@article{Ficarra:302540,
      recid = {302540},
      author = {Ficarra, Matteo},
      title = {Public spending, green growth, and corruption a local  fiscal multiplier analysis for Italian provinces},
      publisher = {[s.n.]},
      address = {[S.l.]. 2024},
      number = {BOOK},
      pages = {58 pages},
      year = {2024},
      abstract = {This paper estimates local fiscal multipliers for green  and non-green public works in Italian provinces, and  disentangles the geographic and institutional  heterogeneities behind them. I construct a fiscal shock by  taking the variation of the difference between actual and  budgeted spending, and I show that it is exogenous to  provincial institutional and macroeconomic conditions.  Using local projections, I find that a €1 increase in  government spending generates negligible GDP losses in the  first two years for overall and non-green projects, while  it increases output by €0.98 after 3 years for green  projects. These results are smaller than the prevailing  estimates in the literature. A triple interaction approach  reveals that overall and non-green multipliers are driven  by southern provinces, while the green multiplier is driven  by the rest of the country, despite the contemporaneous  green multiplier being equal to 1.43 in the south. I link  the heterogeneity to governance characteristics: higher  government effectiveness and institutional quality decrease  the overall and non-green multiplier, while they increase  the green multiplier. Interestingly, corruption positively  affects all multipliers. I show that the effect of  corruption can be explained by its role in easing  bureaucratic and regulatory burdens. These results suggest  that taking national fiscal multipliers at face value can  lead to an overestimation of the impact of fiscal  expansions.},
      url = {http://repository.graduateinstitute.ch/record/302540},
}