Federalism, education-related public good and growth when agents are heterogeneous

In this paper we use an endogenous-growth model with human capital and heterogeneous agents to analyse the relationship between fiscal federalism and economic growth. The results show that federalism, which allows education-related public good levels to be tailored to the local distribution of human capital, increases human capital accumulation. This in turn leads to higher rates of growth. The benefits of federalism are stronger, the larger the intra-jurisdiction variance of agents\u2019 human capital

Federalism, Human Capital Accumulation and Inequality

We want to obtain a concise picture on the state of the economic research in this field, and therefore we review a number of studies (theoretical and empirical) that focus – directly or indirectly – on the link between federalism and growth and between federalism and inequalit

Static and dynamic (in)efficiency in public goods provision

We analyze, with a methodological focus, in which cases and under which hypotheses, the dispersion of the distribution of individual demands affects the provision of public goods. We derive implications in terms of static and dynamic (in)efficiency

Decentralization of pubblic expenditure and growth in Italy: does the composition matter?

In this paper we exploit data at regional level on decentralized public expenditure provided by Conti pubblici territoriali from 1996 to 2014 and we decompose decentralized public expenditure into current and capital spending. The aim is to disentangle their specific effect on economic growth. Since literature does not provide unanimous indication about the effect of different component of expenditure on growth, we consider a generalized additive model, which is a semi-parametric estimation method that allows more flexibility than conventional estimation techniques. Our findings show a non-linear effect, that is different according to categories of expenditure. More specifically, the effect of capital expenditure is positive, while, decentralized current expenditure tends to have a negative effect on the rate of economic growth

Decentralization of pubblic expenditure and growth in Italy: does the composition matter?

In this paper we exploit data at regional level on decentralized public expenditure provided by Conti pubblici territoriali from 1996 to 2014 and we decompose decentralized public expenditure into current and capital spending. The aim is to disentangle their specific effect on economic growth. Since literature does not provide unanimous indication about the effect of different component of expenditure on growth, we consider a generalized additive model, which is a semi-parametric estimation method that allows more flexibility than conventional estimation techniques. Our findings show a non-linear effect, that is different according to categories of expenditure. More specifically, the effect of capital expenditure is positive, while, decentralized current expenditure tends to have a negative effect on the rate of economic growth