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What drives local government spending in Spain? A dynamic spatial panel approach

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  • Vicente Rios
  • Pedro Pascual
  • Fermín Cabases

Abstract

What drives local government spending in Spain? A dynamic spatial panel approach. Spatial Economic Analysis. This paper extends traditional spatial spillover models of government spending by including dynamic effects and exogenous interaction effects. Using annual data for a sample of 3032 Spanish municipalities during 2000–12, we estimate a dynamic spatial Durbin panel data model to quantify the relevance of spatial spillovers and diffusion effects over time as well as the impact of a variety of spending determinants. We find that government spending at the local level is mainly explained by economic factors, while demographic factors and political factors appear to be less relevant.

Suggested Citation

  • Vicente Rios & Pedro Pascual & Fermín Cabases, 2017. "What drives local government spending in Spain? A dynamic spatial panel approach," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(2-3), pages 230-250, July.
    • Handle: RePEc:taf:specan:v:12:y:2017:i:2-3:p:230-250
    DOI: 10.1080/17421772.2017.1282166
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    5. Vicente Rios & Miriam Hortas-Rico & Pedro Pascual, 2022. "What shapes the flypaper effect? The role of the political environment in the budget process," Local Government Studies, Taylor & Francis Journals, vol. 48(5), pages 793-820, September.
    6. José Marcelo Torres Ortega & Jorge Mario Ortega De la Rosa, 2022. "Flypaper Effect: The Colombian Municipalities Case for 2000-2017," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 97, pages 79-111, July-Dece.
    7. Song, Yang & Liu, Dayu & Wang, Qiaoru, 2021. "Identifying characteristic changes in club convergence of China's urban pollution emission: A spatial-temporal feature analysis," Energy Economics, Elsevier, vol. 98(C).
    8. Ghazali Syamni* & Ichsan, 2018. "The Determinants of Districts/Cities Spending in Aceh Province: An Analysis of Electoral Districts," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 295-298:2.
    9. Maria Teresa Balaguer‐Coll & Isabel Narbón‐Perpiñá & Jesús Peiró‐Palomino & Emili Tortosa‐Ausina, 2022. "Quality of government and economic growth at the municipal level: Evidence from Spain," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 96-124, January.
    10. Rios, Vicente & Gianmoena, Lisa, 2018. "Convergence in CO2 emissions: A spatial economic analysis with cross-country interactions," Energy Economics, Elsevier, vol. 75(C), pages 222-238.
    11. Magdalena Karska & Andrzej Torój, 2018. "Strategiczne interakcje przestrzenne między decyzjami wydatkowymi gmin w Polsce w latach 2008–2014," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 53, pages 29-46.
    12. Katarzyna Kopczewska, 2017. "Kumulatywny vs. panelowy model przestrzenny w modelowaniu inwestycji lokalnych polskich gmin w latach 1995–2015," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 47, pages 113-128.
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    14. Torres Ortega, José Marcelo & Ortega De La Rosa, Jorge Mario, 2022. "Efecto flypaper: estudio de caso para los municipios colombianos, periodo 2000-2017," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue No. 97, pages 79-111, May.
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