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Big cities' finance

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  • F. Pica
  • S. Torre

Abstract

This paper argues that the role of big cities is now strongly influenced, inItaly, by ties resulting from unresolved problems concerning the structure, whenfully implemented, of municipal taxes, on the one hand, and the issue of functionsrelating to the LEP (i.e. basic levels of benefits), which municipalities haveto take charge of, on the other side.About the first aspect, articulated proposals are presented, particularly relatedto big cities. About the second aspect, we observe that a substantial partof the services of municipalities is relevant to the basic level of benefits thatmust be ensured on the whole national territory (LEP) - that is care, education,urban public transport, hygiene and urban decor (garbage disposal), watersupply, necropsy and cemetery service. With reference to a group of 14 servicesconsidered relevant, the needs were calculated, against the resources allocatedto them: on average rich towns (i.e. Turin, Milan, Rome) fund the theoreticalneeds as far as 0,96, while poor ones (i.e. Naples, Bari, Palermo) to the extentof 0,57.

Suggested Citation

  • F. Pica & S. Torre, 2013. "Big cities' finance," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1-2, pages 73-98.
    • Handle: RePEc:mul:jqyfkm:doi:10.1432/75232:y:2013:i:1-2:p:73-98
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    Keywords

    municipal services; expenditure and needs;

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