Distribution of transfers and soft budget spending behaviors: evidence from Italian regions

This paper examines empirically the strategic interactions among central and subcentral governments when incomplete information forces the subcentral government to form expectations about the amount of transfers that it will receive from the central one. The empirical analysis features a wide array of proxies for transfer expectations and uses an autoregressive modeling technique to estimate them on a sample of 20 Italian Regions for the 1995–2009 time interval. The analysis shows that transfer expectations are a quantitatively important component of local government spending, revealing evidence of soft budget spending behavior.     

Legislature size and government spending in Italian regions: Forecasting the effects of a reform

We analyze the effect of different legislature size on per capita regional expenditure in Italy. According to the theory, legislature size has an indefinite effect on government spending because logrolling and transaction costs may have canceling effects. We find a large and significantly positive effect of the number of legislators. We use these findings to forecast the effects of the increase in the number of legislators that is taking place in some regions: a 10% increase in legislature size commands on average a 12% increase in per capita regional expenditure.     

Interrelationships among public spending preferences: A micro analysis

This paper examines a system of qualitative demand equations for public spending on education, welfare, housing, health, highways, and defense. The demand for public spending for a particular category is hypothesized to be a function of income, tax-price, private benefit measures, and tastes as well as demands for other public expenditure categories. Based on individual survey data, the conditional maximum likelihood estimates of the logit equations are obtained. The results indicate the significant role of tastes, private benefit variables, and tax-prices. In addition, positive rather than negative, demand interrelationships are found to exist. These findings question the validity of the median voter hypothesis as a model for public budget allocation.     

Legislative production and public spending in France

Public Choice - The aim of this article is to help explain the history of the public spending-to-GDP ratio in France by examining the production of laws and regulations. It empirically finds a...     

Public sector unions and public spending

This study examines the influence of public sector unions on the expansion of the public sector. Based on public goods theory, our paper models how unions influence the supply of and demand for public sector activities. On the demand side, public sector unions are special interests which advocate public sector expansion to policy makers; on the supply side, they exert pressure to maintain and expand monopoly powers. Empirical evidence supports the hypothesis that a positive relationship exists between public sector unionism and public spending.     

Partisan politics and public finance: Changes in public spending in the industrialized democracies, 1955–1989

This paper evaluates the role that partisan politics plays in altering public spending levels. The analysis covers over three decades of data on the developments of the public sectors in 16 OECD countries. The results of the analysis lend firm support to the partisan politics model. Of special note is the distinction between the electorate' and the government' ideological preferences and the dominant role that the former plays. The results also suggest, contrary to conventional wisdom, that partisan political influences have not been eliminated with the tightening of linkages to the international economy.     

The effect of school district structure on education spending

This paper develops a theoretical and empirical model of local spending on education that analyzes the effect of institutional structure on education spending. It attempts to determine whether the theory of bureaucratic behavior is consistent with school district spending decisions by testing the hypothesis that the number of school districts in a county has a negative effect on per pupil expenditures. The results are not consistent with the theory, but indicate that a fragmented school district structure serves to increase expenditures.     

From myth to reality: Globalisation and public spending in OECD countries revisited

The prevailing but not unchallenged 'conventional wisdom' in the literature dealing with the impact of globalisation on public spending is that the effects of increased openness can be compensated through the welfare state. Repeatedly, studies have found little evidence for a 'race to the bottom' in taxation or spending. This research note shows that it is premature to conclude that globalisation has no negative impact on public spending. By extending the period of observation into the 2000s, by looking at changes in openness and spending instead of their levels, and by disentangling the effects of openness in the cross-sectional and over-time dimensions of variation, this article shows that the association between increased openness and spending is clearly negative. Although the contribution of this research note is mainly empirical, some theoretical arguments are presented, emphasising the long-term nature and complexity of policy making in the politics of globalisation.     

Voting on public spending: Differences between public employees,transfer recipients,and private workers

Politicians who support higher public spending in the hope of gaining the support of transfer recipients, such as the aged, the unemployed, and those on welfare, have no reason to believe that the strategy will succeed; according to the evidence reviewed here, transfer recipients do not vote much differently on such issues from other voters. State and local employees have shown a clear preference for higher public spending, but their numbers are limited and the relative strength of their preference weak, so that their impact on voting outcomes has been only marginal.     

Graduate education in public policy

Contemporary social transformation and accelerated politicization are inducing and requiring changes in the epistemological structure and the substantive content of the social and political sciences. To accommodate to and to facilitate these changes there is here proposed an interdisciplinary program of graduate education in Public Policy which is designed (1) to aggregate the most relevant materials and usable generalizations of the sociopolitical sciences and (2) to strike a balance between viable theory and tested experience. Although the curriculum is intended to be primarily contemporaneous and futuristic, it incorporates comparative and historical as well as normative and positivistic materials and methods. A variegated and qualified body of students is expected to be recruited for the proposed program as its principal intellectual and creative component.     

All spending is not equal: European Union public spending,policy feedback and citizens’ support for the EU

While public support is central to the problem‐solving capacity of the European Union, we know little about when and why the EU can increase its citizens’ support through spending. Extensive research finds that citizens living in countries that are net beneficiaries of the EU budget are more supportive of the EU, assuming that citizens care equally about all forms of spending. It is argued in this article, however, that the amount of spending is only part of the story. Understanding the effects of spending on support requires a consideration of how transfers are spent. Drawing on policy feedback theories in comparative politics, it is shown that support for the EU is a function of the fit between the spending area and economic need in individuals’ immediate living context. Results from a statistical analysis of EU spending on human capital, infrastructure, agriculture, energy and environmental protection in 127 EU regions over the period 2001–2011 corroborate this argument. As the EU and other international organisations become increasingly publicly contested, the organisations themselves may increasingly try to shore up public support through spending, but they will only be successful under specific conditions.     

Private and public choices in public education: An investigation of trustee effects

The paper applies the concepts of the horizon problem, agency costs, monitoring, and special interest incentives to trustee management of public schools and higher education. We examine whether South Carolina's 1984 Education Improvement Act, a major restructuring of educational organization and spending in South Carolina, is related to the ratio of pupils in private versus public schools. We employ 30 years of county level data in South Carolina, and we uncover several things. There is no statistically credible relation between public school expenditures per pupil and the private school/public school enrollment ratio. However, we do find that the directed changes in rules, organizational structure, and incentives mandated by the 1984 Educational Improvement Act are associated with a reduction in the relative number of children attending private school. We interpret this to mean that the features of the law requiring better accountability and the like were perceived by parents to make for better education while the increased money spent was only a transfer to teachers or some other groups; we find that organization matters more than money.     

Efficiency,equity and girls' education

This article analyses World Bank strategies for education in the context of gender equity. Developing countries face the challenge of expanding education with limited resources. At the same time, promoting gender equity is vital to achieving basic development goals. Appropriate governance strategies are needed to provide education in a way that is cost‐effective and inclusive. Privatisation, decentralisation and citizen participation are three strategies that are promoted by the World Bank to control costs and improve transparency in education. Intended to promote efficiency, these strategies can harm equity. This study compares World Bank strategies to proven effective programs in girls' education. Empirical analysis reveals that while many World Bank projects include effective strategies for girls' education, governance reforms generally do not promote awareness of gender. Implications for expansion of girls' education are discussed. Copyright © 2006 John Wiley & Sons Ltd.     

Political competition and economic performance: evidence from the Italian regions

We verify the predictions of the theoretical literature on the relationship between political competition and economic performance, holding that, when the predominance of an ideological dimension creates a political rent, the party exploiting it selects lower quality politicians whose policy choices worsen economic performance. We examine the sample of 15 Italian Regions from 1980 to 2002 that exploits the institutional reforms of 1995 as an exogenous shock to pre-existing rents. We find evidence that higher political competition improves economic performance, through the choice of more efficiency-oriented policies.     

The role of agencification in achieving value‐for‐money in public spending

Agencification has been pursued globally under the promise of increasing public administration performance. In spite of ample theoretical arguments, the empirical evidence on the causal link between agencification and performance remains scarce and methodologically contested. We contribute to this debate by empirically testing the impacts of agencification across Germany, Spain, and the United Kingdom on value‐for‐money, competitiveness, and timeliness during the period 2006–2016. We use unique administrative datasets, enabling objective and granular measurements of reforms and their effects, employing quasi‐experimental methods. Findings suggest heterogeneous effects both across countries and outcomes. On average, value‐for‐money improves by 2.8% or 1.7 billion EUR over a decade, while outputs and processes change only marginally. Recently agencified organizations barely improve their performance, while older agencies achieve substantial improvements. The three countries' heterogeneous administrative contexts play a critical role as mediating factors, with the biggest changes occurring in higher new public management take‐up countries.