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Spatial interaction model of spillovers from locally provided public services

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Author Info

  • Johan Lundberg

Abstract

Lundberg J. (2006) Spatial interaction model of spillovers from locally provided public services, Regional Studies 40, 631-644. This paper tests the hypotheses that recreational and cultural services provided at the local government level in Sweden are associated with spillovers between municipalities. A representative voter model is derived and the demand for recreational and cultural services is estimated using spatial SUR techniques. The result suggests a negative correlation between recreational and cultural services provided by neighbouring municipalities that indicate that these services are associated with spillovers. In terms of strategic behaviour, this result suggests that these services are strategic substitutes. Moreover, the results provide week evidence that recreational and cultural services provided by local governments are complements. Lundberg J. (2006) Un modele d'interaction geographique des retombees des services publics locaux, Regional Studies 40, 631-644. Cet article cherche a tester l'hypothese suivant: les services de loisirs et culturels locaux en Suede s'expliquent par des retombees intervilles. On construit un modele du voteur type et estime la demande des services de loisirs et culturels a partir des techniques SUR geographiques. Les resultats laissent supposer une correlation faible entre les services de loisirs et culturels fournis par des villes limitrophes, ce qui indique que ces services-la s'expliquent par des retombees. En termes du comportement strategique, ce resultat laisse supposer que ces services sont des substituts strategiques. En outre, les resultats fournissent des preuves faibles quant a la complementarite des services de loisirs et culturels fournis par l'administration locale. Depenses publiques locales Effets externes Econometrie geographique Lundberg J. (2006) Ein Modell raumlicher Wechselwirkung der Nebeneffekte ortlicher Angebote offentlicher Dienstleistungen, Regional Studies 40, 631-644. In diesem Aufsatz wird die These gepruft, dass Erholungs-und kulturelle Angebote der Ortsverwaltungen in Schweden in Verbindung mit Nebeneffekten von einer Gemeinde zur andern zu sehen sind. Es wird ein reprasentatives Wahlermodell entwickelt, und die Nachfrage nach Erholungs-und kulturellen Angeboten mit Hilfe von raumlicher SUR Technik berechnet. Die Ergebnisse legen nahe, dass eine negative Korrelation zwischen Erholungs-und kulturellen Angeboten besteht, die von benachbarten Stadtverwaltungen zur Verfugung gestellt werden, ein Zeichen, dass diese Dienstleistungen Nebenwirkungen haben. In Hinsicht auf strategisches Vorgehen legt dieses Ergebnis nahe, dass solche Angebote Ausweichmoglichkeiten darstellen. Daruberhinaus stellen die Ergebnisse Beweise dar, dass Erholungs-und kulturelle Angebote, die von der Ortsverwaltung organisiert werden, sich komplimentar erganzen. Offentliche Ausgaben der Ortsverwaltung Externalitaten raumliche Okonometrik Lundberg J. (2006) Modelo de interaccion espacial de desbordamientos en servicios publicos, Regional Studies 40, 631-644. En este ensayo comprobamos si es cierta la hipotesis de que los servicios culturales y recreativos que el gobierno sueco ofrece a nivel local estan relacionados con desbordamientos entre los municipios. Obtenemos un modelo representativo de votante y calculamos la demanda aproximada de servicios culturales y recreativos usando tecnicas espaciales SUR. El resultado indica que existe una correlacion negativa entre los servicios culturales y recreativos ofrecidos por los municipios vecinos lo que supone que estos servicios estan relacionados con desbordamientos. En terminos de conducta estrategica, este resultado senala que estos servicios son sustitutos estrategicos. Ademas, los resultados solo ofrecen tenues pruebas de que los servicios culturales y recreativos proporcionados por gobiernos locales son complementarios. Gasto publico local Efectos externos Factores econometricos espaciales

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 40 (2006)
Issue (Month): 6 ()
Pages: 631-644

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Handle: RePEc:taf:regstd:v:40:y:2006:i:6:p:631-644

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Related research

Keywords: Local public expenditures; Externalities; Spatial econometrics;

References

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  1. Raymond J.G.M. Florax & Peter Nijkamp, 2003. "Misspecification in Linear Spatial Regression Models," Tinbergen Institute Discussion Papers 03-081/3, Tinbergen Institute.
  2. Murdoch, James C & Sandler, Todd & Hansen, Laurna, 1991. "An Econometric Technique for Comparing Median Voter and Oligarchy Choice Models of Collective Action: The Case of the NATO Alliance," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 624-31, November.
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  4. Bivand, Roger & Szymanski, Stefan, 1997. "Spatial dependence through local yardstick competition:: theory and testing," Economics Letters, Elsevier, vol. 55(2), pages 257-265, August.
  5. Niklas Hanes, 2002. "Spatial Spillover Effects in the Swedish Local Rescue Services," Regional Studies, Taylor & Francis Journals, vol. 36(5), pages 531-539.
  6. Raymond J.G.M. Florax & Hendrik Folmer & Sergio J. Rey, 2002. "Specification Searches in Spatial Econometrics: The Relevance of Hendry's Methodology," Urban/Regional 0202001, EconWPA.
  7. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
  8. Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, vol. 63(3), pages 280-96, June.
  9. Revelli, Federico, 2002. "Local taxes, national politics and spatial interactions in English district election results," European Journal of Political Economy, Elsevier, vol. 18(2), pages 281-299, June.
  10. Timothy Besley & Anne Case, 1992. "Incumbent Behavior: Vote Seeking, Tax Setting and Yardstick Competition," NBER Working Papers 4041, National Bureau of Economic Research, Inc.
  11. Thomas de Graaff & Raymond J.C.M. Florax & Peter Nijkamp & Aura Reggiani, 2001. "A General Misspecification Test for Spatial Regression Models: Dependence, Heterogeneity, and Nonlinearity," Journal of Regional Science, Wiley Blackwell, vol. 41(2), pages 255-276.
  12. Bivand, Roger & Szymanski, Stefan, 2000. "Modelling the spatial impact of the introduction of Compulsory Competitive Tendering," Regional Science and Urban Economics, Elsevier, vol. 30(2), pages 203-219, March.
  13. Murdoch, James C & Sandler, Todd & Sargent, Keith, 1997. "A Tale of Two Collectives: Sulphur versus Nitrogen Oxides Emission Reduction in Europe," Economica, London School of Economics and Political Science, vol. 64(254), pages 281-301, May.
  14. Case, Anne C. & Rosen, Harvey S. & Hines, James Jr., 1993. "Budget spillovers and fiscal policy interdependence : Evidence from the states," Journal of Public Economics, Elsevier, vol. 52(3), pages 285-307, October.
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Citations

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Cited by:
  1. Chiara Dalle Nogare & Matteo Galizzi, 2011. "The political economy of cultural spending: evidence from Italian cities," Journal of Cultural Economics, Springer, vol. 35(3), pages 203-231, August.
  2. Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer, 2006. "County-level Determinants of local Public Services in Appalachia: A Multivariate Spatial Autoregressive Model Approach," Working Papers 200609, Regional Research Institute, West Virginia University.
  3. Johanna Choumert & Laure Cormier, 2011. "The provision of urban parks: an empirical test of spatial spillovers in an urban area using geographic information systems," The Annals of Regional Science, Springer, vol. 47(2), pages 437-450, October.
  4. Hélia Silva & Linda Gonçalves Veiga & Miguel Portela, 2011. "Strategic Interaction in Local Fiscal Policy: Evidence from Portuguese Municipalities," NIPE Working Papers 23/2011, NIPE - Universidade do Minho.
  5. Lundberg, Johan, 2011. "On the de…nition of W in empirical models of yardstick competition," UmeÃ¥ Economic Studies 832, Umeå University, Department of Economics.
  6. Edmark, Karin, 2007. "Strategic competition in Swedish local spending on childcare, schooling and care for the elderly," Working Paper Series 2007:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  7. Werck, Kristien & Heyndels, Bruno & Geys, Benny, 2007. "The impact of central places on spatial spending patterns: evidence from Flemish local government cultural expenditures," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-10, Social Science Research Center Berlin (WZB).
  8. Claudio A Agostini & Philip Brown & Xiaobo Zhang, 2011. "Neighbor Effects in the Provision of Public Goods in a Young Democracy: Evidence from China," Working Papers wp_008, Adolfo Ibáñez University, School of Government.
  9. Lenka Šťastná, 2009. "Spatial Interdependence of Local Public Expenditures: Selected Evidence from the Czech Republic," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 3(1), pages 007-025, March.
  10. M. Bellinzas, 2004. "Dinamiche demografiche, agglomerazione e determinanti economiche. Il caso italiano," Working Paper CRENoS 200407, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  11. Johanna Choumert & Walid Oueslati & Julien Salanié, 2008. "The effects of spatial spillovers on the provision of urban environmental amenities," Post-Print hal-00729739, HAL.
  12. Moscone, Francesco & Knapp, Martin & Tosetti, Elisa, 2007. "Mental health expenditure in England: A spatial panel approach," Journal of Health Economics, Elsevier, vol. 26(4), pages 842-864, July.

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