Should large Spanish municipalities be financially compensated? Costs and benefits of being a capital/central municipality
This paper analyse the costs and benefits of being a capital or central municipality, where central costs are understood to be incurred specifically as a result of the problems large municipalities located at the centre of an urban agglomeration face and capital costs are understood to result from the presence of regional and/or central government institutions in the municipality. However, these two qualities might also be beneficial to municipalities, resulting in a direct increase in their fiscal capacity. Here, by estimating an equation of the expenditure needs and the fiscal capacity of Spanish municipalities with more than 75,000 inhabitants, we find that the central costs incurred by large municipalities are offset by their greater fiscal capacity, but that the same is not true for municipalities that serve as political/administrative capitals.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Carrer del Tinent Coronel Valenzuela 1-11, 08034 Barcelona|
Phone: 93 403 46 46
Fax: 93 403 98 32
Web page: http://www.ieb.ub.edu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ladd, Helen F. & Bradbury, Katharine L., 1988. "City Taxes and Property Tax Bases," National Tax Journal, National Tax Association, vol. 41(4), pages 503-23, December.
- Richard Hawkins & Matthew N. Murray, 2004. "Explaining Interjurisdictional Variations in Local Sales Tax Yield," Public Finance Review, SAGE Publishing, vol. 32(1), pages 82-104, January.
- Albert Solé Ollé, 2005.
"Expenditure spillovers and fiscal interactions: Empirical evidence from local governments in Spain,"
2005/3, Institut d'Economia de Barcelona (IEB).
- Sole-Olle, Albert, 2006. "Expenditure spillovers and fiscal interactions: Empirical evidence from local governments in Spain," Journal of Urban Economics, Elsevier, vol. 59(1), pages 32-53, January.
- Albert SolÃ©-OllÃ© & NÃºria Bosch, 2005. "On the Relationship between Authority Size and the Costs of Providing Local Services: Lessons for the Design of Intergovernmental Transfers in Spain," Public Finance Review, SAGE Publishing, vol. 33(3), pages 343-384, May.
- Iain McLean & Alistair McMillan, 2003. "The Distribution of Public Expenditure across the UK Regions," Fiscal Studies, Institute for Fiscal Studies, vol. 24(1), pages 45-71, March.
- Brueckner, J.K. & Thisse, J.-F. & Zenou, Y., 1996.
"Why is central Paris rich and downtown Detroit poor ? An amenity-based theory,"
CORE Discussion Papers
1996065, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Brueckner, Jan K. & Thisse, Jacques-Francois & Zenou, Yves, 1999. "Why is central Paris rich and downtown Detroit poor?: An amenity-based theory," European Economic Review, Elsevier, vol. 43(1), pages 91-107, January.
- BRUECKNER, Jan K. & THISSE, Jacques-François & ZENOU, Yves, . "Why is central Paris rich and downtown Detroit poor? An amenity-based theory," CORE Discussion Papers RP 1370, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- David King & Matthew Pashley & Rob Ball, 2004. "An English assessment of Scotland’s education spending needs," Fiscal Studies, Institute for Fiscal Studies, vol. 25(4), pages 439-466, December.
- Rob Ball & David King & David Eiser, 2012. "Assessing the relative health care spending needs of the UK’s devolved territories: a Scottish perspective," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 30(2), pages 322-346, April.
- Arthur Midwinter, 2002. "Territorial Resource Allocation in the UK: A Rejoinder on Needs Assessment," Regional Studies, Taylor & Francis Journals, vol. 36(5), pages 563-567.
When requesting a correction, please mention this item's handle: RePEc:ieb:wpaper:2013/6/doc2013-6. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.