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

Domenico Depalo () and Silvia Fedeli

No 139, Working Papers from University of Rome La Sapienza, Department of Public Economics

Abstract: 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.

Keywords: Local public expenditure; cultural expenditure; immigrants; local government choice; Mundlak correction. (search for similar items in EconPapers)
JEL-codes: H72 Z10 C23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cul, nep-geo, nep-mig, nep-tur and nep-ure
Date: 2011-02
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