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Quantifying the cost of foregone public goods spillovers on an island

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  • Adam Cox
  • Alan Leonard
  • Ansgar Wohlschlegel

Abstract

This paper develops a framework for quantifying the cost of the lack of public goods spillovers from neighbouring municipalities for a geographically separated municipality. Parameter estimates from a spatial panel regression of local public expenditure in 205 municipalities in England, Scotland and Wales are used to identify the extra budget that a remote municipality would require in order to provide the same level of public goods as without separation. The approach is illustrated by applying it to the case of the Isle of Wight (UK) and to estimate its annual cost of foregone public goods spillover to be about one-quarter of the island’s actual annual local public spending.

Suggested Citation

  • Adam Cox & Alan Leonard & Ansgar Wohlschlegel, 2019. "Quantifying the cost of foregone public goods spillovers on an island," Regional Studies, Taylor & Francis Journals, vol. 53(8), pages 1170-1182, August.
    • Handle: RePEc:taf:regstd:v:53:y:2019:i:8:p:1170-1182
    DOI: 10.1080/00343404.2018.1548762
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