TRR 266 Research Seminar with Marco Errico (Tilburg University)

We were delighted to host Marco Errico (Tilburg University) for an AccSus Research Seminar and thank him for an engaging presentation and discussion of his joint work with Stefan J. Huber (Wharton), Delphine Samuels (INSEAD), and Anthony Welsch (Chicago Booth).

The paper, The Role of Own-Source Tax Revenue in Disciplining Local Government Spending, examines how the source of government funding affects public sector efficiency. Exploiting the 2012 Italian IMU reform, the authors show that municipalities relying more heavily on locally raised tax revenue pay less for public works projects without compromising project quality or timeliness. The evidence suggests that greater reliance on own-source tax revenue improves cost management by increasing citizen monitoring and political accountability.

Many thanks to Marco for visiting Frankfurt and to everyone who joined the discussion.

We also gratefully acknowledge funding from the TRR 266 Accounting for Transparency, which supports our research seminar series.