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Local vs. National Environmental Spending: A Stochastic Frontier Analysis

Author

Listed:
  • Sabrina Auci

    (DEMS Department, University of Palermo, Italy)

  • Annalisa Castelli

    (Economics and Law Department, University of Cassino, Italy)

  • Donatella Vignani

    (ISTAT and Economics and Finance Department, Univ. of Rome Tor Vergata, Italy)

Abstract

This work studies the impact of public environmental spending in a fiscal federalist framework. The main question is studying when the centralization of this public economic function is welfare improving. Applying the Stochastic Frontier Approach (SFA) on Italian, Portuguese and Slovakian data, the paper tries to test this issue. Our results highlight the superiority of centralized environmental spending with respect to the decentralization of this particular public good.

Suggested Citation

  • Sabrina Auci & Annalisa Castelli & Donatella Vignani, 2012. "Local vs. National Environmental Spending: A Stochastic Frontier Analysis," EuroEconomica, Danubius University of Galati, issue 5(31), pages 43-59, December.
  • Handle: RePEc:dug:journl:y:2012:i:5:p:43-59
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