Eugenia, Panicara; Massimiliano, Rigon; Maria, Tomat Gian - In: Economia politica (2014) 3, pp. 451-486
The paper provides an analysis of cyclically-adjusted budget balances of Italian local governments for the period 2002-2007. We find that local government balances appear to be relatively sensitive to the business cycle. In particular, a shock of 1 percent in GDP changes their financial...