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The Impact of Fiscal Decentralization on the Composition of Public Expenditure: Panel Data Evidence from Italy

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  • Maria Jennifer Grisorio
  • Francesco Prota

Abstract

G risorio M. J. and P rota F. The impact of fiscal decentralization on the composition of public expenditure: panel data evidence from Italy, Regional Studies . This paper is an original contribution to the understanding of the relationship between fiscal decentralization and public expenditure composition. It studies the effects of the ongoing decentralization process in Italy on the share of different categories of public spending in total expenditure of the Italian regional administrations over the period 1996-2008. The data used allow one to go beyond the usual distinction between current and capital expenditures and to present a functional classification of public expenditures. Through a panel data analysis, the paper shows that the level of decentralization influences the composition of expenditure.

Suggested Citation

  • Maria Jennifer Grisorio & Francesco Prota, 2015. "The Impact of Fiscal Decentralization on the Composition of Public Expenditure: Panel Data Evidence from Italy," Regional Studies, Taylor & Francis Journals, vol. 49(12), pages 1941-1956, December.
    • Handle: RePEc:taf:regstd:v:49:y:2015:i:12:p:1941-1956
    DOI: 10.1080/00343404.2013.859665
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    1. Kappeler, Andreas & Solé-Ollé, Albert & Stephan, Andreas & Välilä, Timo, 2013. "Does fiscal decentralization foster regional investment in productive infrastructure?," European Journal of Political Economy, Elsevier, vol. 31(C), pages 15-25.
    2. Pierre-Richard Agénor, 2012. "Infrastructure, Public Education And Growth With Congestion Costs," Bulletin of Economic Research, Wiley Blackwell, vol. 64(4), pages 449-469, October.
    3. Valter Di Giacinto & Giacinto Micucci & Pasqualino Montanaro, 2010. "Dynamic Macroeconomic Effects of Public Capital: Evidence from Regional Italian Data," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 69(1), pages 29-66, April.
    4. Kappeler, Andreas & Solé-Ollé, Albert & Stephan, Andreas & Välilä, Timo, 2013. "Does fiscal decentralization foster regional investment in productive infrastructure?," European Journal of Political Economy, Elsevier, vol. 31(C), pages 15-25.
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