Stochastic Frontiers Approach: an Empirical Analysis of Italian Environmental Spending

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Abstract

Using the stochastic frontiers approach (SFA) on a panel of Italian regionaldata, this paper tries to analyse the optimal design of environmental spending. The mainquestion is, so forth, studying centralization vs decentralization of a public economicfunction, such as the protection of the environment, in order to improve the welfare of acountry. Empirical results on Italy are ambiguous: the changing from a centralized to adecentralized government, giving more autonomy to local units, does not highlight aclear improvement in regional economic performance.
Original languageEnglish
Number of pages4
Publication statusPublished - 2012

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