Appendix B for

a detailed description of each of these variables and their sources. Units of observation are towns. The sample consists of all towns close to the

reform borders of Delta Padano and Maremma. We report estimates for the preferred bandwidth (25 Km) and two alternative bandwidths (10

Km and 50 Km). In Panel A, the sample is approximately 17% smaller due to missing data in Medici (1948). The columns beneath “[s.e.]” report

heteroschedastic robust standard errors. *p<0.1, **p<0.05, ***p<0.01.

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Table 2: The impact of the reform on farm management.

Preferred Bandwidth Alternative Bandwidths

< 25km < 10km < 50km

(1) (2) (3) (4) (5) (6)

A. Share of Farms Managed by the Farm Owner

Treatment 0.100∗∗∗ 0.097∗∗∗ 0.112∗∗ 0.068 0.101∗∗∗ 0.086∗∗∗

[0.032] [0.031] [0.052] [0.054] [0.025] [0.028]

Mean Y control towns 0.722 0.722 0.713 0.713 0.716 0.716

B. Share of Land Managed by the Farm Owner

Treatment 0.125∗∗∗ 0.118∗∗∗ 0.133∗∗ 0.078 0.112∗∗∗ 0.083∗∗

[0.038] [0.036] [0.062] [0.060] [0.031] [0.032]

Mean Y control towns 0.440 0.440 0.410 0.410 0.467 0.467

1948 Land Distribution Control No Yes No Yes No Yes

Observations 489 489 222 222 859 859

Notes: The Table reports coefficients β of separate regressions of the RDD specification in Equation (2). Panel A:

dependent variable is share of farm managed by the farms owner in 1961. Panel B: dependent variable is the share of land

managed by the farm owner in 1961. Columns 2, 4 and 6 control for 1948 share of expropriable estates. Source of 1961 farm

management is ISTAT (1962a); source of 1948 share of expropriable estates is Medici (1948). The publication of the 1961

agricultural census does not report land distribution. Units of observation are towns. The sample consists of all towns close

to the reform borders of Delta Padano and Maremma. We report estimates for the preferred bandwidth (25 Km) and two

alternative bandwidths (10 Km and 50 Km). Heteroschedastic robust standard errors in parentheses. *p<0.1, **p<0.05,

***p<0.01.

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Table 3: The electoral impact of the land reform.

Christian Democrats Communist Party

Preferred Alternative Preferred Alternative

Bandwidth Bandwidths Bandwidth Bandwidths

< 25km < 10km < 50km < 25km < 10km < 50km

(1) (2) (3) (4) (5) (6)

Panel A: Pooled Results

Treatment × Post 0.044∗∗∗ 0.052∗∗ 0.035∗∗∗ -0.031∗∗ -0.013 -0.024∗

[0.015] [0.025] [0.012] [0.015] [0.026] [0.013]

Panel B: Results by Decade

Treatment × 1950s 0.041∗∗∗ 0.045∗ 0.031∗∗∗ -0.032∗∗ -0.005 -0.020∗

[0.013] [0.024] [0.011] [0.013] [0.022] [0.011]

Treatment × 1960s 0.037∗∗ 0.053∗ 0.028∗∗ -0.036∗∗ -0.019 -0.032∗∗

[0.016] [0.027] [0.013] [0.015] [0.026] [0.013]

Treatment × 1970s 0.047∗∗∗ 0.061∗∗ 0.037∗∗∗ -0.034∗∗ -0.018 -0.028∗∗

[0.016] [0.025] [0.013] [0.016] [0.028] [0.014]

Treatment × 1980s 0.048∗∗∗ 0.046 0.041∗∗∗ -0.024 -0.008 -0.017

[0.018] [0.028] [0.015] [0.019] [0.032] [0.015]

Mean Y Control Group 0.36 0.34 0.38 0.33 0.34 0.31

Number of Towns 490 222 863 490 222 863

Observations 5838 2651 10233 5838 2651 10233

Notes: The Table reports coefficients βt from the panel RDD Equation (1), which controls for year ×reform area and town fixed effects. Panel A reports a single coefficient for treated towns in the post-reform

years (1953-92). Panel B reports separate βt for each decade after the reform until the 1980s. In these

regressions, we include the 1992 election in the 1980s decade. In both panels the omitted category is the β

of the elections of 1946 and 1948. Columns 1-3: dependent variable is Christian Democrat (DC) vote share.

Columns 4-6: dependent variable is Communist (PCI) vote share. For PCI we use the vote share of the

Popular Democratic Front (FDP) in 1948 and the vote share for the Democratic Party of the Left (PDS) in

1992. Electoral data are from Corbetta and Piretti (2009). Units of observation are town-years. The sample

consists of all towns close to the reform borders of Delta Padano and Maremma. We report estimates for

the preferred bandwidth (25 Km) and two alternative bandwidths (10 Km and 50 Km). Standard errors

clustered at the town level in parentheses. *p<0.1, **p<0.05, ***p<0.01.

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Table 4: The impact of the reform on home ownership.

Preferred Alternative

Bandwidth Bandwidths

< 25km < 10km < 50km

(1) (2) (3)

Treatment × 1961 0.001 -0.002 0.001

[0.003] [0.004] [0.002]

Treatment × 1971 -0.005 -0.009 -0.004

[0.005] [0.009] [0.005]

Treatment × 1981 -0.006 -0.009 -0.006

[0.006] [0.011] [0.005]

Treatment × 1991 -0.005 -0.005 -0.007

[0.009] [0.014] [0.007]

Treatment × 2001 -0.003 -0.011 -0.008

[0.009] [0.015] [0.007]

Mean Y Control Group 0.20 0.19 0.19

Number of Towns 490 222 863

Observations 2940 1332 5178

Notes: The Table reports coefficients βt from the panel RDD Equation (1), which controls for year ×reform area and town fixed effects. Dependent variable is per capita homes occupied by the owner. The

omitted category is the β of the elections of 1951. Source is the decadal population censuses (ISTAT, 1937,

1955a, 1965, 1974, 1985, 1995, 2005). Units of observation are town-years. The sample consists of all towns

close to the reform borders of Delta Padano and Maremma. We report estimates for the preferred bandwidth

(25 Km) and two alternative bandwidths (10 Km and 50 Km). Standard errors clustered at the town level

in parentheses. *p<0.1, **p<0.05, ***p<0.01.

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Table 5: The impact of the reform on Forza Italia vote share.

1994 1996 2001

(1) (2) (3) (4) (5) (6)

Treatment 0.001 0.006 0.002 0.005 -0.001 0.004

[0.010] [0.009] [0.008] [0.008] [0.010] [0.009]

Mean Y Control Group 0.16 0.16 0.14 0.14 0.23 0.23

Control DC 1948 No Yes No Yes No Yes

Observations 490 482 490 482 490 482

Notes: The Table reports coefficients β of separate regressions of the RDD specification in Equation (2).

Columns 2, 4 and 6 control for Christian Democrat vote share in 1948. Dependent variable is Forza Italia vote

share (Berlusconi’s party). Columns 1-2: election year is 1994; columns 3-4: election year is 1996; columns 5-

6: election year is 2001. Electoral data are from Corbetta and Piretti (2009). Units of observation are towns.

The sample consists of all towns within 25 Km to the reform borders of Delta Padano and Maremma. The

towns of Bieda (Viterbo province), Colle di Tora, Contigliano (Rieti), Rocca Santo Stefano (Rome), Rosolina

(Rovigo), San Vincenzo (Livorno), Santa Luce Orciano (Pisa) and Stroncone (Terni) have missing data in

the 1948 elections. Heteroschedastic robust standard errors in parentheses. *p<0.1, **p<0.05, ***p<0.01.

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Appendix

A The 1950 Italian Land Reform

Figure A.1: Expropriation Criteria

Notes: Annex to the 1951 Law. The Table specifies the share of land to be expropriated for different

estates. On the x-axis estates are ranked according to their productivity (average taxable income per ha: on

the left the most productive, on the right the least productive). On the y-axis estates are ranked according

to size (total taxable income: at the top the smallest, at the bottom the largest). Every cell specifies the

percentage of land to be expropriated (in percentage).

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Figure A.2: Expropriation and redistribution maps.

Notes: Panel A: share of estates producing income above ₤20’000. Source: Medici (1948). Panel B:

colored towns are included in the area of Puglia and Lucania. Towns marked in black were included in the

reform area, but did not expropriate any land. Source: Prinzi (1956).

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Figure A.3: Original applications

Notes: Example of rejected applications. On the left: on the top-left corner “Rosso” identifies the applicant as “red” (i.e. communist).

On the right: last sentence on the report reads: “It turns out that the above family is politically close to the extreme left”. Source: ALSIA

archive. We thank Eleonora Cesareo for sharing this material with us.

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B Data Appendix

B.1 The Map of Italian Towns in 1951

We construct our data from a 1951 map of Italy. We create this map by combining twocomplete lists of towns, one from 1951 and one from 2001,37 with a shapefile of 2001 Italiantowns38. We use province and town name to match the two lists and construct the 1951 maptaking into account merging and splitting events that happened between 1951 and 2001. Weend up with a map and a dataset of 7792 towns. We drop 7 towns less than 50 km farfrom a reform border because they were merged into another town and it is not possible toreconstruct their borders in 1951.39 We compute the distance between the town centroidand each reform area border and assign each town to its closest reform area. We take intoaccount splitting and merging events to add data from years after 1951. In the case of a townsplitting after 1951, we aggregate the data for the towns that were a unique entity in 1951.When more towns merged after 1951, we assign weights based on population or area and wematch the weighted measures to the relevant 1951 towns. This procedure causes variablesfor different years to have a different number of observations.

B.2 Variable Construction

Treatment

Treated town. Treated towns lie inside reform areas. In these towns, reform bodies hadthe power to expropriate and redistribute land. The list of treated towns is specified in theexecutive orders enacting the land reform (D.P.R.66/1951, D.P.R.67/1951, D.P.R.68/1951,D.P.R.69/1951, D.P.R.70/1951, D.P.R.264/1951, D.P.R.265/1951).

Distance to reform border. We define continuous reform borders by conflating allcontiguous towns inside reform areas. We then use ArcGIS to compute the distance betweenthe centroid of each town and the closest reform area border.

Electoral outcomes

Town-level electoral results in 1919-24 and 1946-2001 come from Corbetta and Piretti(2009). We correct vote shares larger than 100% with data from the Ministry of the Interior.

37We find these lists on http://www.elesh.it.38From ISTAT. ISTAT provides a shapefile for 1991 towns, but ELESH website does not have a 1991 list

of towns.39Nicastro, Sambiase and Sant’Eufemia Lamezia were joined into Lamezia Terme; Carrara San Giorgio

and Carrara Santo Stefano were joined into Due Carrare; Contarina and Donada were joined into PortoViro. Other small holes in our map, inside the 50km buffer, are caused by towns created from territories thatin 1951 were part of several towns. For example: Semproniano was created in 1963 with territories takenfrom Manciano, Roccalbegna and Santa Fiora; Sellia Marina was created in 1957 with territories from Albi,Soveria Simeri, Sellia, Cropani and Magisano.

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1946 elections nominated members of the Constitutional Assembly. For the years 1919-241948-2001 we look at elections for the lower chamber of the Italian Parliament.

DC vote share: 1946-92. Vote share is total DC votes divided the total number ofvotes cast.

log DC votes: 1946-92. The variable is the natural logarithm of total DC votes. Wemade no adjustment for zeros as there were none.

PCI vote share: 1946-92. We use the total votes for the Popular Democratic Front(FDP) in 1948. We use the total votes for the Democratic Party of the Left (PDS) in 1992.In all other years we use total votes for the Communist Party (PCI). Vote share is total ofthe votes of one of these parties divided the total number of votes cast.

log PCI votes: 1946-92. The variable is the natural logarithm of total PCI votes. Wemade no adjustment for zeros as there were none.

DC vote share: 1919-24. We take the Italian Popular Party (PPI) to be the ChristianDemocrats in 1919, 1921 and 1924. Vote share is total PPI votes divided the total numberof votes cast.

PSI vote share: 1919-48. The Socialist Party ran under the name of Italian SocialistParty (PSI) in 1919, Official Socialist Party (PSU) in 1921 and United Socialist Party (PSU)in 1924. After the war, it ran as Italian Socialist Party (PSI) in 1946 and together with theCommunist Party in the Popular Democratic Front (FDP) in 1948. Vote share is total votesfor one of these parties divided the total number of votes cast.

PCI vote share: 1921-48. The Communist Party (PCI) was founded in 1921 and ranin both 1921 and 1924 elections. After the war, it ran as Italian Communist Party (PCI) in1946 and together with the Socialist Party in the Popular Democratic Front (FDP) in 1948.Vote share is total votes for one of these parties divided the total number of votes cast.

Share “yes” in divorce referendum: 1974. Town-level returns from the 1974 divorcereferendum is from Ministero dell’Interno (1977). Share of “yes” votes is total votes forrepealing the divorce law divided total number of votes cast.

Forza Italia vote share: 1994-2001. Vote share is total Forza Italia votes dividedtotal number of votes cast.

log of eligible voters: 1946-92. Between 1946 and 1972 all citizens above 21 wereeligible to vote. In 1975 the age limit was reduced to 18. The variable is the naturallogarithm of elegible voters.

Voter turnout: 1946-92. This variable is number of votes cast by number of eligiblevoters.

Mayor affiliation: 1946. We compile a new database with the affiliation of may-ors at the time of the reform from historical newspapers published after the mayor electionsin 1946. We use L’Avvenire d’Italia (1946),L’Unita (1946) and La Voce Repubblicana (1946).

Land distribution

Share of expropriable estates (number): 1948. Expropriable estates data is fromMedici (1948), Table 2. The table reports town-level number of estates in 1948, broken

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down by 11 separate categories of estate value. We use this information to construct theshare of estates that the reform allowed to expropriate. We consider estates that could beexpropriated as those with value in one of the top 4 categories of value. All estates in thesecategories were worth at least ₤20’000. Share of expropriable estates (number) is the numberof expropriable estates divided the total number of estates.

Share of expropriable estates (value): 1948. Expropriable estates data is fromMedici (1948), Table 2. The table reports town-level value of estates in 1948, broken downby 11 separate categories of estate value. We use this information to construct the shareof estates value that the reform allowed to expropriate. We consider estates that could beexpropriated as those with value in one of the top 4 categories of value. All estates in thesecategories were worth at least ₤20000. Share of expropriable estates (value) is the total valueof expropriable estates divided by the total value of estates.

Share of owner-operated farms (number): 1961. Data on number of farms by typeof operation is from ISTAT (1962a), Table 11. Share of owner-operated farms (number) isnumber of owner-operated farms divided the total number of farms.

Share owner-operated farms (land): 1961. Data on farm size by type of operationin 1961 is from ISTAT (1962a), Table 11. Share owner-operated farms (land) is total land ofowner-operated farms divided total farmland.

Economic and demographic characteristics

All economic and demographic characteristics come from the province records of decadalpopulation censuses (ISTAT, 1937, 1955a, 1965, 1974, 1985, 1995, 2005).

log population: 1936-2001. Population data is from the following tables of the decadalpopulation censuses: Table 4 (1951, 1961 and 1981); Table 3 (1971), Table 5.2 (1991), Table2.2 (2001). The variable is the natural logarithm of total population. We made no adjustmentfor zeros as there were none.

Share of active population: 1936-2001. Active population data is from the followingtables of the decadal population censuses: Table 6 (1951, 1961 and 1971), Table 7 (1981),Table 5.4 (1991), Table 2.5 (2001). The variable is active population divided total workingage population. In 1936 the working age is not specified. In 1951 and 1961 working age is10 and in 1971 14. From 1981 on we observe population by detailed age group, and use 14as the cutoff for working age population to allow comparison with 1971.

Share of workers in agriculture: 1936-2001. Sector of employment of workers isfrom the following tables of the decadal population censuses: Table 6 (1951 and 1961), Table7 (1971), Table 8 (1981), Table 5.5 (1991), Table 2.7 (2001). The variable is number ofworkers employed in agriculture divided total active population. In 1961 and 1971 forestryis included in agriculture.

Share of workers in manufacturing: 1936-2001. Sector of employment of workersis from the following tables of the decadal population censuses: Table 6 (1951 and 1961),Table 7 (1971), Table 8 (1981), Table 5.5 (1991), Table 2.7 (2001). The variable is numberof workers employed in manufacturing divided total active population. The manufacturing

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sector includes extractive and manufacturing industry. In 1981 manufacturing is the sum ofeconomic sectors 2, 3 and 4 in Table 8.

Share of workers in public sector: 1936-2001. Sector of employment of workersis from the following tables of the decadal population censuses: Table 6 (1951 and 1961),Table 7 (1971), Table 8 (1981), Table 5.5 (1991), Table 2.7 (2001). The variable is numberof workers employed in manufacturing divided total active population. In 1981 public sectoris economic sector 9.A. In 2001 public sector combines workers in public administration andother public employees.

Change in log population: 1936-1951. The variable is the natural logarithm of pop-ulation in 1951 minus the natural logarithm of population in 1936. We made no adjustmentfor zeros as there were none.

Change in log active population: 1936-1951. The variable is the natural logarithmof active population in 1951 minus the natural logarithm of active population in 1936. Wemade no adjustment for zeros as there were none.

Change in sectoral share (agriculture, manufacturing, public sector): 1936-1951. These variables are the difference between the share of active population in agriculture,manufacturing and public sector in 1951 and the share of the same sectors in 1936.

Share of males: 1951-2001. Population data is from the following tables of the decadalpopulation censuses: Table 4 (1951, 1961 and 1981); Table 3 (1971), Table 5.2 (1991), Table2.2 (2001). The variable is number of males divided by total population.

Share of people in age groups (<21, 21-45; 46-65; >65): 1951-2001. Populationdata is from the following tables of the decadal population censuses: Table 4 (1951, 1961and 1981); Table 3 (1971), Table 5.2 (1991), Table 2.2 (2001). The variable is population inspecific age groups divided by total population.

Home ownership: 1951-2001. Home ownership data is from the following tables ofthe decadal population censuses: Table 9 (1951), Table 10 (1961), Table 17 (1971), Table 16(1981), Table 5.18 (1991), Table 2.12 (2001). The town-level is number of homes owned bytheir residents divided by total population.

Town balance sheets

Transfers per capita: 1952, 1955, 1959. Municipal balance sheets are from ISTAT,1955b, 1957, 1962b. The variable is transfers from the central government divided by 1951total population.

Geographic characteristics

Coordinates. Towns’s latitude and longitude corresponds to the coordinates of theircentroids in the 1951 map. They are measured in degrees in the WGS84 UTM32N coordinatesystem.

Distance to coast. We compute the distance to the coast of towns’ 1951 centroid inArcGIS.

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Distance to Rome. We compute the distance to Rome’s centroid and towns’ 1951centroid in ArcGIS.

Provinces: 1951. Each town is assigned to its 1951 province.Slope. Slope data is from the US Geological Survey database (USGS, 2005). The data is

defined on 3-arc seconds grid covering the entire planet (approximately 462.5 462.5 meters).We join the raster to the map of 1951 Italian towns and assign to every town the averageslope of all grid cells falling inside the town limits.

Elevation. Elevation data is from the US Geological Survey database (USGS, 2005).The data is defined on 3-arc seconds grid covering the entire planet (approximately 462.5462.5 meters). We join the raster to the map of 1951 Italian towns and assign to every townthe average elevation of all grid cells falling inside the town limits.

Potential yield: wheat. Potential yield data is from FAO-GAEZ (FAO, 2015). Thisdata is defined on a 9.25 × 9.25 Km grid covering the entire planet. We join the raster tothe map of 1951 Italian towns and assign to every town the average potential yield of wheatwith medium-level of inputs of all grid cells falling inside the town limits.

Endemic malaria 1934. We select towns where malaria was endemic in 1934 using amap by Missiroli (1934). To digitize this data, we superimpose Missirolis map to our mapand code every town in the malaria areas as having malaria in 1934.

Potential yield: maize. Potential yield data is from FAO-GAEZ (FAO, 2015). Thisdata is defined on a 9.25 × 9.25 Km grid covering the entire planet. We join the raster tothe map of 1951 Italian towns and assign to every town the average potential yield of maizewith medium-level of inputs of all grid cells falling inside the town limits.

Share of border exposed to treatment. The variable is the length of the town limitsdivided by the length of these limits that touch a treated towns.

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C Robustness and Alternative Specifications

C.1 Additional Balance and Pre-Trends

Table C.1: Additional Balance and Pretrends: 1946-1948.

Preferred Bandwidth Alternative Bandwidths

< 25km < 10km < 50km

Control β [s.e] Control β [s.e] Control β [s.e]

Mean Mean Mean

A: Share of estates worth in 1948

>₤200, 000 0.001 -0.000 [0.001] 0.001 -0.002 [0.002] 0.001 -0.001 [0.001]

>₤100, 000 0.004 -0.001 [0.002] 0.004 -0.007 [0.005] 0.003 -0.003 [0.002]

>₤40, 000 0.013 0.001 [0.006] 0.014 -0.021 [0.015] 0.011 -0.005 [0.006]

>₤20, 000 0.028 0.002 [0.010] 0.029 -0.037 [0.024] 0.025 -0.010 [0.010]

B. Balance Mayor Elections 1946

DC 0.149 -0.016 [0.069] 0.155 0.079 [0.100] 0.181 0.007 [0.058]

PCI (alone) 0.041 0.002 [0.040] 0.019 0.041 [0.067] 0.044 -0.033 [0.032]

PCI (with allies) 0.428 0.038 [0.099] 0.465 0.187 [0.152] 0.439 0.004 [0.082]

PRI 0.041 0.005 [0.054] 0.032 0.070 [0.099] 0.042 0.023 [0.039]

C. Balance Vote Shares Other Parties 1946 & 1948

Socialists (PSI) 1946 0.194 -0.003 [0.019] 0.189 -0.029 [0.030] 0.205 0.000 [0.016]

Socialists (PSI) 1948 0.408 0.035 [0.034] 0.425 -0.010 [0.053] 0.387 0.019 [0.029]

Social-Democrats (PSDI) 1946 0.194 -0.003 [0.019] 0.189 -0.029 [0.030] 0.205 0.000 [0.016]

Social-Democrats (PSDI) 1948 0.049 -0.003 [0.008] 0.051 0.009 [0.015] 0.058 0.005 [0.006]

Republicans (PRI) 1946 0.066 -0.011 [0.016] 0.074 -0.034 [0.028] 0.058 -0.012 [0.013]

Republicans (PRI) 1948 0.041 -0.021* [0.012] 0.046 -0.030* [0.017] 0.035 -0.022** [0.009]

Liberals (PLI) 1946 0.026 0.001 [0.007] 0.025 0.010 [0.011] 0.026 -0.004 [0.005]

Liberals (PLI) 1948 0.013 0.000 [0.005] 0.016 -0.000 [0.007] 0.013 0.000 [0.004]

Post-Fascists (MSI) 1948 0.019 -0.001 [0.003] 0.015 -0.000 [0.005] 0.016 -0.005* [0.003]

D. Pre-Trends Vote Shares Other Parties 1948-46

Socialists (PSI) 0.215 0.038 [0.028] 0.236 0.020 [0.043] 0.182 0.019 [0.023]

Social-Democrats (PSDI) -0.145 0.001 [0.019] -0.138 0.038 [0.032] -0.147 0.004 [0.016]

Republicans (PRI) -0.025 -0.010 [0.009] -0.028 0.004 [0.020] -0.023 -0.010 [0.008]

Liberals (PLI) -0.013 -0.001 [0.007] -0.009 -0.011 [0.011] -0.013 0.004 [0.006]

Notes: The columns beneath β report the coefficient of separate regressions of the RDD specification in Equation (2). Dependent variables

are specified on the first column, and their average in control towns is reported in the columns beneath “Control mean”. Refer to Appendix B for

a detailed description of each of these variables and their sources. Units of observation are towns. The sample consists of all towns close to the

reform borders of Delta Padano and Maremma. We report estimates for the preferred bandwidth (25 Km) and two alternative bandwidths (10

Km and 50 Km). In Panel A, the sample is approximately 17% smaller due to missing data in Medici (1948). The columns beneath “[s.e.]” report

heteroschedastic robust standard errors. *p<0.1, **p<0.05, ***p<0.01.

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C.2 1919-1948 Pre-Trends

Figure C.2.1: Pre-Fascism Elections

-10%

-5%

0%

5%

10%

15%

1919

1921

1924

1946

1948

Election year

A. 1919-48: pre-trends DC

-15%

-10%

-5%

0%

5%

10%

1919

1921

1924

1946

1948

Election year

B. 1919-48: pre-trends PSI

-15%

-10%

-5%

0%

5%

1919

1921

1924

1946

1948

Election year

C. 1919-48: pre-trends PCI

Notes: The Panels display coefficients βt from the panel RDD Equation (1), which controls for year × reform area and town fixed effects.

The omitted category is the β of 1948. Panel A: dependent variable is Christian Democrat (DC) vote share. For DC we use the vote share

of the Italian Popular Party (PPI) in the years 1919-24. Panel B: dependent variable is Italian Socialist Party (PSI) vote share. For PSI we

use the vote share of the Official Socialist Party (PSU) in 1921, of the United Socialist Party (PSU) in 1924 and of the Popular Democratic

Front (FDP) in 1948. Panel C: dependent variable is Italian Communist Party (PCI) vote share. For PCI we use the vote share of the Popular

Democratic Front (FDP) in 1948. Electoral data are from Corbetta and Piretti (2009). Units of observation are town-years. The sample

consists of all towns within 25 Km from the reform borders of Delta Padano and Maremma. We estimate standard errors clustered at the town

level and plot 95% confidence intervals as bars around the coefficients.

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C.3 Alternative Specifications

Table C.2: Robustness to alternative specifications.

Christian Democrat Communist Party

Prov. FE No prov. seats 2nd pol. Lat-long pol. Prov. FE No prov. seats 2nd pol. Lat-long pol.

(1) (2) (3) (4) (5) (6) (7) (8)

Treatment × 1950s 0.033∗∗ 0.041∗∗∗ 0.048∗∗ 0.031∗∗∗ -0.022∗ -0.033∗∗ 0.004 -0.022∗∗∗

[0.015] [0.013] [0.024] [0.007] [0.012] [0.014] [0.022] [0.008]

Treatment × 1960s 0.036∗∗ 0.036∗∗ 0.061∗∗ 0.032∗∗∗ -0.031∗∗ -0.036∗∗ -0.013 -0.033∗∗∗

[0.016] [0.016] [0.027] [0.008] [0.015] [0.015] [0.024] [0.008]

Treatment × 1970s 0.046∗∗∗ 0.047∗∗∗ 0.064∗∗ 0.043∗∗∗ -0.030∗ -0.035∗∗ -0.017 -0.029∗∗∗

[0.016] [0.016] [0.025] [0.009] [0.016] [0.016] [0.027] [0.009]

Treatment × 1980s 0.045∗∗ 0.048∗∗∗ 0.047∗ 0.053∗∗∗ -0.019 -0.024 -0.002 -0.031∗∗∗

[0.018] [0.018] [0.028] [0.010] [0.018] [0.019] [0.031] [0.010]

Mean Y control group 0.36 0.36 0.36 0.36 0.33 0.33 0.33 0.33

Number of Towns 490 480 490 490 490 480 490 490

Observations 5838 5718 5838 5838 5838 5718 5838 5838

Notes: The Table reports coefficients βt from alternative specifications of the panel RDD Equation (1). In these regressions, we include

the 1992 election in the 1980s decade. The omitted category is the β of the elections of 1946 and 1948. All regressions control reform area ×year and town fixed effects. Columns 1 and 5: control for province × year fixed effects. Columns 2 and 6: drop 10 provincial seats (including

Rome). Columns 3 and 7: control for 2nd order polynomial in distance interacted with decades on both side of the border. Columns 4 and

8: control for polynomial in latitude and longitude interacted with decades as in Dell (2010). Columns 1-4: dependent variable is Christian

Democrat (DC) vote share. Columns 5-8: dependent variable is Communist (PCI) vote share. For PCI we use the vote share of the Popular

Democratic Front (FDP) in 1948 and the vote share for the Democratic Party of the Left (PDS) in 1992. Electoral data are from Corbetta

and Piretti (2009). Units of observation are town-years. The sample consists of all towns within 25 Km of the reform borders of Delta Padano

and Maremma. Standard errors clustered at the town level in parentheses. *p<0.1, **p<0.05, ***p<0.01.

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Table C.3: Robustness to alternative bandwidths: Parliamentary elections (1946-1992) anddivorce referendum (1974).

< 25km < 10km < 50km

(1) (2) (3)

Treatment × 1950s 0.041∗∗∗ 0.045∗ 0.031∗∗∗

[0.013] [0.024] [0.011]

Treatment × 1960s 0.037∗∗ 0.053∗ 0.028∗∗

[0.016] [0.027] [0.013]

Treatment × 1970s 0.047∗∗∗ 0.061∗∗ 0.037∗∗∗

[0.016] [0.025] [0.013]

Treatment × 1974 0.026 0.051∗∗ 0.016

[0.016] [0.026] [0.013]

Treatment × 1980s 0.048∗∗∗ 0.046 0.041∗∗∗

[0.018] [0.028] [0.015]

Mean Y Control Group 0.36 0.34 0.38

Number of Towns 490 222 863

Observations 6328 2873 11096

Notes: The Table reports coefficients βt of the panel RDD Equation (1) with different bandwidths. In

these regressions, we include the 1992 election in the 1980s decade. The omitted category is the β of the

elections of 1946 and 1948. All regressions control reform area × year and town fixed effects. Dependent

variable is Christian Democrat (DC) vote share in all years except 1974. In 1974 the dependent variable is

the share of “Yes” votes at the divorce referendum. Units of observation are town-years. Sample consists

of all towns within a given bandwidth of the reform borders of Delta Padano and Maremma: Column 1:

bandwidth is 25 Km; Column 2: bandwidth is 10 Km; Column 3: bandwidth is 50 Km. Standard errors

clustered at the town level in parentheses. *p<0.1, **p<0.05, ***p<0.01.

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C.4 Robustness to Dropping Portions of the Reform Border

Figure C.4.1: Map: splitting the border in 10 segments

Notes: The Map shows how we split the borders of Delta Padano and Maremma into 10 segments of

equal length. Each towns within 25 km of the border of Delta Padano and Maremma is assigned to the

closest segment. We report estimates of (1) in Figure C.4.2.

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Figure C.4.2: Treatment coefficients when dropping portions of the sample

0%

2%

4%

6%

8%

None 1 2 3 4 5 6 7 8 9 10Segment dropped

A. Treatment effect: DC

-8%

-6%

-4%

-2%

0%

None 1 2 3 4 5 6 7 8 9 10Segment dropped

B. Treatment effect: PCI

Notes: The Panels report coefficients β from the panel RDD Equation (1), which controls for year ×reform area and town fixed effects. We estimate a single coefficient for treated towns in the post-reform

years (1953-92). In both Panels, the first estimate (point “None” on the x-axis) corresponds to our baseline

coefficient. We obtain the other coefficients after dropping all towns close to one of the 10 segments marked

on Map C.4.1. Panel A: dependent variable is Christian Democrat (DC) vote share. Panel B: dependent

variable is Communist (PCI) vote share. For PCI we use the vote share of the Popular Democratic Front

(FDP) in 1948 and the vote share for the Democratic Party of the Left (PDS) in 1992. Electoral data are

from Corbetta and Piretti (2009). Units of observation are town-years. The sample consists of all towns

within 25 km to the reform borders of Delta Padano and Maremma. We estimate standard errors clustered

at the town level and plot 95% confidence intervals as bars around the coefficients.

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C.5 Spatial Standard Errors

Table C.4: Standard error robust to temporal and spatial correlation.

DC vote share PCI vote share

(1) (2) (3) (4) (5) (6)

Bandwidth ≤ 25km ≤ 10km ≤ 50km ≤ 25km ≤ 10km ≤ 50km

Treatment × post 1951 0.044 0.052 0.035 -0.031 -0.013 -0.024

Cluster: town [0.015]∗∗∗ [0.025]∗∗ [0.012]∗∗∗ [0.015]∗∗ [0.026] [0.013]∗

Conley s.e.: cutoff = 5 km [0.014]∗∗∗ [0.024]∗∗ [0.012]∗∗∗ [0.007]∗∗∗ [0.017] [0.006]∗∗∗

Conley s.e.: cutoff = 10 km [0.014]∗∗∗ [0.023]∗∗ [0.012]∗∗∗ [0.007]∗∗∗ [0.016] [0.007]∗∗∗

Conley s.e.: cutoff = 25 km [0.015]∗∗∗ [0.023]∗∗ [0.013]∗∗∗ [0.009]∗∗∗ [0.013] [0.010]∗∗

Conley s.e.: cutoff = 50 km [0.016]∗∗∗ [0.023]∗∗ [0.014]∗∗ [0.009]∗∗∗ [0.011] [0.011]∗∗

Conley s.e.: cutoff = 100 km [0.016]∗∗∗ [0.023]∗∗ [0.014]∗∗ [0.005]∗∗∗ [0.010] [0.009]∗∗∗

Observations 5838 2651 10233 5838 2651 10233

Notes: The Table reports on the first row coefficients βt from the panel RDD Equation (1), which controls

for year × reform area and town fixed effects. Columns 1-3: dependent variable is Christian Democrat (DC)

vote share. Columns 4-6: dependent variable is Communist (PCI) vote share. For PCI we use the vote share

of the Popular Democratic Front (FDP) in 1948 and the vote share for the Democratic Party of the Left

(PDS) in 1992. Electoral data are from Corbetta and Piretti (2009). Units of observation are town-years.

The sample consists of all towns within 25 Km to the reform borders of Delta Padano and Maremma. Row

2: standard errors clustered at the town level in parentheses. Rows 3-7: standard errors robust to time-series

and spatial correlation calculated with the formula of Conley (1999). In these estimates, spatial correlation

is assumed to decay linearly until a cutoff. We report results from 5 different cutoffs: 5 Km, 10 Km, 25 Km,

50 Km and 100 Km. *p<0.1, **p<0.05, ***p<0.01.

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C.6 Placebo Borders

Figure C.6.1: Placebo Borders: Christian Democrats

-4%

-2%

0%

+2%

+4%

+6%

-20 -10 0 10 20Distance from border

Placebo coefficients Real coefficient

A. Coefficients: DC

-2

-1

0

1

2

3

-20 -10 0 10 20Distance from border

Placebos t-statistic Real t-statistic

B. t-statistics: DC

Notes: The Panels report results of placebo regressions. We simulate 20 fictitious reforms, by moving

the reform border inside and outside the reform area in steps of 2.5 km and creating a new sample of all towns

within 25 km from this new border. For each of these fictitious reforms, we estimate a single coefficient for

the impact of the reform on in the post-reform years (1953-92). Panel A: estimated β. Panel B: t-statistics

calculated from standard errors clustered at the town level . In both panels we plot in red the coefficient and

t-statistics we obtain when we estimate the effect in the true reform area. Dependent variable is Christian

Democrat (DC) vote share from Corbetta and Piretti (2009). Units of observation are town-years.

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Figure C.6.2: Placebo Borders: Communist Party

-4%

-2%

0%

+2%

+4%

+6%

-20 -10 0 10 20Distance from border

Placebo coefficients Real coefficient

A. Coefficients: PCI

-2

-1

0

1

2

-20 -10 0 10 20Distance from border

Placebos t-statistic Real t-statistic

B. t-statistics: PCI

Notes: The Panels report results of placebo regressions. We simulate 20 fictitious reforms, by moving

the reform border inside and outside the reform area in steps of 2.5 km and creating a new sample of all towns

within 25 km from this new border. For each of these fictitious reforms, we estimate a single coefficient for

the impact of the reform on in the post-reform years (1953-92). Panel A: estimated β. Panel B: t-statistics

calculated from standard errors clustered at the town level . In both panels we plot in red the coefficient and

t-statistics we obtain when we estimate the effect in the true reform area. Dependent variable is Communist

Party (PCI) vote share from Corbetta and Piretti (2009). For PCI we use the vote share of the Popular

Democratic Front (FDP) in 1948 and the vote share for the Democratic Party of the Left (PDS) in 1992.

Units of observation are town-years.

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C.7 Continuity of the Running Variable

This appendix presents the McCrary test and discusses why in our context a jump in thedensity does not need to be evidence of manipulation.

Appendix Figure C.7.1 presents the density approximation of the number of towns in theNorth (y-axis) as a function of the distance to the border (x-axis). The formal McCrarytest has a t-statistics of -2.07 and rejects the null of no jump at the border. We believethat the jump in the density is a result of the geometry of the land reform. The reformareas are defined on clusters of towns that are on average convex sets (see Figure 1). Inthis case, for a given distance to the border, the area outside of the border will be greaterthan the area inside of it. Indeed, treated towns within 25 km of the border occupy 35% lessarea than control towns within the same distance (11875 vs 18215 square Km). Because onaverage towns have the same size inside and outside the border (the RD estimate at 25 Kmfor log(area) is 0.21 from a sample mean of 17.4; p = 0.21), it must be the case that thereare more towns outside than inside the reform area (see Appendix Figure C.7.2). We wouldthen expect a greater number of control towns at every given absolute value of distance tothe border, including values very close to the border (see Appendix Figure C.7.1).

We validate this intuition with two separate exercises. In the first exercise, we move theborder of Maremma inside and outside of the actual reform area by including progressivelyevery “ring of towns touching the previous border. For each of these fictitious borders“parallel (so to speak) to the actual reform, we re-estimate the McCrary test. AppendixFigure C.7.3-Panel A reports the t-statistics of the McCrary test (y-axis) against the numberof rings of towns we moved the reform border (x-axis). The McCrary t-statistics for the townsin Maremma is -1.89, and many of the other fictitious borders have McCrary estimates closeto this number.

In the second exercise we use randomized inference and we simulate 999 separate fictiousreform areas on the true map of northern Italy. To build these fictitious reform areas, we fol-low rules that replicate the actual reform: we draw areas of (i) contiguous towns, (ii) locatedat least partially on the coast and (iii) that cover the same area of the actual reform. Foreach of these replications we estimate the McCrary test. We plot the distribution of the 999t-statistics on Appendix Figure C.7.3-Panel B. The red vertical line is the average t-statistic,which is -1.21. Our observed t-statistics lies at the 19th percentile of the distribution.

Taken together, these exercises suggest that the discontinuous drop in the number oftowns at the border is not the result of manipulation, but a mechanical consequence of thegeography of convex clusters of towns in Italy.

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Figure C.7.1: McCrary Test

0.0

1.0

2.0

3.0

4.0

5

-40 -20 0 20 40

Distance from border

Notes: The Figure plots the density approximation of the number of towns within 25 Km from the

border of Delta Padano and Maremma. The approximation estimates separate densities on the two sides of

the border and it is the basis of the test proposed by McCrary (2008). The t-statistics of the test is -2.07.

Figure C.7.2: Example of convex reform area

Notes: The map presents an example of convex reform area with towns of similar size on the two sides of

the border. In this case the number of towns just outside of the border is greater than the number of towns

just inside.

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Figure C.7.3: Simulation Exercises

-2

-1

0

1

2

-1 0 1 2 3 4 5 6 7 8 9 10 11 12 13Rings of towns around the reform

A. Placebo borders

0.0

0.2

0.4

0.6

0.8

-4 -3 -2 -1 0 1t-stat of McCrary test

B. Placebo reform areas

Notes: The Panels report t-statistics of McCrary tests estimated on fictitious reform areas. Panel A: 14 fictitious reform areas; y-axis:

t-statistics of the McCrary tests. The first area is created by removing from Maremma all treated towns lying on the reform border (point -1

on the x-axis). The other 13 areas are created by expanding Maremma so that it includes all towns lying on each successive reform border

(points 1-13 on the x-axis). The t-statistics of the McCrary test of the true Maremma area is in red (point 0 on the x-axis). Panel B: 999

randomly generated fictitious reform areas. Each of these areas consist of contiguous towns with the same area as Maremma. We calculate

the t-statistics of the McCrary test for each of them on the sample of towns that lie within 25 Km from these fictitious borders. The Figure

reports the distribution of these t-statistics. The black vertical line marks the t-statistics of the McCrary test of the true Maremma area. The

red vertical line marks the average t-statistics of the distribution.

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D Additional Results

D.1 Effect of the Reform on Other Parties

Table D.1: The impact of the land reform on all major Italian parties

Vote share

(1) (2) (3) (4) (5) (6) (7)

DC PCI PSI PSDI PRI PLI MSI

Treatment × Post 0.044∗∗∗ -0.031∗∗ -0.005 0.001 0.002 -0.001 -0.004

[0.015] [0.015] [0.021] [0.011] [0.010] [0.005] [0.004]

Mean Y Control Group 0.36 0.33 0.14 0.06 0.03 0.02 0.04

Number of Towns 490 490 490 490 490 490 490

Observations 5838 5838 5831 5838 5838 5838 5356

Notes: The Table reports a single coefficient for treated towns in the post-reform years (1953-92) from

the panel RDD Equation (1), which controls for year × reform area and town fixed effects. Columns 1-7:

dependent variables are vote share for Christian Democrat (DC: Col. 1); Italian Communist Party (PCI:

Col. 2); Italian Socialist Party (PSI: Col. 3); Italian Social-Democratic Party (PSDI: Col. 4); Italian

Republican Party (PRI: Col. 5); Italian Liberal Party (PLI: Col. 6) and Italian Social Movement (MSI: Col.

7). Sometimes different parties run under a single name: this happens in 1946 (PSI and PSDI), 1948 (PCI

and PSI) and 1968 (PSI and PSDI). In these cases we assign the vote share of the combined party to each of

the two parties in the respective regressions. Electoral data are from Corbetta and Piretti (2009). Units of

observation are town-years. The sample consists of all towns within 25 Km to the reform borders of Delta

Padano and Maremma. The sample in Column 7 excludes the 1946 elections, when the MSI did not run.

Standard errors clustered at the town level in parentheses. *p<0.1, **p<0.05, ***p<0.01.

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D.2 Turnout

Figure D.2.1: Turnout: Panel RDD Coefficients

-20%

-15%

-10%

-5%

0%

+5%

194619

4819

5319

5819

6319

6819

7219

7619

7919

8319

8719

92

Election year

Notes: The Figure displays coefficients βt from the panel RDD Equation (1), which controls for year

× reform area and town fixed effects. The omitted category is the β of 1948. Dependent variable is votes

cast divided by number of eligible voters. Electoral data are from Corbetta and Piretti (2009). Units of

observation are town-years. The sample consists of all towns within 25 Km from the reform borders of Delta

Padano and Maremma. The vertical line marks the 1951 land reform. We estimate standard errors clustered

at the town level and plot 95% confidence intervals as bars around the coefficients.

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D.3 Changing society

Figure D.3.1: Share of Agricultural Workers and Correlation across Elections

0%

20%

40%

60%

80%

1936 1951 1961 1971 1981 1991

A. Agricultural labor share

1953

1958

1963

1968

1972

1976

1979

1983

1987

25%

50%

75%

100%

1958 1963 1968 1972 19761979 1983 1987 1992Election year

B. Correlation across elections

Notes: Panel A: share of workers employed in agriculture between 1936 and 1991. Source: decadal population censuses (ISTAT, 1937,

1955a, 1965, 1974, 1985, 1995, 2005). Panel B: pairwise correlation of Christian Democrat (DC) vote share across election years. Each point

corresponds to the pairwise correlation of town-level DC vote share in two separate elections. Correlation is on the y-axis; one of the election

years on the x-axis the other is marked on top of the lines. The lines connects correlations of the same election year. The sample consists of

all Italian towns.

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Figure D.3.2: The role of aligned mayors

-1.0

-0.5

0.0

0.5

1.0

1950 1955 1960

DC non-DCTowns with mayor:

Notes: The Figure display coefficients βt from the panel RDD Equation (1) for two groups of towns: those with DC mayors in 1946 (in

blue) and the others (in black). The regression controls for year × reform area × 1946 mayor affiliation and town fixed effects. The omitted

categories are the β of 1952 and the dependent variable is logarithm of per capita fiscal transfers from the central government to the municipal

governments (available only for 1952, 1955 and 1959). Sources of municipal transfers are ISTAT (1955b), ISTAT (1957) and ISTAT (1962b);

source of 1951 population is ISTAT (1955a). Sources of 1946 mayor affiliation are: L’Avvenire d’Italia (1946),L’Unita (1946) and La Voce

Repubblicana (1946). The sample consists of all towns within 25 Km from the reform borders of Delta Padano and Maremma. The green

vertical lines mark the 1951 land reform and the grey vertical line marks the year in which the first post-reform Parliament took office. We

estimate standard errors clustered at the town level and plot 95% confidence intervals as bars around the coefficients.

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D.4 Christian Democrat Parties after 1992

Figure D.4.1: Post-1992 Elections: Panel RDD

-5%

0%

+5%

+10%

1946

1948

1953

1958

1963

1968

1972

1976

1979

1983

1987

1992

1994

1996

2001

Election year

A. Treatment effect post-1992: DC

-8%

-6%

-4%

-2%

0%

+2%

1946

1948

1953

1958

1963

1968

1972

1976

1979

1983

1987

1992

1994

1996

2001

Election year

B. Treatment effect post-1992: PCI

Notes: The Panels display coefficients βt from the panel RDD Equation (1), which controls for year × reform area and town fixed effects.

The omitted category is the β of 1948. Panel A: dependent variable is Christian Democrat (DC) vote share. In the post-1992 elections we

consider DC the following parties: Italian Popular Party and Patto Segni (1994); Italian Popular Party, Lista Dini, the Christian Democratic

Center and the Christian Democratic Union (1996); Margherita, Christian Democratic Center and the Christian Democratic Union (2001).

Panel B: dependent variable is Communists (PCI) vote share. For PCI we use the vote share of the Popular Democratic Front (FDP) in 1948

and the vote share for the Democratic Party of the Left (PDS) in 1992. In the post-1992 elections we consider PCI the following parties:

Democratic Party of the Left (1992); Democratic Party of the Left and Communist Refoundation Party (1994-96); Democrats of the Left,

Communist Refoundation Party and Communist Party (2001). Electoral data are from Corbetta and Piretti (2009). Units of observation are

town-years. The sample consists of all towns within 25 Km from the reform borders of Delta Padano and Maremma. The vertical lines mark

the 1951 land reform. We estimate standard errors clustered at the town level and plot 95% confidence intervals as bars around the coefficients.

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D.5 Southern Italy

Table D.2: Balance and Pre-Trends at the Border

Preferred Bandwidth Alternative Bandwidths

< 25km (N=1169) < 10km (N=561) < 50km (N=1788)

Control β [s.e] Control β [s.e] Control β [s.e]

mean mean mean

A: Balance Land Distribution 1948

Share of Expropriable Estates 1948 0.001 0.004*** [0.001] 0.001 0.003 [0.002] 0.001 0.003* [0.001]

B: Balance Vote Shares 1946 & 1948

Christian Democrats (DC) 1946 0.350 -0.036* [0.020] 0.329 -0.036 [0.032] 0.351 -0.036** [0.016]

Christian Democrats (DC) 1948 0.534 -0.061*** [0.018] 0.517 -0.056* [0.029] 0.542 -0.061*** [0.014]

Communists (PCI) 1946 0.058 0.039** [0.017] 0.064 0.040 [0.027] 0.053 0.056*** [0.014]

Communists (PCI) 1948 0.169 0.073*** [0.020] 0.176 0.093*** [0.034] 0.159 0.093*** [0.017]

C: Balance Geography and Census 1951

Distance from the Coast 25.71 1.085 [2.294] 24.88 -0.777 [3.450] 27.53 2.298 [1.968]

Distance from Rome 307.4 -10.49 [10.04] 335.7 9.162 [16.68] 275.9 -17.75** [8.298]

Area (miles2) 13.56 10.67*** [2.963] 14.51 -3.906 [5.880] 12.71 18.32*** [2.631]

Slope 3.121 -0.322* [0.184] 2.673 -0.184 [0.293] 3.381 -0385*** [0.149]

Elevation 446.2 -15.95 [36.71] 416.1 -3.596 [55.86] 482.9 4.453 [31.52]

Wheat Suitability 4.052 0.021 [0.045] 4.029 0.087 [0.066] 4.050 -0.009 [0.041]

Maize Suitability 3.669 0.088 [0.099] 3.488 0.200 [0.140] 3.846 0.033 [0.087]

Malaria (1932) 0.546 -0.000 [0.051] 0.576 0.071 [0.086] 0.508 0.016 [0.044]

Log Population 8.231 0.386*** [0.109] 8.245 0.166 [0.178] 8.161 0.393*** [0.090]

Share Active Population 0.564 -0.001 [0.013] 0.570 0.029 [0.020] 0.558 -0.010 [0.010]

Share Agricultural Workers 0.690 0.016 [0.022] 0.685 0.017 [0.035] 0.691 0.013 [0.019]

Share Manufacturing Workers 0.118 -0.029*** [0.010] 0.121 -0.030* [0.017] 0.112 -0.034*** [0.008]

Share Public Sector Workers 0.040 0.006 [0.004] 0.039 0.008 [0.007] 0.041 0.005 [0.004]

D: Pre-Trends Vote Shares 1948-46

Christian Democrats (DC) 0.185 -0.024 [0.018] 0.187 -0.019 [0.030] 0.191 -0.025* [0.015]

Communists (PCI) 0.111 0.035** [0.015] 0.112 0.053** [0.023] 0.106 0.036*** [0.013]

E: Pre-Trends Census 1951-36

Log Population 0.125 0.058*** [0.013] 0.131 0.041* [0.022] 0.112 0.045*** [0.011]

Log Workers 0.171 0.100*** [0.026] 0.191 0.096** [0.043] 0.138 0.072*** [0.022]

Share Active Population 0.138 0.020* [0.011] 0.145 0.034* [0.018] 0.126 0.010 [0.009]

Share Agricultural Workers -0.039 0.010 [0.012] -0.040 0.011 [0.020] -0.054 -0.003 [0.010]

Share Manufacturing Workers -0.051 -0.010 [0.008] -0.055 -0.013 [0.013] -0.043 -0.006 [0.006]

Share Public Sector Workers 0.016 0.000 [0.003] 0.014 -0.002 [0.005] 0.017 -0.002 [0.003]

Notes: The columns beneath β report the coefficient of separate regressions of the RDD specification in Equation (2).

Dependent variables are specified on the first column, and their average in control towns is reported in the columns beneath

“Control mean”. Refer to Appendix B for a detailed description of each of these variables and their sources. Units of observation

are towns. The sample consists of all towns close to the reform borders of Fucino, Opera Combattenti, Puglia and Lucania

and Sila. We report estimates for the preferred bandwidth (25 Km) and two alternative bandwidths (10 Km and 50 Km). In

Panel A, the sample is approximately 14% smaller due to missing data in Medici (1948). The columns beneath “[s.e.]” report

heteroschedastic robust standard errors. *p<0.1, **p<0.05, ***p<0.01.

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D.6 SUTVA

Table D.3: RDD with heterogeneity.

Christian Democrats Communists

(1) (2) (3) (4) (5) (6)

Post 1951 ×Treatment 0.040∗∗∗ -0.013 0.048 -0.032∗∗ -0.096∗∗ 0.013

[0.013] [0.049] [0.039] [0.013] [0.045] [0.042]

Share agricultural workers 0.015 -0.025

[0.034] [0.037]

Share agricultural workers × Treatment 0.077 0.095

[0.084] [0.070]

Share of town limit on reform border 0.073 -0.030

[0.051] [0.056]

Share of town limit on reform border × Treatment 0.014 -0.086

[0.114] [0.096]

Mean Y Control Group 0.36 0.36 0.31 0.33 0.33 0.38

Observations 1929 1925 620 1929 1925 620

Notes: The Table reports coefficients from Equation (3), which controls for year × reform area and town fixed effects. Post = 1 for elections

after the land reform (1953-58). There are 2 elections before the reform: 1946 and 1948. Column 1 and 4: baseline (no heterogeneity). Column

2 and 5: RDD with heterogeneity in share of agricultural workers. Column 3 and 6: RDD with heterogeneity in share of town limits touching

the reform border. Columns 1-3: dependent variable is Christian Democrat (DC) vote share. Columns 4-6: dependent variable is Communist

(PCI) vote share. For PCI we use the vote share of the Popular Democratic Front (FDP) in 1948. Electoral data are from Corbetta and Piretti

(2009). Share of agricultural workers is from ISTAT (1955a). Units of observation are town-years. Columns 1-2 and 4-5: the sample consists

of all towns within 25 Km to the reform borders of Delta Padano and Maremma. Column 3 and 6: the sample consists of all towns touching

the border of either Maremma or Delta Padano. Standard errors clustered at the town level in parentheses. *p<0.1, **p<0.05, ***p<0.01.

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Table D.4: Donut Panel RDD.

Christian Democrats Communist Party

(1) (2) (3) (4) (5) (6) (7) (8)

All Donut: 1.5 km Donut: 2 km Donut: 2.5 km All Donut: 1.5 km Donut: 2 km Donut: 2.5 km

Treatment × 1950s 0.041∗∗∗ 0.033∗∗∗ 0.031∗∗ 0.038∗∗∗ -0.032∗∗ -0.049∗∗∗ -0.048∗∗∗ -0.046∗∗∗

[0.013] [0.012] [0.012] [0.013] [0.013] [0.014] [0.014] [0.015]

Treatment × 1960s 0.037∗∗ 0.032∗∗ 0.029∗∗ 0.034∗∗ -0.036∗∗ -0.047∗∗∗ -0.045∗∗∗ -0.042∗∗

[0.016] [0.015] [0.015] [0.016] [0.015] [0.016] [0.017] [0.018]

Treatment × 1970s 0.047∗∗∗ 0.046∗∗∗ 0.043∗∗ 0.042∗∗ -0.034∗∗ -0.049∗∗∗ -0.046∗∗∗ -0.038∗∗

[0.016] [0.017] [0.017] [0.018] [0.016] [0.017] [0.017] [0.017]

Treatment × 1980s 0.048∗∗∗ 0.052∗∗∗ 0.050∗∗∗ 0.053∗∗∗ -0.024 -0.043∗∗ -0.040∗∗ -0.028

[0.018] [0.018] [0.019] [0.020] [0.019] [0.019] [0.020] [0.019]

Mean Y Control Group 0.36 0.36 0.36 0.36 0.33 0.33 0.33 0.33

Number of Towns 490 471 461 444 490 471 461 444

Observations 5838 5615 5495 5291 5838 5615 5495 5291

Notes: The Table reports coefficients βt from the panel RDD Equation (1), which controls for year × reform area and town fixed effects.

We include the 1992 election in the 1980s decade. The omitted category is the β of the elections of 1946 and 1948. Columns 1-4: dependent

variable is Christian Democrat (DC) vote share. Columns 5-8: dependent variable is Communist (PCI) vote share. For PCI we use the vote

share of the Popular Democratic Front (FDP) in 1948 and the vote share for the Democratic Party of the Left (PDS) in 1992. Electoral data

are from Corbetta and Piretti (2009). Units of observation are town-years. Column 1 and 5: baseline; the sample consists of all towns within

25 Km to the reform borders of Delta Padano and Maremma. Columns 2-4 and 6-8: “donut” RDD; the sample consists of all towns within 25

Km but farther than 1.5, 2 and 2.5 km from the reform border. Standard errors clustered at the town level in parentheses. *p<0.1, **p<0.05,

***p<0.01.

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D.7 Migration

Figure D.7.1: Absolute Number of Votes: Panel RDD Coefficients

-40%

-30%

-20%

-10%

0%

+10%

1946

1948

1953

1958

1963

1968

1972

1976

1979

1983

1987

1992

Election year

A. Treatment effect on log eligible voters

-30%

-20%

-10%

0%

+10%

+20%

1946

1948

1953

1958

1963

1968

1972

1976

1979

1983

1987

1992

Election year

B. Treatment effect on log DC votes

-60%

-40%

-20%

0%

+20%

1946

1948

1953

1958

1963

1968

1972

1976

1979

1983

1987

1992

Election year

C. Treatment effect on log PCI votes

Notes: The Panels display coefficients βt from the panel RDD Equation (1), which controls for year × reform area and town fixed effects.

The omitted category is the β of 1948. Panel A: dependent variable is log of eligible voters. Panel B: dependent variable is log of Christian

Democrat (DC) votes. Panel C: dependent variable is log of Communists (PCI) votes. For PCI we use the vote share of the Popular Democratic

Front (FDP) in 1948 and the vote share for the Democratic Party of the Left (PDS) in 1992. Electoral data are from Corbetta and Piretti

(2009). Units of observation are town-years. The sample consists of all towns within 25 Km from the reform borders of Delta Padano and

Maremma. The vertical lines mark the 1951 land reform. We estimate standard errors clustered at the town level and plot 95% confidence

intervals as bars around the coefficients.

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Table D.5: Population Composition

Share workers in Labor force Share population aged

agriculture manufacturing participation Share males 0-20 21-45 46-65 >65

(1) (2) (3) (4) (5) (6) (7) (8)

Treatment × 1961 -0.025 0.006 -0.020 -0.001 -0.003 -0.003 0.003 0.004

[0.019] [0.009] [0.014] [0.002] [0.004] [0.004] [0.004] [0.003]

Treatment × 1971 -0.030 0.005 -0.021 -0.003 -0.001 0.002 0.005 0.005

[0.025] [0.016] [0.014] [0.002] [0.006] [0.005] [0.006] [0.005]

Treatment × 1981 -0.011 -0.010 -0.064∗∗ -0.004 -0.006 -0.005 0.001 0.010

[0.029] [0.020] [0.032] [0.002] [0.008] [0.008] [0.006] [0.009]

Treatment × 1991 0.008 -0.027 -0.050 -0.004 -0.002 -0.009 0.002 0.012

[0.032] [0.021] [0.032] [0.003] [0.007] [0.009] [0.005] [0.010]

Treatment × 2001 0.008 -0.019 0.001 -0.004 -0.006 -0.013 0.003 0.016

[0.033] [0.021] [0.015] [0.003] [0.007] [0.009] [0.006] [0.011]

Mean Y Control Group 0.30 0.23 0.60 0.50 0.25 0.33 0.23 0.14

Number of Towns 490 490 490 490 490 490 490 490

Observations 2939 2939 2939 2940 2940 2940 2940 2940

Notes: The Table reports coefficients βt from the panel RDD Equation (1), which controls for year × reform area and town fixed effects.

Column 1 and 2: dependent variable is share of workers employed in agriculture and manufacturing. Column 3: dependent variable is share

of people in the labor force. Column 4: dependent variable is share of males in the population. Columns 5-8: dependent variable is share of

people within specified age groups. The omitted category is the β of 1951. Source is the decadal population censuses (ISTAT, 1937, 1955a,

1965, 1974, 1985, 1995, 2005). Units of observation are town-years. The sample consists of all towns within 25 Km to the reform borders of

Delta Padano and Maremma. Standard errors clustered at the town level in parentheses. *p<0.1, **p<0.05, ***p<0.01.

77


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