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Interactions in Local Governments' Spending Decisions: Evidence from Portugal
Costa H., Gonçalves Veiga L. and Portela M. Interactions in local governments' spending decisions: evidence from Portugal, Regional Studies. This paper aims to analyse the degree of interaction between Portuguese municipalities' expenditure levels by estimating a dynamic panel model, based on jurisdictional reaction functions. The analysis is performed for all 278 Portuguese mainland municipalities from 1986 to 2006, using alternative ways to measure neighbourhood. Results indicate that local governments' spending decisions are significantly and positively influenced by the actions of neighbouring municipalities. Attempts to identify the sources of interaction allow it to be concluded that they are due to spillovers that require coordination in expenditure items and to mimicking behaviour possibly to attract households and firms.
Interactions in Local Governments' Spending Decisions: Evidence from Portugal
Costa H., Gonçalves Veiga L. and Portela M. Interactions in local governments' spending decisions: evidence from Portugal, Regional Studies. This paper aims to analyse the degree of interaction between Portuguese municipalities' expenditure levels by estimating a dynamic panel model, based on jurisdictional reaction functions. The analysis is performed for all 278 Portuguese mainland municipalities from 1986 to 2006, using alternative ways to measure neighbourhood. Results indicate that local governments' spending decisions are significantly and positively influenced by the actions of neighbouring municipalities. Attempts to identify the sources of interaction allow it to be concluded that they are due to spillovers that require coordination in expenditure items and to mimicking behaviour possibly to attract households and firms.
Interactions in Local Governments' Spending Decisions: Evidence from Portugal
Costa, Hélia (author) / Veiga, Linda Gonçalves (author) / Portela, Miguel (author)
Regional Studies ; 49 ; 1441-1456
2015-09-02
16 pages
Article (Journal)
Electronic Resource
English
Spending interactions , Local government , Spatial econometrics , Dynamic panel data , 支出互动 , 地方政府 , 空间总体经济学 , 动态面板资料 , Interaction des dépenses , Adminstration municipale , Économétrie spatiale , Données à échantillon constant dynamiques , Wechselwirkungen bei Ausgaben , Kommunalbehörden , Räumliche Ökonometrie , Dynamische Paneldaten , Interacciones de gastos , Gobierno local , Factores econométricos espaciales , Datos de panel dinámico , C , C2 , C23 , H , H7 , R , R1
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