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Heterogeneity in the Cultural Expenditures of Municipalities Evidence from Italian Data (1998-2006)


  • Domenico Depalo
  • Silvia Fedeli


On the basis of a unique dataset referring to all 8,100 Italian municipalities and providing details of their balance-sheets, local governments’ features, socio-demographic and economic indicators, we analyze the determinants of the local cultural expenditures. We exploit the panel nature of the data to explain observable and unobservable heterogeneity. Other than the traditional determinants, we find that per capita cultural expenditures increase with the population size, but decrease with the share of men over total population; immigrants increase local cultural spending only in the long run. The number of years in power of the municipal council also plays a role.

Suggested Citation

  • Domenico Depalo & Silvia Fedeli, 2011. "Heterogeneity in the Cultural Expenditures of Municipalities Evidence from Italian Data (1998-2006)," Working Papers 139, University of Rome La Sapienza, Department of Public Economics.
  • Handle: RePEc:sap:wpaper:wp139

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    References listed on IDEAS

    1. Victor Ginsburgh & David Throsby, 2006. "Handbook of the Eonomics of Art and Culture," ULB Institutional Repository 2013/152412, ULB -- Universite Libre de Bruxelles.
    2. Bruce A Seaman, 2011. "Economic Impact of the Arts," Chapters,in: A Handbook of Cultural Economics, Second Edition, chapter 28 Edward Elgar Publishing.
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    Cited by:

    1. Lars Håkonsen & Knut Løyland, 2016. "Local government allocation of cultural services," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(4), pages 487-528, November.

    More about this item


    Local public expenditure; cultural expenditure; immigrants; local government choice; Mundlak correction.;

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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