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Overlapping Jurisdictions: Substitutes or Complements?

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  • Turnbull, Geoffrey K
  • Djoundourian, Salpie S

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

Suggested Citation

  • Turnbull, Geoffrey K & Djoundourian, Salpie S, 1993. "Overlapping Jurisdictions: Substitutes or Complements?," Public Choice, Springer, vol. 75(3), pages 231-245, March.
    • Handle: RePEc:kap:pubcho:v:75:y:1993:i:3:p:231-45
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Christopher B. Goodman, 2015. "Local Government Fragmentation and the Local Public Sector," Public Finance Review, , vol. 43(1), pages 82-107, January.
    5. Quentin Frère & Matthieu Leprince & Sonia Paty, 2014. "The Impact of Intermunicipal Cooperation on Local Public Spending," Urban Studies, Urban Studies Journal Limited, vol. 51(8), pages 1741-1760, June.
    6. Florence Lachet-Touya, 2009. "Tax Interactions with Asymmetric Information and Nonlinear Instruments," Working papers of CATT hal-03551027, HAL.
    7. Rajeev K. Goel, 2021. "Masquerading the Government: Drivers of Government Impersonation Fraud," Public Finance Review, , vol. 49(4), pages 548-572, July.
    8. Guy Gilbert & Alain Guengant, 2004. "Évaluation de la performance péréquatrice des concours financiers de l'État aux communes," Économie et Statistique, Programme National Persée, vol. 373(1), pages 81-108.
    9. Geoffrey K. Turnbull & Michael T. Tasto, 2008. "Independent Cities and Counties in Virginia: Substitute Jurisdictions?," Urban Studies, Urban Studies Journal Limited, vol. 45(1), pages 53-66, January.
    10. Kevin Willardsen, 2021. "Measuring fiscal interactions in local federalism: Evidence from Florida," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 891-923, August.
    11. 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.
    12. 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.
    13. Ali, Amin Masud & Savoia, Antonio, 2023. "Decentralisation or patronage: What determines government's allocation of development spending in a unitary country? Evidence from Bangladesh," European Journal of Political Economy, Elsevier, vol. 78(C).
    14. Keith Dowding & Peter John & Stephen Biggs, 1994. "Tiebout : A Survey of the Empirical Literature," Urban Studies, Urban Studies Journal Limited, vol. 31(4-5), pages 767-797, May.
    15. Robert A. Greer, 2015. "Overlapping Local Government Debt and the Fiscal Common," Public Finance Review, , vol. 43(6), pages 762-785, November.
    16. Florence Lachet-Touya, 2009. "Tax Interactions with Asymmetric Information and Nonlinear Instruments," Working Papers hal-03551027, HAL.
    17. Matthieu Leprince & Alain Guengant, 2006. "Évaluation des effets des régimes de coopération intercommunale sur les dépenses publiques locales," Économie et Prévision, Programme National Persée, vol. 175(4), pages 79-99.
    18. Jaaidane, Touria & Larribeau, Sophie, 2023. "The effects of inter-municipal cooperation and central grant allocation on the size of the French local public sector," European Journal of Political Economy, Elsevier, vol. 76(C).
    19. 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.
    20. Rajeev K. Goel & Michael A. Nelson, 2021. "Drivers of COVID-19 vaccinations: vaccine delivery and delivery efficiency in the United States," Netnomics, Springer, vol. 22(1), pages 53-69, June.
    21. Guy Gilbert, 1996. "Le fédéralisme financier, perspectives de microéconomie spatiale," Revue Économique, Programme National Persée, vol. 47(2), pages 311-363.
    22. Spencer T. Brien & Wenli Yan, 2020. "Are Overlapping Local Governments Competing With Each Other When Issuing Debt?," Public Budgeting & Finance, Wiley Blackwell, vol. 40(2), pages 75-92, June.
    23. Goel, Rajeev K. & Nelson, Michael A. & Goel, Viraat Y., 2021. "COVID-19 vaccine rollout—scale and speed carry different implications for corruption," Journal of Policy Modeling, Elsevier, vol. 43(3), pages 503-520.
    24. Robert F. Salvino & Gregory M. Randolph & Geoffrey K. Turnbull & Michael T. Tasto, 2019. "The effects of decentralization on special interest groups," Public Choice, Springer, vol. 181(3), pages 191-213, December.
    25. Touria Jaaidane & Sophie Larribeau, 2021. "When Cooperation tames the Leviathan and Partisan-distorted Grant Allocation feeds it: Evidence from French Municipalities," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2021-04, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

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