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A spatial cross-sectional analysis of political trends in Italian municipalities

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  • Raffaella Santolini

Abstract

The aim of this paper is to detect mimicking behaviour in the tax setting of local governments which share similar political ideology. We conduct an empirical investigation of municipalities' cross-sectional data of the Marche region using spatial econometrics models. Discriminating between several sources of fiscal interaction, empirical evidence suggests that municipalities governed by the same coalition tend to implement similar tax rates according to their ideology. Copyright (c) 2008 the author(s). Journal compilation (c) 2008 RSAI.

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  • Raffaella Santolini, 2008. "A spatial cross-sectional analysis of political trends in Italian municipalities," Papers in Regional Science, Wiley Blackwell, vol. 87(3), pages 431-451, August.
  • Handle: RePEc:bla:presci:v:87:y:2008:i:3:p:431-451
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    Cited by:

    1. Benoît LE MAUX & Kristýna DOSTÁLOVÁ & Fabio PADOVANO, 2017. "Ideology and Public Policies: A Quasi-Experimental Test of the Hypothesis that Left-Wing Governments Spend More," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2017-01-ccr, Condorcet Center for political Economy.
    2. Georg Grassmueck & Martin Shields, 2010. "Does government fragmentation enhance or hinder metropolitan economic growth?," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 641-657, August.
    3. Laurent Van Malderen & Marcel Gérard, 2012. "Tax Interaction Among Walloon Municipalities: Is There Room For Partisan Monopoly Effect?," ERSA conference papers ersa12p1051, European Regional Science Association.
    4. Marcel Gérard & Laurent van Malderen, 2012. "Tax Interaction among Walloon Municipalities: Is there Room for Yardstick Competition, Intellectual Trend and Partisan Monopoly Effect?," CESifo Working Paper Series 4025, CESifo Group Munich.
    5. Michael Klien, 2015. "The political side of public utilities: How opportunistic behaviour and yardstick competition shape water prices in Austria," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 869-890, November.
    6. David Bartolini & Raffaella Santolini, 2012. "Political yardstick competition among Italian municipalities on spending decisions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 213-235, August.
    7. Benoît Le Maux & Kristýna Dostálová & Fabio Padovano, 2017. "Ideology or Voters? A Quasi-Experimental Test of Why Left-Wing Governments Spend More," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2017-05-ccr, Condorcet Center for political Economy.
    8. Benoît LE MAUX & Kristýna DOSTÁLOVÁ & Antti MOISIO, 2017. "Do political parties matter? Endogenous fragmentation, partisanship, and local public expenditures in Finland," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2017-02-ccr, Condorcet Center for political Economy.
    9. Laurent Van Malderen & Marcel Gerard, 2013. "Testing yardstick competition through a vote-function: evidence from the Walloon municipalities," Economics and Business Letters, Oviedo University Press, vol. 2(4), pages 206-214.
    10. David Bartolini & Raffaella Santolini, 2009. "Fiscal Rules and the Opportunistic Behaviour of the Incumbent Politician: Evidence from Italian Municipalities," CESifo Working Paper Series 2605, CESifo Group Munich.

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