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Politics and Finance in Spanish Municipalities

Author

Listed:
  • Nuria Boch Roca

    (University of Barcelona)

  • Javier Suárez Pandiello

    (Universidad de Oviedo)

Abstract

This paper undertakes an analysis of the Spanish local governments from the perspective of public choice theory. A set of hypotheses from a theoretical analysis is examined including alternative modes of public management, the possible use of financing instruments that generate fiscal illusion and the influence of certain pressure groups on the size of the municipal budget. We work with a sample of 140 Spanish municipalities with more than 50,000 inhabitants for the period 2002-2010. Our results support an (expansive) impact of the construction sector and the fiscal illusion hypothesis. Most controversially, our evaluation of the management modes seems to indicate that the indirect modes of public management adopted by local councils do represent attempts to escape from the rigid corsets that administrative legislation set out.

Suggested Citation

  • Nuria Boch Roca & Javier Suárez Pandiello, 2015. "Politics and Finance in Spanish Municipalities," Hacienda Pública Española / Review of Public Economics, IEF, vol. 212(1), pages 51-66, March.
    • Handle: RePEc:hpe:journl:y:2015:v:212:i:1:p:51-66
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    References listed on IDEAS

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    Cited by:

    1. Patricia KAPLANOVA, 2016. "Public Goods as Factors of a Local Economic Development in Slovakia," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2016(26), pages 6-24, June.

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    More about this item

    Keywords

    Politics; Public Choice; Local Government Management; Municipalities; Local Finance.;
    All these keywords.

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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