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Public expenditure in time of crisis: are Italian policymakers choosing the right mix?

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  • Maria Jennifer Grisorio
  • Francesco Prota

Abstract

In the “austerity debate” a crucial issue is the composition of fiscal adjustment. This article provides empirical evidence on the relationship between economic crisis episodes and composition of public expenditure by examining the impact of economic crises on the share of different types of public spending in total public expenditure in the Italian regions. Our results suggest that fiscal consolidation strategies have not had growth-friendly composition.

Suggested Citation

  • Maria Jennifer Grisorio & Francesco Prota, 2016. "Public expenditure in time of crisis: are Italian policymakers choosing the right mix?," Working Papers. Collection B: Regional and sectoral economics 1602, Universidade de Vigo, GEN - Governance and Economics research Network.
  • Handle: RePEc:gov:wpregi:1602
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    References listed on IDEAS

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    Cited by:

    1. Adolfo Maza & José Villaverde & María Hierro, 2019. "The 2017 Regional Election in Catalonia: an attempt to understand the pro-independence vote," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(1), pages 1-18, April.
    2. Floriana Cerniglia & Enzo Dia & Andrew Hughes Hallett, 2019. "Tax vs. Debt Management Under Entitlement Spending: a Multicountry Study," Open Economies Review, Springer, vol. 30(3), pages 425-443, July.
    3. Petraglia, Carmelo & Pierucci, Eleonora & Scalera, Domenico, 2020. "Interregional redistribution and risk sharing through public budget. The case of Italy in times of crisis (2000–2016)," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 162-169.

    More about this item

    Keywords

    Economic crisis; composition of government expenditure; panel data.;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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