Modeling positive inter-jurisdictional public spending spillovers

Martin Gregor ()

No 5193, EcoMod2013 from EcoMod

Abstract: This paper builds spatial microfoundations for the functional forms used in the analysis of inter-jurisdictional public spending spillovers. The paper introduces a symmetric bilateral model that distinguishes between three stages: production of multiple public inputs (intermediary goods), production of multiple public outputs (final goods) including asymmetries and non-additive aggregations, and consumption of the public outputs with asymmetries and preferences for variety. The paper identifies sufficient conditions for the different combinations of the features to be isomorphic. Additionally, it analyzes which microfoundations for the inter-jurisdictional spillovers lead to asymmetrically structured demands for public spending.

Keywords: Any decentralized country; Public finance and tax issues; Regional modeling (search for similar items in EconPapers)
Date: 2013-06-21
New Economics Papers: this item is included in nep-pbe and nep-ure
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Related works:
Working Paper: Modeling positive inter-jurisdictional public spending spillovers (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ekd:004912:5193

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