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

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  • Santolini, Raffaella

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.

Suggested Citation

Handle: RePEc:eee:paresc:v:87:y:2008:i:3:p:431-452
DOI: 10.1111/j.1435-5957.2008.00201.x
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JEL classification:

  • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
  • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
  • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
  • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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