Sources of inequality and public policies. Social conflicts, insurance and labour markets

The fast and effective use of public resources is crucial to economic development. This study examines how institutional quality and administrative capacity influence the speed of public spending across different levels of government. Drawing on a comprehensive dataset of public projects co-financed by European funds from 2010 to 2019, the analysis explores both internal and external administrative factors affecting spending speed. The findings underscore the critical importance of administrative capacity and institutional quality, with administrative capacity serving as a mediator for the effects of institutional quality. The speed of public spending is higher for regional and provincial governments than for municipal governments. Furthermore, the estimates suggest that institutional quality has a greater influence at the lower levels of government, whereas administrative capacity plays a more significant role at the higher levels of government.