Determinants of standard expenditure needs

The determinants highlight the characteristics of local governments and measure their weight in the calculation of total expenditure needs. These indicators show the characteristics of the municipality that mostly affect its standard expenditure needs.

In total 66 variables contribute to determine standard expenditure needs and were grouped in 9 aggregates plus 1 residual aggregate (diseconomies of scale, regional differential, input prices, social deprivation and investments)  according to the similar characteristics of the various variables.

The 10 homogeneous groups are: services provided (36.12%), demography (19.37%), traffic and roads (8.81%), real estates (7.07%), resident population (6.41% ), tourism (6.03%), morphology and territory (4.34%), organizational choices (3.26%), local economy (3.03%), other (5.56%).

The variables that mostly affect the determination of expenditure needs are: waste separate collection (€ 28.38 per capita), nursery service users (€ 19.33 per capita), meal service users (€ 13.28 per capita), school transport users (€ 4.19 per capita).

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