全球智库信息集成服务系统(G2TT): DP14106 Local Autonomy and Government Spending Multipliers: Evidence from European Regions

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP14106
	DP14106 Local Autonomy and Government Spending Multipliers: Evidence from European Regions
	Evi Pappa; Akos Valentinyi; Markus Brueckner
发表日期	2019-11-07
出版年	2019
语种	英语
摘要	Abstract Using a panel of 268 European regions during 1990-2014, we document that the degree of local autonomy has a significant effect on the government spending multiplier. Measured with the “Local Autonomy Index” constructed by a panel of experts under the auspices of the European Commission, the estimated effect of regional government spending on regional output is on average close to zero in countries with the lowest degree of local autonomy, while it is around one in countries with the highest degree of local autonomy. Consistent with literature, we find that regional government spending multipliers are state dependent: larger when labor markets are slack and output is below trend than when labor markets are tight and output is above trend. Greater local autonomy increases the multipliers in all states, and more so when labor markets are slack and output is below trend. To explain the empirical findings, we build a DSGE model where both local and central government spending contributes to a public good that enhances productivity of the private sector.
主题	International Macroeconomics and Finance ; Public Economics
关键词	Fiscal decentralization Public spending hypothesis Local autonomy index Elasticity of output to changes in government spending Multipliers New keynesian model of a monetary union
URL	https://cepr.org/publications/dp14106
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/542993
推荐引用方式 GB/T 7714	Evi Pappa,Akos Valentinyi,Markus Brueckner. DP14106 Local Autonomy and Government Spending Multipliers: Evidence from European Regions. 2019.