Spillover effects in local public spending

Migali, Giuseppe and Ferraresi, Massimiliano and Rizzo, Leonzio (2018) Spillover effects in local public spending. Regional Studies, 52 (11). pp. 1570-1584. ISSN 0034-3404

Preview

PDF (regstud_accepted)
regstud_accepted.pdf - Accepted Version
Available under License Creative Commons Attribution-NonCommercial.
Download (1MB)

Abstract

This paper investigated the fiscal interactions between Italian municipalities over the period 2001–11 and found a positive horizontal interdependence in spending decisions. The results are robust to different specifications of the spatial neighbours and are confirmed by a natural experiment (an earthquake in the Abruzzo region of Italy in 2009) that creates an exogenous variation in the neighbours’ spending. Furthermore, there is no evidence of yardstick competition when one considers political effects, while a negative relationship is found between spatial interaction and the size of the municipality. Thus, it can be concluded that spillover effects drive the strategic interactions in spending decisions.

Item Type:

Journal Article

Journal or Publication Title:

Regional Studies

Additional Information:

This is an Accepted Manuscript of an article published by Taylor & Francis in Regional Studies on 17/01/2018, available online: http://www.tandfonline.com/10.1080/00343404.2017.1415429

Uncontrolled Keywords:

/dk/atira/pure/subjectarea/asjc/2300/2300

Subjects:

?? local public spending interactionsspilloversyardstick competitionspatial econometricsdynamic panel datanatural disasterinternal and external instrumentsgeneral environmental sciencegeneral social sciencesenvironmental science(all)social sciences(all) ??

Departments:

Lancaster University Management School > Economics

ID Code:

123466

Deposited By:

ep_importer_pure

Deposited On:

16 Feb 2018 10:30

Refereed?:

Yes

Published?:

Published

Last Modified:

02 Oct 2024 00:11

URI:

https://eprints.lancs.ac.uk/id/eprint/123466