IDEAS home Printed from https://ideas.repec.org/a/taf/recsxx/v24y2021i1p219-240.html
   My bibliography  Save this article

The interdependence of investment by different levels of government in a federal context

Author

Listed:
  • Anabel Zárate-Marco
  • Jaime Vallés-Giménez

Abstract

We use the Stochastic Frontier Approach to analyse for the first time the regions’ investment response to the central and local governments’ capital expenditure. The Spanish context is very interesting for this analysis because responsibilities are distributed between the three levels of government in a very interesting dual way: the distribution of spending responsibilities between central and regional governments corresponds to an exclusionary attribution of functions, while between regional and local levels, governments opt for cooperation. Results show that capital expenditure undertaken by the central government in the regions acts as substitute for regional investment, while capital expenditure by local governments appears to complement it. These results should be taken into account by public administrations when designing the distribution of responsibilities between different levels of government and their economic policy aims.

Suggested Citation

  • Anabel Zárate-Marco & Jaime Vallés-Giménez, 2021. "The interdependence of investment by different levels of government in a federal context," Journal of Applied Economics, Taylor & Francis Journals, vol. 24(1), pages 219-240, January.
    • Handle: RePEc:taf:recsxx:v:24:y:2021:i:1:p:219-240
    DOI: 10.1080/15140326.2021.1926188
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15140326.2021.1926188
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15140326.2021.1926188?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:recsxx:v:24:y:2021:i:1:p:219-240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/recs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.