Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83418
Authors: 
Šťastná, Lenka
Year of Publication: 
2009
Series/Report no.: 
IES Working Paper 12/2009
Abstract: 
Local expenditures in neighbouring municipalities can be spatially interdependent due to spillovers, cooperation effects, competition effects or mimicking. In this paper, we aim to test the spatial interdependence of local public expenditures using data on 205 Czech municipalities. We found positive spatial interdependence in expenditures on housing and culture and negative spatial interdependence for expenditures on industry and infrastructure and environmental protection. Additionally, we observed that political characteristics affect the size of spending; left-wing parties tend to increase expenditures on culture and decrease expenditures on industry and infrastructure; and higher party fragmentation decreases overall capital expenditures and expenditures on housing.
Subjects: 
spillovers
fiscal competition
local public finance
JEL: 
C72
H77
R12
Document Type: 
Working Paper
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