Massimiliano Ferraresi, Giuseppe Migali, Francesca Nordi, Leonzio Rizzo
{"title":"Spatial Interaction in Local Expenditures Among Italian Municipalities: Evidence from Italy 2001-2011","authors":"Massimiliano Ferraresi, Giuseppe Migali, Francesca Nordi, Leonzio Rizzo","doi":"10.2139/ssrn.2841313","DOIUrl":null,"url":null,"abstract":"We investigate the existence of spatial interaction in spending decisions among Italian municipalities. We estimate a spatial autoregressive dynamic panel data model, using information on 5,564 Italian municipalities over the period 2001-2011, exploiting their border contiguity as a measure of spatial neighborhood. We find a positive effect of neighboring expenditures on total, capital and current expenditures of a given municipality. We do not find any evidence of yardstick competition when we take account of political effects, while we find a negative relationship between spatial interaction and the size of the municipality for current expenditure. Thus, we conclude that spillover effects drive the strategic interaction.","PeriodicalId":410291,"journal":{"name":"ERN: Analytical Models (Topic)","volume":"153 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2016-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"65","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"ERN: Analytical Models (Topic)","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.2841313","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 65
Abstract
We investigate the existence of spatial interaction in spending decisions among Italian municipalities. We estimate a spatial autoregressive dynamic panel data model, using information on 5,564 Italian municipalities over the period 2001-2011, exploiting their border contiguity as a measure of spatial neighborhood. We find a positive effect of neighboring expenditures on total, capital and current expenditures of a given municipality. We do not find any evidence of yardstick competition when we take account of political effects, while we find a negative relationship between spatial interaction and the size of the municipality for current expenditure. Thus, we conclude that spillover effects drive the strategic interaction.
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