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Does decentralization affect regional public spending in Italy?

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  • Rita De Siano
  • Marcella D'Uva

Abstract

This paper tests the presence of spatial interdendencies of Italian regional public spending and its determinants in the period 1996-2010 through spatial panel models. In particular, the analysis controls for the impact of the reform of the constitutional article no. 117, in the perspective of wider administrative decentralization. Results show that administrative decentralization has greatly increased spatial interdependencies of public spending choices that appear to pass mainly through neighbours’ determinants. Other findings are the presence of congestion and mobility effects, a shift in demand to the private sector especially for education and a positive correlation between left-wing governments and total and general administration expenditures.

Suggested Citation

  • Rita De Siano & Marcella D'Uva, 2013. "Does decentralization affect regional public spending in Italy?," Discussion Papers 1_2013, CRISEI, University of Naples "Parthenope", Italy.
    • Handle: RePEc:crj:dpaper:1_2013
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    File URL: http://www.crisei.uniparthenope.it/wp/materiale/crisei_dp_01_2013.pdf
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    More about this item

    Keywords

    regional public spending; spillover effects; administrative decentralization; spatial econometric analysis;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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