Does Public Spending Improve Citizens’ Quality of Life? An Analysis of Municipalities’ Leisure Supply

Abstract: This paper offers new evidence regarding the impact of public spending on the supply of leisure services on citizens’ spare-time quality of life. Using data from 103 Italian capital municipalities covering the period 2007–2010, the analysis revealed that public spending on leisure impacted spare-time quality of life in various ways, depending on the category of spending. Spending for tourism essentially followed an upward path, linearly enhancing citizens’ spare-time quality of life. Surprisingly, municipalities’ spending on sport- and culture-related services had a non-linear impact. Hence, spending on sports within a maximum threshold reveals a positive impact on spare-time quality of life, whereas passing over a minimum level of public spending for culture-related projects had a positive effect. This paper provides helpful suggestions for policymakers who approach decisions that address whether it is worth spending on leisure, which is typically a non-basic need but one that must be properly satisfied by municipalities in today’s service-based society.