Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/214434 
Year of Publication: 
2009
Series/Report no.: 
CREMA Working Paper No. 2009-07
Publisher: 
Center for Research in Economics, Management and the Arts (CREMA), Basel
Abstract: 
This paper investigates spatial spillovers in local spending decisions between the center and the surrounding local communities by using panel data of the canton of Lucerne during the 1990s. Due to the geographical fragmentation with a major central city and some 100 small suburban local communities within a distance from 4 to 55 kilometers to the center this area represents a particularly useful database in order to test the relevance of spatial interactions in a small metropolitan area. The empirical evidence confirms strategic interactions among suburban governments and the central city only for public education, health and environmental spending. There are no spatial interactions with the central city for overall government spending.
Subjects: 
spatial spillovers
strategic interaction
central city exploitation
JEL: 
D72
H72
Document Type: 
Working Paper

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