IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v44y2010i8p1067-1083.html
   My bibliography  Save this article

Decentralization and the Composition of Public Expenditure in Spain

Author

Listed:
  • Juan Gonzalez Alegre

Abstract

Gonzalez Alegre J. Decentralization and the composition of public expenditure in Spain, Regional Studies. This paper examines the effects of fiscal decentralization on the economic distribution of public expenditures. Using panel data from the seventeen Spanish regions (1984-2003), it is shown that fiscal decentralization is a crucial determinant of the share of the public budget devoted to capital. The estimation run is based on a model in which the utility of the representative agent from the current public expenditure depends on the distance to the level of the administration that provides it. That could be the cause why decentralized economies experience a higher share of current expenditure in the budget of the public administrations. [image omitted] Gonzalez Alegre J. La decentralisation et la structure des depenses publiques en Espagne, Regional Studies. Cet article cherche a examiner l'impact de la fiscalite decentralisee sur la distribution economique des depenses publiques. A partir des donnees provenant d'une enquete a echantillon constant pour les dix-sept regions d'Espagne (de 1983 a 2003) on demontre que la fiscalite decentralisee s'avere un determinant cle de la part du budget de l'Etat affectee a l'investissement. La serie d'estimations est fondee sur un modele ou l'utilite des depenses publiques dont beneficie l'agent representatif depend de la distance du niveau d'administration qui les octroie. Il pourrait s'en averer que les economies decentralisees font preuve d'une part plus elevee des depenses courantes dans le budget de l'administration publique. Decentralisation fiscale Depenses publiques Capital de l'Etat Gonzalez Alegre J. Dezentralisierung und die Zusammensetzung der offentlichen Ausgaben in Spanien, Regional Studies. In diesem Beitrag untersuchen wir die Auswirkungen einer fiskalen Dezentralisierung auf die wirtschaftliche Verteilung offentlicher Ausgaben. Anhand der Paneldaten von den 17 spanischen Regionen (1984-2003) zeigen wir, dass die fiskale Dezentralisierung einen wesentlichen Determinanten des fur Kapital aufgewendeten Anteils des offentlichen Etats darstellt. Die Schatzungen basieren auf einem Modell, in dem der Nutzen des Vertreters der derzeitigen offentlichen Ausgaben von der Distanz zur Verwaltungsebene abhangt, die diese Ausgaben vornimmt. Dies konnte dazu fuhren, dass dezentralisierte Wirtschaften einen hoheren Anteil offentlicher Ausgaben im Etat der offentlichen Verwaltungen verzeichnen. Fiskale Dezentralisierung Offentliche Ausgaben Offentliches Kapital Gonzalez Alegre J. Descentralizacion y la composicion del gasto publico en Espana, Regional Studies. En este articulo analizamos los efectos de la descentralizacion fiscal en la distribucion economica del gasto publico. A partir de datos de panel de las diecisiete comunidades espanolas (1984-2003) mostramos que la descentralizacion fiscal es un determinante crucial de la participacion del presupuesto publico dedicado al capital. Las estimaciones se basan en un modelo en el que la utilidad del agente representativo del gasto publico actual depende de la distancia al nivel de la administracion que lo ofrece. Esto podria llevar a que las economias descentralizadas registren una participacion mas alta del gasto actual en el presupuesto de las administraciones publicas. Descentralizacion fiscal Gasto publico Capital publico

Suggested Citation

  • Juan Gonzalez Alegre, 2010. "Decentralization and the Composition of Public Expenditure in Spain," Regional Studies, Taylor & Francis Journals, vol. 44(8), pages 1067-1083.
    • Handle: RePEc:taf:regstd:v:44:y:2010:i:8:p:1067-1083
    DOI: 10.1080/00343400903365151
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400903365151
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343400903365151?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.

    References listed on IDEAS

    as
    1. Sturm, Jan-Egbert, 2001. "Determinants of public capital spending in less-developed countries," CCSO Working Papers 200107, University of Groningen, CCSO Centre for Economic Research.
    2. Oates, Wallace E., 1993. "Fiscal Decentralization and Economic Development," National Tax Journal, National Tax Association, vol. 46(2), pages 237-43, June.
    3. Wallace E. Oates & Wallace E. Oates, 2004. "Fiscal Decentralization and Economic Development," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 21, pages 377-383, Edward Elgar Publishing.
    4. Randolph, Susan & Bogetic, Zeljko & Hefley, Dennis, 1996. "Determinants of public expenditure on infrastructure : transportation and communication," Policy Research Working Paper Series 1661, The World Bank.
    5. Stephen R. Bond, 2002. "Dynamic panel data models: a guide to micro data methods and practice," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 141-162, August.
    6. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    7. repec:dgr:rugccs:200107 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Afonso, António & Tovar Jalles, João & Venâncio, Ana, 2024. "Fiscal decentralization and public sector efficiency: Do natural disasters matter?," Economic Modelling, Elsevier, vol. 137(C).
    2. Juan González Alegre, 2010. "Fiscal decentralization and intergovernmental grants: the European regional policy and Spanish autonomous regions," Working Papers 2010/6, Institut d'Economia de Barcelona (IEB).
    3. Daniel Aparicio-Pérez & Maria Teresa Balaguer-Coll & Emili Tortosa-Ausina, 2021. "Politics against Economics: The Case of Spanish Regional Financing," Working Papers 2021/15, Economics Department, Universitat Jaume I, Castellón (Spain).
    4. Ahmad Saleem Tarwneh, 2019. "The Impact of Decentralization Dimensions on Subsidiaries Performance," International Review of Management and Marketing, Econjournals, vol. 9(1), pages 62-71.
    5. Henry Aray & Janeth Pacheco-Delgado, 2022. "Fiscal Decentralization and the Allocation of Public Spending of Subnational Governments. The Case of Ecuador," ThE Papers 22/01, Department of Economic Theory and Economic History of the University of Granada..
    6. Stossberg Sibylle & Blöchliger Hansjörg, 2017. "Fiscal Decentralisation and Income Inequality: Empirical Evidence from OECD Countries," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 237(3), pages 225-273, June.
    7. Juan González-Alegre, 2015. "Does fiscal decentralization affect the effectiveness of intergovernmental grants? European regional policy and Spanish autonomous regions," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 817-847, November.
    8. Daniel Gama e Colombo & Jorge Martinez-Vazquez, 2018. "Fiscal Decentralization and Public R&D Policy: A Country Panel Analysis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1820, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    9. Marta Espasa & Alejandro Esteller-Moré & Toni Mora, 2017. "Is Decentralization Really Welfare Enhancing? Empirical Evidence from Survey Data (1994-2011)," Kyklos, Wiley Blackwell, vol. 70(2), pages 189-219, May.
    10. Yuanshuo Xu & Mildred E. Warner, 2022. "Crowding Out Development: Fiscal Federalism after the Great Recession," Environment and Planning A, , vol. 54(2), pages 311-329, March.
    11. Agnese Sacchi & Simone Salotti, 2016. "A Comprehensive Analysis of Expenditure Decentralization and of the Composition of Local Public Spending," Regional Studies, Taylor & Francis Journals, vol. 50(1), pages 93-109, January.
    12. Iliopoulos, Panagiotis & De Witte, Kristof, 2024. "The expenditure composition and trade-offs in local government budgets," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).
    13. António Afonso & João Tovar Jalles & Ana Venâncio, 2023. "Government Spending and Tax Revenue Decentralization and Public Sector Efficiency: Do Natural Disasters Matter?," CESifo Working Paper Series 10424, CESifo.
    14. Lucia Briamonte & Paolo Piatto & Dario Macaluso & Mariagrazia Rubertucci, 2023. "Trends and support models in public expenditure on agriculture: An italian perspective," Economia agro-alimentare, FrancoAngeli Editore, vol. 25(2), pages 189-220.
    15. Briamonte, Lucia & Piatto, Paolo & Macaluso, Dario & Rubertucci, Mariagrazia, 2023. "Trends and support models in public expenditure on agriculture: An italian perspective," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 25(2), October.
    16. Grażyna Bukowska & Joanna Siwińska, 2016. "Czy konkurencja determinuje wielkość inwestycji gmin miejskich w Polsce?," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 6, pages 95-114.
    17. Sacchi, Agnese & Salotti, Simone, 2014. "The asymmetric nature of fiscal decentralization: theory and practice," MPRA Paper 54506, University Library of Munich, Germany.
    18. International Monetary Fund, 2015. "Romania: Selected Issues," IMF Staff Country Reports 2015/080, International Monetary Fund.
    19. Juan González Alegre, 2010. "Fiscal decentralization and intergovernmental grants: the European regional policy and Spanish autonomous regions," Working Papers 2010/6, Institut d'Economia de Barcelona (IEB).
    20. Moussé Sow & Mr. Ivohasina F Razafimahefa, 2015. "Fiscal Decentralization and the Efficiency of Public Service Delivery," IMF Working Papers 2015/059, International Monetary Fund.
    21. Arze del Granado, F. Javier & Martinez-Vazquez, Jorge & McNab, Robert M., 2012. "Decentralized Governance and Preferences for Public Goods," MPRA Paper 42459, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian Lessmann, 2009. "Fiscal Decentralization and Regional Disparity: Evidence from Cross-Section and Panel Data," Environment and Planning A, , vol. 41(10), pages 2455-2473, October.
    2. Sidra Naeem & Rana Ejaz Ali Khan, 2021. "Fiscal Decentralization and Gender Equality in Developing Economies: Dynamics of Income Groups in Economies and Corruption," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(9), pages 745-761, September.
    3. Sevcan Yesiltas, 2009. "Financing Constraints and Investment: The Case of Turkish Manufacturing Firms," 2009 Meeting Papers 874, Society for Economic Dynamics.
    4. Díez-Esteban, José María & Farinha, Jorge Bento & García-Gómez, Conrado Diego, 2016. "The role of institutional investors in propagating the 2007 financial crisis in Southern Europe," Research in International Business and Finance, Elsevier, vol. 38(C), pages 439-454.
    5. Eleonora Bartoloni, 2013. "Capital structure and innovation: causality and determinants," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(1), pages 111-151, February.
    6. Eicher, Theo S. & Schreiber, Till, 2010. "Structural policies and growth: Time series evidence from a natural experiment," Journal of Development Economics, Elsevier, vol. 91(1), pages 169-179, January.
    7. Martinsson, Gustav, 2010. "Equity financing and innovation: Is Europe different from the United States?," Journal of Banking & Finance, Elsevier, vol. 34(6), pages 1215-1224, June.
    8. Kamilia Loukil, 2020. "Dynamic Panel Data Analysis Of The Impact Of Intellectual Property Rights On Entrepreneurship In Emerging And Developing Countries," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 5(1), pages 40-48, March.
    9. Kieran McQuinn & Karl Whelan, 2007. "Solow ( 1956 ) as a model of cross-country growth dynamics," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 23(1), pages 45-62, Spring.
    10. Yu, Bingxin & Fan, Shenggen & Saurkar, Anuja, 2009. "Does Composition of Government Spending Matter to Economic Growth?," 2009 Conference, August 16-22, 2009, Beijing, China 51684, International Association of Agricultural Economists.
    11. Manthos D. Delis & Sotirios Kokas & Steven Ongena, 2016. "Foreign Ownership and Market Power in Banking: Evidence from a World Sample," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 48(2-3), pages 449-483, March.
    12. Sri Juli Asdiyanti Samuda, 2023. "How Global Value Chains Affect Economic Output And Unemployment: An Empirical Evidence From Asean Countries," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(3), pages 513-538, September.
    13. Marta Marson & Donatella Saccone & Elena Vallino, 2023. "Total trade, cereals trade and undernourishment: new empirical evidence for developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(2), pages 299-332, May.
    14. Jessica M. Mc Lay & Roy Lay-Yee & Barry J. Milne & Peter Davis, 2015. "Regression-Style Models for Parameter Estimation in Dynamic Microsimulation: An Empirical Performance Assessment," International Journal of Microsimulation, International Microsimulation Association, vol. 8(2), pages 83-127.
    15. Philippe Martin & Thierry Mayer & Florian Mayneris, 2008. "Spatial Concentration and Firm-Level Productivity in France," Sciences Po publications 6858, Sciences Po.
    16. Antoni Estevadeordal & Christian Volpe Martincus, 2006. "Specialization and Diverging Manufacturing Structures: The Aftermath of Trade Policy Reforms in Developing Countries," Development Working Papers 220, Centro Studi Luca d'Agliano, University of Milano.
    17. Huy Quang Doan, 2019. "Trade, Institutional Quality and Income: Empirical Evidence for Sub-Saharan Africa," Economies, MDPI, vol. 7(2), pages 1-23, May.
    18. Brito Gaona, Luis Felipe & Iglesias, Emma M., 2018. "Inversión privada, gasto publico e impuestos en la Unión Europea," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 26(1), pages 3-24, Diciembre.
    19. Becker, Anthony D. & Judge, Rebecca P., 2012. "Measuring the Effects of Decoupled Payments on Indica Rice Production Under the 1996 and 2002 Farm Bills," Working Papers 120073, St. Olaf College, Department of Economic.
    20. Lee, Chien-Chiang & Yang, Shih-Jui & Chang, Chi-Hung, 2014. "Non-interest income, profitability, and risk in banking industry: A cross-country analysis," The North American Journal of Economics and Finance, Elsevier, vol. 27(C), pages 48-67.

    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:regstd:v:44:y:2010:i:8:p:1067-1083. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/CRES20 .

    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.