publication . Research . 2013

Should large Spanish municipalities be financially compensated? Costs and benefits of being a capital/central municipality [WP-IEB]

Bosch Roca, Núria; Espasa Queralt, Marta; Montolio, Daniel;
Open Access English
  • Published: 01 Jan 2013
  • Publisher: Institut d’Economia de Barcelona
  • Country: Spain
Abstract
This paper analyse 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 and capital costs are understood to result from the presence of regional and/or central government institutions in the municipality. However, these two qualities might also be beneficial to municipalities, resulting in a direct increase in their fiscal capacity. Here, by estimating an equation of the expenditure needs and the fiscal capacity of Spanish municipalities with more than 75,000 inhabitants, we find that t...
Subjects
free text keywords: Administració local, Finances municipals, Anàlisi cost-benefici, Local government, Municipal finance, Cost effectiveness
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