Massimiliano Ferraresi

Spillover effects in local public spending

ABSTRACT This paper investigated the fiscal interactions between Italian municipalities over the period 2001–11 and found a positive horizontal interdependence in spending decisions. The results are robust to different specifications of the spatial neighbours and are confirmed by a natural experiment (an earthquake in the Abruzzo region of Italy in 2009) that creates an exogenous variation in the neighbours’ spending. Furthermore, there is no evidence of yardstick competition when one considers political effects, while a negative relationship is found between spatial interaction and the size of the municipality. Thus, it can be concluded that spillover effects drive the strategic interactions in spending decisions.

Does intermunicipal cooperation promote efficiency gains? Evidence from Italian municipal unions

Inter-municipal cooperation is a common way to provide local public services, exploit economies of scale and internalize externalities. However, little is known about possible efficiency gains. We test their existence in terms of local public expenditures reductions, by investigating the Italian experience of municipal unions. We adopt quasi-experimental methodologies using administrative data on municipalities in the Emilia Romagna region. We find that being in a municipal union reduces the total per capita current expenditures by around 5 percent, without affecting the level of local public services. The effect is robust, persistent and increasing up to six years after entrance.

Fiscal needs and standard costs: an empirical analysis for Italian municipalities of Puglia

The law 42/2009 proposes a new financial system of municipal expenditures using fiscal needs estimates. Our work estimates the six main expenditure functions, as defined by law, by identifying need and cost determinants. After estimating standard expenditures we propose two different methods of resource allocation: one on estimated standard needs for a given average cost; and the other on standard estimated cost for a given average need. We use municipal data of Puglia.

Spatial interaction in local expenditures among italian municipalities: evidence from italy 2001-2011

We investigate the existence of spatial interaction in spending decisions among Italian municipalities. We estimate a spatial autoregressive dynamic panel data model, using information on 5,564 Italian municipalities over the period 2001-2011, exploiting their border contiguity as a measure of spatial neighborhood. We find a positive effect of neighboring expenditures on total, capital and current expenditures of a given municipality. We do not find any evidence of yardstick competition when we take account of political effects, while we find a negative relationship between spatial interaction and the size of the municipality for current expenditure. Thus, we conclude that spillover effects drive the strategic interaction.

Switch towards tax centralization in Italy: a wake up for the local political budget cycle

The abolition of the municipal property tax on owner-occupied dwellings accomplished in Italy in 2008 offers a quasi-natural experiment that allows for the identification of the presence of political budget cycles - the incentives for municipalities close to elections to manipulate policy outcome decisions. Our empirical analysis shows that the reform impacted on municipalities that in 2008 were in their pre-electoral year, by expanding the size of their budget in the form of an increase of current expenditure and fees and charges, but this did not occurred in municipalities that experienced their pre-electoral year before 2008.

L’impatto della contabilità euro-compatibile in un’auspicabile evoluzione del patto di stabilità interno

In questo contributo si discute come il saldo utile per individuare l’obiettivo del patto di stabilita interno, calcolato utilizzando la contabilita euro-compatibile, possa portare ad una ripartizione dell’indebitamento consolidato della PA molto diversa da quella che si avrebbe utilizzando la contabilita di competenza mista, attualmente usata per calcolare l’obiettivo del patto di stabilita interno per i comuni. La contabilita euro-compatibile classifica infatti alcune voci rilevanti del conto corrente per cassa, che invece nella contabilita di competenza mista sono classificate per competenza ed inoltre elimina dal conto capitale le voci relative alle partite finanziarie. Si utilizzano i dati dei consuntivi 2009-2011 aggregati per i comuni italiani applicando la contabilita euro-compatibile e quella di competenza mista. Quindi si approfondisce il ruolo delle partite finanziarie e degli aggiustamenti contabili, necessari a raccordare le due contabilita, analizzando la loro distribuzione distinta per zona geografica e per regione: il contributo all’indebitamento varia, sia a livello di comparto comunale, che tra un comune e l’altro a seconda della contabilita utilizzata.