Spatial interaction in local expenditures among Italian municipalities:evidence from Italy 2001-2011

Ferraresi, Massimiliano Ferraresi and Migali, Giuseppe and Rizzo, Leonzio and Nordi, Francesca Nordi (2016) Spatial interaction in local expenditures among Italian municipalities:evidence from Italy 2001-2011. Working Paper. Lancaster University, Department of Economics, Lancaster.

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Abstract

We estimate a spatial autoregressive dynamic panel data model, using information on 5,564 Italian municipalities over the period 2001-2011, exploiting their border contiguity as a measure of spatial neighborhood. We find a positive and statistically significant effect of neighboring expenditures on total, capital and current expenditures of a given municipality. We do not find any evidence of yardstick competition when we take account of political effects, while we do find a negative relationship between spatial interaction and the size of the municipality for current expenditure. Thus, we conclude that spillover effects drive the strategic interaction.

Item Type:
Monograph (Working Paper)
Subjects:
ID Code:
81420
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Deposited On:
16 Sep 2016 08:38
Refereed?:
No
Published?:
Published
Last Modified:
19 Sep 2020 23:50