Les biens publics locaux en Wallonie: effet d'imitation ou de débordement?
The study applies spatial econometrics to the expenditures of the 262 municipalities of the Walloon Region (Belgium). It models the influence of expenditures from neighbouring municipalities on one given municipality. The independent variable coefficient is an indicator of a substitution-spillover effect when negative, and an indicator of a expenditure competition effect when positive. When we consider the municipalities of the Walloon Region, under our assumptions, the coefficient is significantly different from 0, and has for value + 0.81. The model does not confirm the existence a free rider / substitution / spillover effect but rather reveals significant expenditure competition effects. Each municipality apparently wants to provide a range of public local goods at least as wide as the neighbouring ones. Nevertheless the model is worth developing and some suggestions on how to do it are brought up in the final part.
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Volume (Year): 49 (2006)
Issue (Month): 2 ()
Pages: 97-120
| Handle: | RePEc:bxr:bxrceb:y:2006:v:49:i:2:p:97-119 |
| Contact details of provider: | Web page: http://difusion.ulb.ac.be More information through EDIRC
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References listed on IDEAS
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- James C. Murdoch & Morteza Rahmatian & Mark A. Thayer, 1993. "A Spatially Autoregressive Median Voter Model of Recreation Expenditures," Public Finance Review, , vol. 21(3), pages 334-350, July.
- CATTOIR, Philippe & VERDONCK, Magali, "undated". "La péréquation financière. Analyse de quatre pays," CORE Discussion Papers RP 1415, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Tulkens, Henry, 1978. "Dynamic processes for public goods : An institution-oriented survey," Journal of Public Economics, Elsevier, vol. 9(2), pages 163-201, April.
- Johan Lundberg, 2006. "Spatial interaction model of spillovers from locally provided public services," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 631-644.
- Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185.
- Wallace E. Oates, 1991. "Studies In Fiscal Federalism," Books, Edward Elgar Publishing, number 342.
- Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-598, September.
- Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, vol. 59(2), pages 479-487, May.
- Niklas Hanes, 2002. "Spatial Spillover Effects in the Swedish Local Rescue Services," Regional Studies, Taylor & Francis Journals, vol. 36(5), pages 531-539.
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