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Spatial effects on local government efficiency

Raffaella Santolini ()

No 432, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: Little attention has been paid to the spatial pattern in local governments' efficiency. This paper intends to fill this gap by conducting an empirical analysis on a sample of 246 Italian municipalities over the decade 1998-2008. The efficiency of the municipal government is measured in terms of the speed of payments for different categories of public spending. Estimation results reveal the presence of spatial interdependence in the speed of payments among the geographically close municipalities, with a greater magnitude for the speed of current outlays. Thus, municipalities mimic the speed with which public spending is carried out by their neighbors.

Keywords: the speed of payments; neighborhood effects; spatial econometrics; Italian municipalities (search for similar items in EconPapers)
JEL-codes: C23 H72 H73 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-eur, nep-geo and nep-ure
Date: 2018-10
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Persistent link: https://EconPapers.repec.org/RePEc:anc:wpaper:432

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