Public Sector Economics, Vol. 42 No. 3, 2018.
Original scientific paper
https://doi.org/10.3326/pse.42.3.5
To what extent do fiscal spending rules affect budget composition?
Wildmer Daniel Gregori Gregori
; European Commission, Joint Research Centre (JRC), Ispra, Italy
Abstract
The aim of this paper is to investigate the extent to which local budget composition reacts to variations in fiscal spending rules. It looks at Italian subnational governments and specific changes in the institutional framework, implementing a difference-in-discontinuities strategy. Results show that when a reduction in current spending is imposed, local authorities direct the cuts towards services. Furthermore, when an increase in capital spending is allowed, there is an increase in spending on infrastructure and local public debt.
Keywords
fiscal rules; public spending; difference-in-discontinuities; local governments
Hrčak ID:
204809
URI
Publication date:
3.9.2018.
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