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Fiscal decentralization and spillover effects of local government public spending: the case of Italy

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  • Rita De Siano
  • Marcella D’Uva

Abstract

Fiscal decentralization and spillover effects of local government public spending: the case of Italy. Regional Studies. This paper investigates the presence of spatial interdependencies in the regional public expenditure decision process and the impact of fiscal decentralization on its determinants. The analysis refers to the constitutional reform concluded in Italy in 2001 that redefined the legislative powers of the regions and their sectoral competence. The results highlight the opportunistic behaviour of regional governments in sectors where they can benefit from neighbours’ public expenditure spillovers. Other findings comprise the presence of congestion and mobility effects, a shift in demand to the private sector, except for education, and the mobility of individuals towards richer regions.

Suggested Citation

  • Rita De Siano & Marcella D’Uva, 2017. "Fiscal decentralization and spillover effects of local government public spending: the case of Italy," Regional Studies, Taylor & Francis Journals, vol. 51(10), pages 1507-1517, October.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:10:p:1507-1517
    DOI: 10.1080/00343404.2016.1208814
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    Cited by:

    1. Francesco Simone Lucidi, 2023. "The misalignment of fiscal multipliers in Italian regions," Regional Studies, Taylor & Francis Journals, vol. 57(10), pages 2073-2086, October.
    2. Bui, Duy Tung & Nguyen , Canh Phuc & Dinh , Thanh Su, 2021. "Fiscal Decentralisation and Externalities on Economic Growth: Spatial-provincial evidence from Vietnam," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 46(4), pages 31-64, December.
    3. Feng, Suling & Sui, Bo & Liu, Huimin & Li, Guoxiang, 2020. "Environmental decentralization and innovation in China," Economic Modelling, Elsevier, vol. 93(C), pages 660-674.
    4. Maria Alessandra Antonelli & Giorgia Marini, 2023. "Good health with good institutions. An empirical analysis for italian regions," Public Finance Research Papers 61, Istituto di Economia e Finanza, DSGE, Sapienza University of Rome.
    5. D’Uva, Marcella, 2017. "Population and industrial pressure on local environmental expenditure in the Italian regions," Land Use Policy, Elsevier, vol. 69(C), pages 386-391.
    6. Marcella D?Uva, 2018. "Environmental Protection in Italian regions: North-Centre vs. South?," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2018(1), pages 25-34.
    7. Cavalieri, Marina & Ferrante, Livio, 2020. "Convergence, decentralization and spatial effects: An analysis of Italian regional health outcomes," Health Policy, Elsevier, vol. 124(2), pages 164-173.

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