|| PhDr. Lenka Šťastná Ph.D., |
||IES Working Papers
|ISSN / ISBN:
||IES Working Papers 12/2009
||spillovers, fiscal competition, local public finance
||C72, H77, R12
||Šťastná, L. (2009). “ Spatial Interdependence of Local Public Expenditures: Selected Evidence from the Czech Republic ” IES Working Paper 12/2009. IES FSV. Charles University.
|| GACR 402/08/0501 (2008-2010) Political Economy of Public Spending
GAUK 3121/2008 Local Expenditures in the Czech Republic
||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.