Local Expenditure Interaction in Italian Municipalities: Do Local Council Partnerships Make a Difference?

Ermini, Barbara; Santolini, Raffaella

doi:10.1080/03003930.2010.506979

Cited by 43 publications

(35 citation statements)

References 32 publications

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“…The summary statistics of the above-mentioned variables are reported in table 2. Although in the regression analysis we take the logarithm of both dependent and control variables, to partially remove problems of heteroschedasticity which affect data on public expenditures in the region Marche (Ermini and Santolini, 2010).…”

Section: Datamentioning

confidence: 99%

Political yardstick competition among Italian municipalities on spending decisions

Bartolini

Santolini

2011

Ann Reg Sci

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We investigate the presence of political yardstick competition on current spending decisions in a sample of Italian municipalities. We find significant evidence of yardstick competition when we explicitly account for the domestic stability pact (DSP), a fiscal rule introduced to limit the budget deficit of local administrations. Firstly, we estimate a static specification of a spatial panel model, and then we check for the robustness of our results with a dynamic specification. The static analysis shows that municipalities engage in yardstick competition during pre-election years, whether their are subject to the DSP or not. The dynamic analysis shows that the yardstick hypothesis remains robust only for municipalities not constrained by the DSP.

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Section: Datamentioning

confidence: 99%

Political yardstick competition among Italian municipalities on spending decisions

Bartolini

Santolini

2011

Ann Reg Sci

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“…Lastly, the study that is the closest to ours is led by Ermini and Santolini (2010). They investigate the impact of inter-jurisdictional agreements in Italy on the extent of spending interactions, focusing on specific categories of expenditures.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Intermunicipal Cooperation on Local Public Spending

Frère¹,

Leprince²,

Paty³

2013

Urban Studies

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Abstract:The purpose of this paper is to assess the effects of inter-municipal fiscal cooperation on municipal public spending, based on the French experience. We estimate a model of municipal spending choice using panel data and spatial econometrics for municipalities over the period [1994][1995][1996][1997][1998][1999][2000][2001][2002][2003]. We provide two main results. First, inter-municipal cooperation has no significant impact on the level of municipal public spending, which suggests that cooperation does not achieve its goal of reducing municipal spending by the sharing of local responsibilities. Second, there are no spending interactions between municipalities belonging to the same inter-municipal community. This is in line with the goal assigned to cooperation in terms of internalization of spatial externalities.However, our results show that benefit spillovers remain highly significant outside inter-municipal communities, suggesting that inter-municipal communities remain too small.

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“…Correlational studies have revealed that interactions between public service expenditures by local governments can be driven by various effects, including 1) financial competition between regions (Besley and Coate 2003;Wilson and Wildasin 2004;Sheng and Fu 2006), 2) mimicking that is driven by yardstick competition (Thenbürger 2002;Frederico 2003;Gebremeskel 2012;Caldeira 2012), and 3) positive or negative spillovers (Dalhby 1994;Conley and Dix 1999;Sato 2000;Boadway 2001;Brueckner 2003). Both theory and causal observations suggest that expenditure spillovers are a widespread feature of many services provided by local governments (Ermini and Santolini 2010;Sole-Olle 2006). These earlier findings constitute the basis of our research; however, previous research has focused on the description and statistical analysis of spatial disparities in public services but has ignored spatial correlation in public service supply.…”

Section: Introductionmentioning

confidence: 95%

Spatial spillover and the factors influencing public service supply in Sichuan province, China

2014

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This article examines the spatial characteristics of public service supply and the factors influencing such supply in cities of Sichuan Province, China using spatial-autocorrelation and spatial econometric models with statistical data in 2012. The results demonstrate that expenditures on different types of public services present different spatial autocorrelation patterns. Although the spatial differences in basic public service expenditures are relatively small, a clear fan-shaped spillover to the east can be seen in Chengdu City. Chengdu also shows high clustering of advanced public service expenditures, being a typical core-periphery pattern. Post-earthquake reconstruction expenditures are clustered in the "5.12 Wenchuan earthquake" region and spill over toward cities to the east. The efficiency of public services in the mountainous areas in western Sichuan is low and exhibits a pattern of low-low spatial autocorrelation. The efficiency of public service supply is affected by economic, social, political and geographical factors. Based on the results of this analysis, we recommend a supply strategy that incorporates different types of public services and a specialized public service supply strategy for mountainous areas. Overall public service efficiency should be enhanced by focusing on narrowing the gap in farmers' income among regions and accelerating urbanization. Decision-makers should consider more supportive policies with regard to providing basic public services in mountainous areas to ensure an equalized supply of basic public services. To enhance the efficiency of advanced public service supply, additional growth pole should be encouraged and incentivized; however, investments are required to drive the development of the peripheral regions through regional economic integration. Both software and hardware types of infrastructure are required to supply services efficiently during post-disaster reconstruction.Citation: Song XQ, Deng W, Liu Y (2014) Spatial spillover and the factors influencing public service supply in Sichuan

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Local Expenditure Interaction in Italian Municipalities: Do Local Council Partnerships Make a Difference?

Cited by 43 publications

References 32 publications

Political yardstick competition among Italian municipalities on spending decisions

Political yardstick competition among Italian municipalities on spending decisions

The Impact of Intermunicipal Cooperation on Local Public Spending

Spatial spillover and the factors influencing public service supply in Sichuan province, China

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