Please use this identifier to cite or link to this item: http://hdl.handle.net/2445/68990
Title: Should large Spanish municipalities be financially compensated? Costs and benefits of being a capital/central municipality
Author: Bosch Roca, Núria
Espasa Queralt, Marta
Montolio, Daniel
Keywords: Finançament
Finances municipals
Política de despeses públiques
Funding
Municipal finance
Government spending policy
Issue Date: 1-Dec-2014
Publisher: Instituto de Estudios Fiscales
Abstract: We determine the costs and benefits of being a capital or central municipality, where central costs are understood to be incurred specifically as a result of the problems large municipalities located at the centre of an urban agglomeration face (including costs associated with social issues, immigration, commuting and diseconomies of scale) and capital costs result from the presence of regional and/or central government institutions in the municipality (loss of revenue or increase in expenditure because of activity substitution). However, these two qualities might also be beneficial to municipalities (resulting in a direct increase in their revenue or fiscal capacity). By estimating an equation of the expenditure needs and the fiscal capacity of Spanish municipalities with more than 75,000 inhabitants, we find that the central costs incurred by large municipalities are offset by their greater fiscal capacity, but that the same is not true for municipalities that serve as political/administrative capitals.
Note: Reproducció del document publicat a: 10.7866/HPE-RPE.14.4.2
It is part of: Hacienda Pública Española, 2014, vol. 211, num. 4, p. 67-91
Related resource: http://dx.doi.org/10.7866/HPE-RPE.14.4.2
URI: http://hdl.handle.net/2445/68990
ISSN: 0210-1173
Appears in Collections:Articles publicats en revistes (Economia)

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