Εμπειρική διερεύνηση των παραγόντων που επηρεάζουν την οικονομική συμπεριφορά των δήμων

Abstract

The subject of this paper is to test the determinants of Greek local public spending. The Greek state is the most centralized European country and the Greek Local Authorities have a very limited power. Pro rata the scientific researches in the subject of local finance are very limited. We use an Unbalanced Panel Data sample of five years for all Greek communities
(Δήμοι). We use a Two-way Error Component Regression Model for all the country and for local authorities with population: a) Larger than 50.000 inhabitants. b) From 10.000 to 50.000 inhabitants and c) For less than 10.000 inhabitants. We find evidence of criteria which are possible to use in central grants redistribution. We also show that the Greek local government behaviour is very different between the various demographic clusters.

JEL Classification: H7