Optimal and Equilibrium Membership in Clubs in the Presence of Spillovers

Conley, John P.; Dix, Manfred

doi:10.1006/juec.1998.2119

Cited by 23 publications

(17 citation statements)

References 13 publications

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“…Therefore, following on from Conley and Dix [16] we shall differentiate between two types of expenditure spillovers: (i) "benefit spillovers," arising from the provision of local public goods, and (ii) "crowding spillovers," arising from the crowding of facilities by residents in neighboring jurisdictions. The introduction of crowding spillovers in the model has implications for the specification of the expenditure reaction function, since the neighbor's covariates (e.g., population, cost drivers) should now also be included in the equation.…”

Section: Introductionmentioning

confidence: 99%

Expenditure spillovers and fiscal interactions: Empirical evidence from local governments in Spain

Solé‐Ollé¹

2006

Journal of Urban Economics

125

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The paper presents a framework for measuring spillovers resulting from local expenditure policies. We identify and test for two different types of expenditure spillovers: (i) "benefit spillovers", arising from the provision of local public goods, and (ii) "crowding spillovers", arising from the crowding of facilities by residents in neighboring jurisdictions. Benefit spillovers are accounted for by assuming that the representative resident enjoys the consumption of a local public good in both his own community and in those surrounding it. Crowding spillovers are included by considering that a locality's consumption level is influenced by the population living in the surrounding localities. We estimate a reaction function, with interactions between local governments occurring not only between expenditure levels, but also between neighbors' populations and expenditures. The equation is estimated using data on more than 2,500 Spanish local governments for the year 1999. The results show that both types of spillovers are relevant.

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Section: Introductionmentioning

confidence: 99%

Expenditure spillovers and fiscal interactions: Empirical evidence from local governments in Spain

Solé‐Ollé¹

2006

Journal of Urban Economics

125

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“…Second, the size of support is likely to vary with characteristics of each group member (citizen income levels or firm size). Third, the size of political support is predicted to vary with each group's organizational capacity [12,33]. Differences in organizational capacity determine a group's ability to mobilize its members, thus deterring free riding.…”

Section: Hypotheses About Chosen Levels Of Regulatory Effortmentioning

confidence: 99%

“…11 Alternative theories of regulatory policymaking focus on the median voter or legislative controls or bureaucratic culture. 12 The literature identifies a wide range of determinants that may drive jurisdictional succession and fragmentation, including differences in their size [7,15], racial composition [3,6,18,28] and income [8]. In addition, economic theory predicts that economies of scale and differences in the preferred level of the public good will drive these decisions [29,39,40].…”

Section: Formulating Hypotheses About City Authority Seekingmentioning

confidence: 99%

The environmental consequences of decentralizing the decision to decentralize

Cutter

DeShazo

2007

Journal of Environmental Economics and Management

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“…The application of spatial correlation to the distribution of public services, and particularly the phenomenon of spatial spillover, has become a hotspot of research in analyses of public service efficiency (Feidler and Staal 2012). Correlational studies have revealed that interactions between public service expenditures by local governments can be driven by various effects, including 1) financial competition between regions (Besley and Coate 2003;Wilson and Wildasin 2004;Sheng and Fu 2006), 2) mimicking that is driven by yardstick competition (Thenbürger 2002;Frederico 2003;Gebremeskel 2012;Caldeira 2012), and 3) positive or negative spillovers (Dalhby 1994;Conley and Dix 1999;Sato 2000;Boadway 2001;Brueckner 2003). Both theory and causal observations suggest that expenditure spillovers are a widespread feature of many services provided by local governments (Ermini and Santolini 2010;Sole-Olle 2006).…”

Section: Introductionmentioning

confidence: 99%

Spatial spillover and the factors influencing public service supply in Sichuan province, China

2014

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This article examines the spatial characteristics of public service supply and the factors influencing such supply in cities of Sichuan Province, China using spatial-autocorrelation and spatial econometric models with statistical data in 2012. The results demonstrate that expenditures on different types of public services present different spatial autocorrelation patterns. Although the spatial differences in basic public service expenditures are relatively small, a clear fan-shaped spillover to the east can be seen in Chengdu City. Chengdu also shows high clustering of advanced public service expenditures, being a typical core-periphery pattern. Post-earthquake reconstruction expenditures are clustered in the "5.12 Wenchuan earthquake" region and spill over toward cities to the east. The efficiency of public services in the mountainous areas in western Sichuan is low and exhibits a pattern of low-low spatial autocorrelation. The efficiency of public service supply is affected by economic, social, political and geographical factors. Based on the results of this analysis, we recommend a supply strategy that incorporates different types of public services and a specialized public service supply strategy for mountainous areas. Overall public service efficiency should be enhanced by focusing on narrowing the gap in farmers' income among regions and accelerating urbanization. Decision-makers should consider more supportive policies with regard to providing basic public services in mountainous areas to ensure an equalized supply of basic public services. To enhance the efficiency of advanced public service supply, additional growth pole should be encouraged and incentivized; however, investments are required to drive the development of the peripheral regions through regional economic integration. Both software and hardware types of infrastructure are required to supply services efficiently during post-disaster reconstruction.Citation: Song XQ, Deng W, Liu Y (2014) Spatial spillover and the factors influencing public service supply in Sichuan

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Optimal and Equilibrium Membership in Clubs in the Presence of Spillovers

Cited by 23 publications

References 13 publications

Expenditure spillovers and fiscal interactions: Empirical evidence from local governments in Spain

Expenditure spillovers and fiscal interactions: Empirical evidence from local governments in Spain

The environmental consequences of decentralizing the decision to decentralize

Spatial spillover and the factors influencing public service supply in Sichuan province, China

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