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Local vs. National Environmental Spending: A Stochastic Frontier Analysis

Sabrina Auci (), Annalisa Castelli () and Donatella Vignani ()
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Annalisa Castelli: Economics and Law Department, University of Cassino, Italy
Donatella Vignani: ISTAT and Economics and Finance Department, Univ. of Rome Tor Vergata, Italy

EuroEconomica, 2012, issue 5(31), 43-59

Abstract: This work studies the impact of public environmental spending in a fiscal federalist framework. The main question is studying when the centralization of this public economic function is welfare improving. Applying the Stochastic Frontier Approach (SFA) on Italian, Portuguese and Slovakian data, the paper tries to test this issue. Our results highlight the superiority of centralized environmental spending with respect to the decentralization of this particular public good.

Keywords: fiscal federalism; environmental spending; stochastic frontier approach; technical efficiency; levels of government (search for similar items in EconPapers)
Date: 2012
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