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Federalism, Party Competition and Budget Outcome: Empirical Findings on Regional Health Expenditure in Italy

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  • Giardina, Emilio
  • Cavalieri, Marina
  • Guccio, Calogero
  • Mazza, Isidoro

Abstract

In the last decade, Italy has experienced a considerable decentralization of functions to the regions. This transformation has been especially relevant for the National Health System that has de facto assumed a federal system design. The federal reform aimed at disciplining public health expenditure, which drains a substantial share of the budget of Italian regions and is among the main causes of the regional deficits. Political economic analysis, however, suggests that impact of federalism on public expenditure depends on central and local government strategies to win in the electoral competition. Results derived in this preliminary study indicate that political competition actually works as a tool of fiscal discipline; it shows a restraining effect on public health expenditure.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16437.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:16437

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Keywords: Fiscal federalism; local budget; multi-level policy-making; public expenditure; political competition; health economics;

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References

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Cited by:
  1. Nadia Fiorino & Emma Galli & Ilaria Petrarca, 2012. "Corruption and Growth: Evidence from the Italian Regions," European Journal of Government and Economics, Europa Grande, vol. 1(2), pages 126-144, December.
  2. Vincenzo Atella & Federico Belotti & Domenico Depalo & Andrea Piano Mortari, 2013. "Measuring spatial effects in presence of institutional constraints: the case of Italian Local Health Authority expenditure," CEIS Research Paper 278, Tor Vergata University, CEIS, revised 08 May 2013.

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