IDEAS home Printed from https://ideas.repec.org/p/cra/wpaper/2003-06.html
   My bibliography  Save this paper

Spatial Spillovers in Metropolitan Areas: Evidence from Swiss Communes

Author

Listed:
  • Christoph A. Schaltegger
  • Simon Zemp

Abstract

This paper investigates spatial spillovers in local spending decisions by using panel data of the Swiss communes in the canton of Lucerne during the 1990s. Due to the geographical fragmentation with a major central city and some 100 suburban communes within a distance from 4 to 55 kilometers to the center this area represents a particularly useful data base in order to test the relevance of spatial interactions in metropolitan areas. The empirical evidence confirms strategic interactions among suburban governments and the central city for public security spending. A 10% increase of the city?s security spending leads to a 3% decrease in security spending of the suburban communes in the Lucerne area. For all other spending items, the empirical evidence suggests no quantitative and significant spatial spillover effects. The same applies for spatial spillovers in overall local spending between the Lucerne communes and the Lucerne central city.

Suggested Citation

  • Christoph A. Schaltegger & Simon Zemp, 2003. "Spatial Spillovers in Metropolitan Areas: Evidence from Swiss Communes," CREMA Working Paper Series 2003-06, Center for Research in Economics, Management and the Arts (CREMA).
  • Handle: RePEc:cra:wpaper:2003-06
    as

    Download full text from publisher

    File URL: http://www.crema-research.ch/papers/2003-06.pdf
    File Function: Full Text
    Download Restriction: no

    File URL: http://www.crema-research.ch/abstracts/2003-06.htm
    File Function: Abstract
    Download Restriction: no

    References listed on IDEAS

    as
    1. Holtz-Eakin, Douglas, 1994. "Public-Sector Capital and the Productivity Puzzle," The Review of Economics and Statistics, MIT Press, pages 12-21.
    2. Deborah Roberts, 2000. "The Spatial Diffusion of Secondary Impacts: Rural-Urban Spillovers in Grampian, Scotland," Land Economics, University of Wisconsin Press, pages 395-412.
    3. Ladd, Helen F., 1994. "Fiscal impacts of local population growth: A conceptual and empirical analysis," Regional Science and Urban Economics, Elsevier, pages 661-686.
    4. Richard Voith, 1992. "City and suburban growth: substitutes or complements?," Business Review, Federal Reserve Bank of Philadelphia, issue Sep, pages 21-33.
    5. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, pages 409-429.
    6. Heyndels, Bruno & Vuchelen, Jef, 1998. "Tax Mimicking Among Belgian Municipalities," National Tax Journal, National Tax Association, vol. 51(n. 1), pages 89-101, March.
    7. Douglas Holtz-Eakin & Amy Schwartz, 1995. "Spatial productivity spillovers from public infrastructure: Evidence from state highways," International Tax and Public Finance, Springer;International Institute of Public Finance, pages 459-468.
    8. Werner W. Pommerehne & Susanne Krebs, 1991. "Fiscal Interactions of Central City and Suburbs: The Case of Zurich," Urban Studies, Urban Studies Journal Limited, pages 783-801.
    9. Douglas Holtz-Eakin & Amy Schwartz, 1995. "Spatial productivity spillovers from public infrastructure: Evidence from state highways," International Tax and Public Finance, Springer;International Institute of Public Finance, pages 459-468.
    10. Federico Revelli, 2001. "Spatial patterns in local taxation: tax mimicking or error mimicking?," Applied Economics, Taylor & Francis Journals, vol. 33(9), pages 1101-1107.
    11. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, pages 409-429.
    12. Kaldor, Nicholas, 1970. "The Case for Regional Policies," Scottish Journal of Political Economy, Scottish Economic Society, pages 337-348.
    13. 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, pages 285-307.
    14. Brueckner, Jan K., 1983. "Central-city income redistribution and the flight to the suburbs : A stylized model," Regional Science and Urban Economics, Elsevier, pages 177-193.
    15. Robert P. Inman & Daniel L. Rubinfeld, 1997. "Rethinking Federalism," Journal of Economic Perspectives, American Economic Association, pages 43-64.
    16. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-664, August.
    17. Heyndels, Bruno & Vuchelen, Jef, 1998. "Tax Mimicking Among Belgian Municipalities," National Tax Journal, National Tax Association, pages 89-101.
    18. Borck, Rainald & Owings, Stephanie, 2003. "The political economy of intergovernmental grants," Regional Science and Urban Economics, Elsevier, pages 139-156.
    19. Jan K. Brueckner, 2003. "Strategic Interaction Among Governments: An Overview of Empirical Studies," International Regional Science Review, , pages 175-188.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hans Pitlik & Klaus Wirth, 2012. "Municipal Structural Reform and Inter-municipal Cooperation," WIFO Monatsberichte (monthly reports), WIFO, pages 957-967.
    2. Fernando A. López & Pedro J. Martínez-Ortiz & Juan-Gabriel Cegarra-Navarro, 2017. "Spatial spillovers in public expenditure on a municipal level in Spain," The Annals of Regional Science, Springer;Western Regional Science Association, pages 39-65.
    3. Bengtsson, Niklas, 2010. "How responsive is body weight to transitory income changes? Evidence from rural Tanzania," Journal of Development Economics, Elsevier, pages 53-61.
    4. López Hernández, Fernando A. & Martínez Ortiz, Pedro José & Cegarra Navarro, Juan Gabriel, 2015. "Interacción espacial en el gasto en servicios públicos de las entidades locales. Un enfoque panel mediante modelos SUR /Spatial Interaction in Spending on Public Services by Local Governments. A Panel," Estudios de Economía Aplicada, Estudios de Economía Aplicada, pages 81-100.
    5. Edmark, Karin, 2007. "Strategic Competition in Swedish Local Spending on Childcare, Schooling and Care for the Elderly," Working Paper Series 2007:21, Uppsala University, Department of Economics.

    More about this item

    Keywords

    spatial spillovers; strategic interaction; central city exploitation;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cra:wpaper:2003-06. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna-Lea Werlen). General contact details of provider: http://edirc.repec.org/data/cremach.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.