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Outsourcing and public expenditure: an aggregate perspective with regional data

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  • Mar Delgado-Téllez
  • José Federico Geli
  • Enrique Moral-Benito
  • Javier J. Pérez

Abstract

Although the theoretical impact of outsourcing on public spending is ambiguous ex-ante, previous cross-country comparisons point towards a positive impact on aggregate. We build a novel database that allows us to explore the association between outsourcing and public spending among Spanish regions between 2002 and 2018. This approach greatly reduces unobserved heterogeneity and limits concerns about bias in the estimates. Our baseline results point towards a positive association between outsourcing and expenditure. However, our analysis also unmasks important divergences among expenditure categories and economic conditions. The results are robust to the inclusion of efficiency indicators and several controls.

Suggested Citation

  • Mar Delgado-Téllez & José Federico Geli & Enrique Moral-Benito & Javier J. Pérez, 2022. "Outsourcing and public expenditure: an aggregate perspective with regional data," Regional Studies, Taylor & Francis Journals, vol. 56(8), pages 1347-1358, August.
    • Handle: RePEc:taf:regstd:v:56:y:2022:i:8:p:1347-1358
    DOI: 10.1080/00343404.2021.1968364
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    More about this item

    JEL classification:

    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods

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