Spatial spillovers in public expenditure on a municipal level in Spain
MetadataShow full item record
Knowledge AreaMétodos Cuantitativos para la Economía y la Empresa
SponsorsWe gratefully acknowledge the contribution of three anonymous reviewers in helping us improve the quality of this paper. Prof. Fernando A. López , grateful for the financial support offered by the projects from Programa de Ayudas a Grupos de Excelencia de la Región de Murcia, Fundación Seneca (#19884-GERM-15) and Ministry of Economy and Competiveness (ECO2015-651758).
Bibliographic CitationFernando A. López & Pedro J. Martínez-Ortiz & Juan-Gabriel Cegarra-Navarro, 2017. "Spatial spillovers in public expenditure on a municipal level in Spain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(1), pages 39-65, January.
State and local budget and expenditures
A key function of local governments is to provide a wide array of public services. The supply of these services has been found to create spatial spillovers among neighbouring municipalities. Although it is generally agreed that spillovers are present in models that explain government expenditures, their type—whether endogenous, exogenous or residual—and sign—whether positive or negative—remain ambiguous. In most cases, a subjective process is used to select the type of spatial regression model used in analysis, with mixed results. Per capita expenditures of ten subprogrammes (Security, Housing, Welfare, Environment, Social services, Employment promotion, Health, Education, Culture and Sport) are analysed for all Spanish municipalities with more than 5000 inhabitants in the 2010–2012 period. A Spatial Seemingly Unrelated Regression methodology in a panel framework is used to incorporate correlation between different subprogrammes and spatial dependence. Our results show that the three ...
- Artículos 
The following license files are associated with this item: