Template-Type: ReDIF-Paper 1.0
Author-Name: Floriana Cerniglia - Riccarda Longaretti - Alessandra Michelangeli
Author-Email: floriana.cerniglia@unicatt.it; riccarda.longaretti@unimib.it; alessandra.michelangeli@unimib.it
Title: Decentralization of public expenditure and growth in Italy: Does the composition matter?
Abstract: In this paper we exploit data at regional level on decentralized public expenditure provided by Conti pubblici territoriali from 1996 to 2014 and we decompose decentralized public expenditure into current and capital spending. The aim is to disentangle their specific effect on economic growth. Since literature does not provide unanimous indication about the effect of different component of expenditure on growth, we consider a generalized additive model, which is a semi-parametric estimation method that allows more flexibility than conventional estimation techniques. Our findings show a on-linear effect, that is different according to categories of expenditure. More specifically, the effect of capital expenditure is positive, while, decentralized current expenditure tends to have a negative effect on the rate of economic growth. 
Keywords: decentralization; capital expenditure; current expenditure, growth
Classification-JEL: R11 R12 R23   
Creation-Date: 2017
File-URL: http://centridiricerca.unicatt.it/cranec-Cerniglia-Longaretti-MichelangeliDEF.pdf
File-Format: Application/PDF
Number: crn1704        
Handle: RePEc:crn:wpaper:crn1704