Solé-Ollé, Albert; Sorribas-Navarro, Pilar - In: Applied Economics 44 (2012) 25, pp. 3203-3213
The aim of this article is to analyse whether Spanish municipalities adjust in response to budget shocks and (if so) which elements of the budget they are more likely to adjust. The methodology we use to answer these questions is a Vector Error Correction Model (VECM), estimated with data from a...