Public Spending Policies and Budgetary Balances: Evidence from Spanish Municipalities

  • Roberto Cabaleiro-Casal University of Vigo, Lagoas Marcosende s/n, Vigo
  • Enrique Buch-Gómez University of Vigo, Lagoas Marcosende s/n, Vigo
Keywords: spending policy, budgetary balance, fiscal deficit, local government, Spain

Abstract

Unlike the frequent research that analyzes the effects of various demographic, economic and political factors on fiscal deficits of governments, this research focuses on studying whether certain structures of public spending policies are associated with situations of fiscal imbalances. Using a panel data model with endogenous variables and taking into account various socio-economic factors as instruments, we have observed that the spending policies of Basic public services, Social protection and social promotion, Preferential services, and Promotion of economic activity have different significant effects on the position of the budgetary balance in the Spanish municipal governments.

Author Biographies

Roberto Cabaleiro-Casal, University of Vigo, Lagoas Marcosende s/n, Vigo
Associate Professor
Enrique Buch-Gómez, University of Vigo, Lagoas Marcosende s/n, Vigo
Associate Professor

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Published
2015-09-03
Section
Articles