Factors influencing spending on political governance: evidence from Italian municipalities

Purpose The purpose of this paper is to investigate the factors influencing the expenditure incurred by municipalities for politicians, with a focus on understanding the relationship between political governance and expenditure efficiency. Lack of political trust and the need for a more efficient use of public money generate debate on the expenditure incurred for politicians (remuneration, entertainment expenses, travel, etc.) both at national and local levels. Design/methodology/approach This study uses insights from the public choice theory and the concept of efficiency to formulate hypotheses about the relationship between political governance and efficiency in local government. Findings By applying a panel regression to all Italian municipalities over a 10-year period (more than 67,000 observations), the authors find that the number of politicians, their age and the presence of women negatively affects spending on politicians, while all political parties increase their spending. The authors conclude by highlighting the political and managerial implications of the research and its limitations. Originality/value This paper aims to investigate the relationship between political governance and public spending, trying to extend and enrich the debate on the factors that influence public choices.