The Impact of regional public expenditures on the local decision to spend
2000 (English)In: Regional Science and Urban Economics, ISSN 0166-0462, Vol. 30, no 2, 185-202 p.Article in journal (Refereed) Published
This paper studies the hypothesis that local (municipal) expenditures in part can be explained by the expenditures of the regional (county) government. To accomplish this task, we derive and estimate a model of local public (municipal) spending that is defined conditional on the level of regional public expenditures. The empirical analysis is based on panel data from the Swedish local public sector for the time period 1981–1986. Among the results, we find that the hypothesis that regional expenditures are weakly separable from local expenditures can be rejected. However, we cannot reject the hypothesis that the regional expenditures are weakly exogenous in the local expenditure equation.
Place, publisher, year, edition, pages
2000. Vol. 30, no 2, 185-202 p.
Local public expenditures, Tax base effect, Nonseparability
Research subject Economics
IdentifiersURN: urn:nbn:se:umu:diva-16405DOI: 10.1016/S0166-0462(99)00040-XOAI: oai:DiVA.org:umu-16405DiVA: diva2:156078