Spatial Interdependence of Local Public Expenditures: Selected Evidence from the Czech Republic

Lenka Stastna ()

No 2009/12, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: Local expenditures in neighbouring municipalities can be spatially interdependent due to spillovers, cooperation effects, competition effects or mimicking. In this paper, we aim to test the spatial interdependence of local public expenditures using data on 205 Czech municipalities. We found positive spatial interdependence in expenditures on housing and culture and negative spatial interdependence for expenditures on industry and infrastructure and environmental protection. Additionally, we observed that political characteristics affect the size of spending; left-wing parties tend to increase expenditures on culture and decrease expenditures on industry and infrastructure; and higher party fragmentation decreases overall capital expenditures and expenditures on housing.

Keywords: spillovers; fiscal competition; local public finance (search for similar items in EconPapers)
JEL-codes: C72 H77 R12 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2009-03, Revised 2009-03
New Economics Papers: this item is included in nep-geo, nep-pbe, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Journal Article: Spatial Interdependence of Local Public Expenditures: Selected Evidence from the Czech Republic (2009)
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