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Who do you blame in local finance? An analysis of municipal financing in Italy

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  • Massimo Bordignon

    ()
    (DISCE, Università Cattolica)

  • Santino Piazza

    ()
    (DISCE, Università Cattolica)

Abstract

A 1999 reform allowed Italian Mayors to partially substitute a more accountable source of tax revenue (the property tax) with a less trans- parent one (a surcharge on the personal income tax). Theoretical anal- ysis suggests this should give incompetent Mayors a less costly way to hide themselves, so allowing them to be more easily re-elected. An em- pirical analysis on Piedmont municipalities conrms these hypotheses.

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File URL: http://www.unicatt.it/Istituti/EconomiaFinanza/Quaderni/ief0094.pdf
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Bibliographic Info

Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni dell'Istituto di Economia e Finanza with number ief0094.

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Length: 51
Date of creation: May 2010
Date of revision:
Handle: RePEc:ctc:serie3:ief0094

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Web page: http://www.unicatt.it/Istituti/EconomiaFinanza
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Keywords: Partial decentralization; fiscal federalism; transparency; political behavior.;

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Cited by:
  1. Michael Funke & Yu-Fu Chen, 2010. "Global warming and extreme events: Rethinking the timing and intensity of environment policy," Quantitative Macroeconomics Working Papers 21007b, Hamburg University, Department of Economics.
  2. Paul Smoke, 2013. "Why Theory and Practice are Different: The Gap Between Principles and Reality in Subnational Revenue Systems," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1313, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  3. Bracco, Emanuele & Porcelli, Francesco & Redoano, Michela, 2013. "Political Competition, Tax Salience and Accountability: Theory and Some Evidence from Italy," CAGE Online Working Paper Series 126, Competitive Advantage in the Global Economy (CAGE).
  4. Giuseppe Mastromatteo, 2011. "The Debate on the Crisis: Recent Reappraisals of the Concept of Functional Finance," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0105, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  5. Sandro Brusco & Luca Colombo & Umberto Galmarini, 2010. "Local Governments Tax Autonomy, Lobbying, and Welfare," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0097, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  6. Giuseppe Mastromatteo, 2011. "H.P. Minsky And Policies To Countervail Crises," DISCE - Quaderni dell'Istituto di Economia e Finanza ief0102, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).

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