Dataset for the paper "Evidence of Public Expenditure Spillovers in Mexico: Measuring Spatial Interactions Among Municipal Governments"

This panel dataset contains annual observations for 860 Mexican municipalities from 2000 to 2021. It includes fiscal, socioeconomic, political, and demographic variables used to study spatial interdependence in public expenditure. Key variables cover total expenditure, capital formation, subsidies, and service use (all in per capita terms), as well as explanatory and control variables such as household income, employment rate, political alignment, migration, federal transfers, taxation, population density, and reelection eligibility. The dataset also contains spatially lagged variables constructed using multiple spatial weight matrices (e.g., Queen contiguity, k-nearest neighbors with k=1 to 15) to facilitate spatial econometric analysis.