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Overlapping Jurisdictions: Substitutes or Complements?

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  • Turnbull, Geoffrey K
  • Djoundourian, Salpie S
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    Abstract

    This paper presents a simple model of the demand relationship between the activities undertaken by overlapping governments and uses the framework to estimate the relationship betw een municipal and county expenditures. The empirical results reveal a complementary relationship between county and city general expenditures; any public sector expansion effects of monopoly power at the county level will therefore be reinforced by greater municipal spending, further expanding the total size of the local public secto r. On the other hand, changes in county police and roads expenditures appear to have no strong stable impact on municipal police and roads expenditures, respectively, providing no reinforcing or offsetting municipal spending responses to decisions at the county level. Copyright 1993 by Kluwer Academic Publishers

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    Bibliographic Info

    Article provided by Springer in its journal Public Choice.

    Volume (Year): 75 (1993)
    Issue (Month): 3 (March)
    Pages: 231-45

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    Handle: RePEc:kap:pubcho:v:75:y:1993:i:3:p:231-45

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    Web page: http://www.springerlink.com/link.asp?id=100332

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    Cited by:
    1. Hanson, Andrew & Schnier, Kurt & Turnbull, Geoffrey K., 2012. "Drive 'Til You Qualify: Credit quality and household location," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 63-77.
    2. Stephen Billings & Thomas Thibodeau, 2011. "Intrametropolitan Decentralization: Is Government Structure Capitalized in Residential Property Values?," The Journal of Real Estate Finance and Economics, Springer, vol. 42(4), pages 416-450, May.
    3. Marie-Estelle Binet & Alain Guengant & Matthieu Leprince, 2012. "Overlapping jurisdictions and demand for local public services: does spatial heterogeneity matter?," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201213, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    4. Quentin Frère & Matthieu Leprince & Sonia Paty, 2012. "The impact of inter-municipal cooperation on local public spending?," Working Papers 1225, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
    5. Llanto, Gilberto M. & Kelekar, Uma, 2013. "Perspectives on Health Decentralization and Interjurisdictional Competition among Local Governments in the Philippines," Discussion Papers DP 2013-20, Philippine Institute for Development Studies.
    6. Guy Gilbert & Alain Guengant, 2005. "Evaluation of the Equalising Performance of Central Government Financial Assistance to the Communes," Economie et Statistique, Institut National de la Statistique et des Etudes Economiques, vol. 373, pages 81-108, April.
    7. Florence TOUYA, 2009. "Tax Interactions with Asymmetric Information and Nonlinear Instruments," Working Papers 9, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Nov 2009.
    8. Geoffrey Turnbull & Gyusuck Geon, 2006. "Local government internal structure, external constraints and the median voter," Public Choice, Springer, vol. 129(3), pages 487-506, December.

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