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On Spatial Public Finance Empirics

Federico Revelli ()

International Tax and Public Finance, 2005, vol. 12, issue 4, 475-492

Abstract: This paper focuses on the empirical specification of theoretical models of strategic interaction that give rise to a spatial pattern in local government expenditures and revenues. It shows that estimation of a reduced form inter-jurisdictional reaction function might not by itself allow to discriminate among competing strategic interaction theories. A review of the recent empirical literature suggests that exploring in more depth the specific empirical implications of alternative theoretical models, as well as fully exploiting the institutional features of multi-tiered government structures and local electoral systems, can help identify the structural model generating the observed spatial auto-correlation in policy variables. Copyright Springer Science + Business Media, Inc. 2005

Keywords: fiscal externalities; expenditure spill-over; tax competition; yardstick competition (search for similar items in EconPapers)
Date: 2005
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