Template-Type: ReDIF-Paper 1.0
Author-Name: Massimiliano Ferraresi Ferraresi
Author-Name-First: Massimiliano Ferraresi
Author-Name-Last: Ferraresi
Author-Name: Giuseppe Migali
Author-Name-First: Giuseppe
Author-Name-Last: Migali
Author-Name: Leonzio Rizzo
Author-Name-First: Leonzio
Author-Name-Last: Rizzo
Author-Name: Francesca Nordi Nordi
Author-Name-First: Francesca Nordi
Author-Name-Last: Nordi
Title: Spatial interaction in local expenditures among Italian municipalities
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.
Creation-Date: 2016
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2016_009.pdf
File-Format: application/pdf
Number: 127328819
Classification-JEL: C23, H72
Keywords: Local public spending interaction, spillovers, yardstick competition, spatial econometrics, dynamic panel data, system GMM
Handle: RePEc:lan:wpaper:127328819