Heterogeneity in the Cultural Expenditures of Municipalities: Evidence from Italian Data (1998-2006)

Abstract

On the basis of a unique dataset referring to all 8,100 Italian municipalities and providing details of their balance-sheets, local governments' features, socio-demographic and economic indicators, we analyze the determinants of the local cultural expenditures. We exploit the panel nature of the data to explain observable and unobservable heterogeneity. Other than the traditional determinants, we find that per capita cultural expenditures increase with the population size, but decrease with the share of men over total population; immigrants increase local cultural spending only in the long run. The number of years in power of the municipal council also plays a role.