全球智库信息集成服务系统(G2TT): DP14448 Public Expenditure and Private Firm Performance: Using Religious Denominations for Causal Inference

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP14448
	DP14448 Public Expenditure and Private Firm Performance: Using Religious Denominations for Causal Inference
	Henrique Alpalhão; Marta Lopes; João Pereira dos Santos; José Tavares
发表日期	2020-02-26
出版年	2020
语种	英语
摘要	We investigate the causal relationship between local government expenditure and private firm performance, using the quantity and naming of civil parishes within each municipality as an instrumental variable. Religious denominations are taken as a proxy for strong local identity, which likely increases competition for resources between neighboring parishes. We explore a dataset on the universe of private firms, local government expenditure categories and socio-economic indicators for all mainland Portuguese municipalities, in a period encompassing both normal and crisis times. The number of parishes per municipality, as exogenously set by the central government, and the number of parishes that display religious denominations are both used as instruments that explain local government spending, indirectly impacting firm performance. We find that both display considerable power in determining total primary and current spending, which then positively impacts private firms’ sales and value added. Using religious denominations is found to yield a particularly potent instrument, confirming and expanding the baseline results. In a field that mostly relies on natural experiments for instrumental variable frameworks, our proposed instruments are both easily obtainable and powerful.
主题	Public Economics
关键词	Instrumental variables Local governments Local fiscal multiplier Firm performance Fragmentation Local identity Religion
URL	https://cepr.org/publications/dp14448
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/543346
推荐引用方式 GB/T 7714	Henrique Alpalhão,Marta Lopes,João Pereira dos Santos,et al. DP14448 Public Expenditure and Private Firm Performance: Using Religious Denominations for Causal Inference. 2020.