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Public spending interactions and local politics: Empirical evidence from french municipalities

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  • Sonia Paty

    () (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé)

  • Martial Foucault

    (DSP - Département de science politique - Université de Montréal [Montréal])

  • Thierry Madiès

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper aims at testing whether there exist spending interactions between French municipalities by estimating a dynamic panel data model. Our results suggest that there are some interactions between neighbouring municipalities as regards primary and investment expenditures. A positive relationship between municipalities' wage bill and unemployment rates is likely to stress a rise of temporary employment in those municipalities that suffer from social troubles. Further, the estimation results show that these interdependences also exist between cities whose mayors have the same partisan affiliation. Finally, our results confirm the opportunistic behaviour of local governments, which increase all categories of public spending in pre-electoral periods.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Sonia Paty & Martial Foucault & Thierry Madiès, 2008. "Public spending interactions and local politics: Empirical evidence from french municipalities," Post-Print halshs-00418871, HAL.
  • Handle: RePEc:hal:journl:halshs-00418871
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00418871
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    References listed on IDEAS

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    More about this item

    Keywords

    concurrence fiscale; dépenses publiques locales; collectivités locales; économétrie spatiale;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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