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Adjusting to austerity

The public spending responses of regional governments to the budget constraint in Spain and Italy

Bibliographic Data

ID7322934
AuthorsSimon Toubeau (0000-0002-2738-9293, University of Nottingham), Davide Vampa (0000-0001-5983-5422, Aston University, corresponding author)
Year2020
Volume41
Issue3
Pages462-488
Publication date2020-05-19
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Public Policy (JOURNAL)
Journal identifiersISSN: 0143-814X • E-ISSN: 1469-7815
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s0143814x20000094
OpenAlexW3023425993
LanguageEN
Citations received11
References cited79

What are the effects of fiscal imbalances, and austerity, on regional-level spending? To answer this question, we examine an original dataset of yearly spending decisions of regional governments in Italy and Spain between 2003 and 2015. We find that the rise in regional deficits has an important negative effect on regional governments’ spending. The strength of this effect is, however, mitigated by the presence of a left-wing party in regional office. In addition, we uncover an important variation in the extent of cutbacks across policy sectors: regional governments tend to protect the health sector and focus their retrenchment efforts on social assistance and running of public institutions. Partisanship matters here too, as left-wing parties tend to protect healthcare more than their right-wing rivals. These findings bear relevance for understanding the role of partisanship and policy sector in the process of public retrenchment in multi-level states

Austerity · Business · Constraint (computer-aided design · Economic policy · Economics · Economy · Political science · Politics · Public economics · Public sector · Public spending · Regional Policy · Retrenchment · Fiscal Policies and Political Economy · Local Government Finance and Decentralization · Public Administration · Social Policy and Reform Studies

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Unique citing works11
Citations per year2,2
Citation span2021 - 2025 (5)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 11

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