On the de…nition of W in empirical models of yardstick competition
AbstractTheoretical models of strategic interaction among local governments are often empirically implemented by the use of spatial econometric techniques. This paper deals with the de…nition of the elements in the spatial weights matrix W in empirical models of strategic interaction among local jurisdictions. In particular, we present empirical evidence that a de…nition based on relative population between jurisdiction i and j can serve as an approximation of the inhabitants living in jurisdiction i's interest of political issues in jurisdiction j. This information could preferable be used in spatial econometric models either testing or controlling for yardstick competition across jurisdictions.
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Bibliographic InfoPaper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 832.
Length: 12 pages
Date of creation: 17 Oct 2011
Date of revision:
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Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
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Spatial econometrics; yardstick competition;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
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