Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83322
Authors: 
Gregor, Martin
Year of Publication: 
2012
Series/Report no.: 
IES Working Paper 16/2012
Abstract: 
This paper builds spatial microfoundations for the functional forms used in the analysis of inter-jurisdictional public spending spillovers. It 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 model is characterized by seven modeling features, and the paper demonstrates how these features are combined in the relevant literature. 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.
Subjects: 
spillover
externality
complementarity
weak-link
local public goods
JEL: 
H4
H7
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size
347.34 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.