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‘Keeping up with the (Portuguese) Joneses’—a study on the spatial dependence of municipal expenditure

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  • Paulo Reis Mourao

Abstract

Municipalities tend to replicate the size and the composition of their neighbours’ expenditures, independently of being ruled by left-wing or right-wing parties. This is one important conclusion of the study, which includes spatial dependence to explain the value of Portuguese municipalities’ direct awards. We used observations for the 308 Portuguese municipalities from 2009 to 2015. We then tested this spatial dependence for the mean value (per contract of direct award) and we controlled the results considering the demographic characteristics of each municipality, the political wing of the ruling party at the municipality, and the composition of the municipal expenditures.

Suggested Citation

  • Paulo Reis Mourao, 2019. "‘Keeping up with the (Portuguese) Joneses’—a study on the spatial dependence of municipal expenditure," Applied Economics, Taylor & Francis Journals, vol. 51(34), pages 3689-3709, July.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:34:p:3689-3709
    DOI: 10.1080/00036846.2019.1581914
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    Cited by:

    1. Li Yao & Alex Singleton & Pingjun Sun & Guanpeng Dong, 2021. "The Evolution Characteristics and Influence Mechanism of Chinese Venture Capital Spatial Agglomeration," IJERPH, MDPI, vol. 18(6), pages 1-21, March.
    2. Juan Camilo Fernández-Marín & Nadja Simone Menezes Nery Oliveira & Paulo Mourao, 2022. "The role of policies in transforming regional fiscal structures: an exploratory analysis of spatial data from a policy of fiscal decentralization in Latin America," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-24, December.
    3. Feng Wang & Wenna Fan & Xiangyan Lin & Juan Liu & Xin Ye, 2020. "Does Population Mobility Contribute to Urbanization Convergence? Empirical Evidence from Three Major Urban Agglomerations in China," Sustainability, MDPI, vol. 12(2), pages 1-20, January.
    4. Jordi Sanjuán & Pau Rausell & Vicente Coll & Raül Abeledo, 2020. "Mayors, Using Cultural Expenditure in An Opportunistic Way Improves the Chances of Re-Election, but Do Not Do It: Revisiting Political Budget Cycles," Sustainability, MDPI, vol. 12(21), pages 1-15, October.

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