Revenues and expenditures in Italian municipalities: a multilevel latent class approach

The statistical register for Public Administrations (REPA) contains information on structural and economic variables on a subset of the Italian PA Institutions. REPA includes different subpopulations, we focus on the subpopulation of municipalities, that are naturally grouped in regions. The economic variables of REPA include accrual and cash values, for both revenues and expenditures. This paper aims to analyse the economic management behaviour of Italian municipalities. To this aim, we adopt a multilevel latent class approach, which allows to simultaneously cluster municipalities and regions in groups with some typical profile starting from the observed economic variables.