Budget Structure of Local Governments and Quality of Life in Chilean Cities

Local governments intend to offer a better quality of life; so, their targeting of spending and ability to generate income are relevant. This research uses data from a panel of 93 Chilean cities evaluated for the effects of budget structure on the quality of urban life between 2012–2016. For this, an ordered probit model with random effects is used. The results show a positive impact of municipal spending, permanent income, and investment on the studied cities with differences among the indicator’s dimensions