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Spatial Spillovers in Metropolitan Areas: Evidence from Swiss Communes

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  • Christoph A. Schaltegger
  • Simon Zemp

Abstract

This paper investigates spatial spillovers in local spending decisions by using panel data of the Swiss communes in the canton of Lucerne during the 1990s. Due to the geographical fragmentation with a major central city and some 100 suburban communes within a distance from 4 to 55 kilometers to the center this area represents a particularly useful data base in order to test the relevance of spatial interactions in metropolitan areas. The empirical evidence confirms strategic interactions among suburban governments and the central city for public security spending. A 10% increase of the city?s security spending leads to a 3% decrease in security spending of the suburban communes in the Lucerne area. For all other spending items, the empirical evidence suggests no quantitative and significant spatial spillover effects. The same applies for spatial spillovers in overall local spending between the Lucerne communes and the Lucerne central city.

Suggested Citation

  • Christoph A. Schaltegger & Simon Zemp, 2003. "Spatial Spillovers in Metropolitan Areas: Evidence from Swiss Communes," CREMA Working Paper Series 2003-06, Center for Research in Economics, Management and the Arts (CREMA).
    • Handle: RePEc:cra:wpaper:2003-06
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    Cited by:

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    2. Marc Brunetto & Nadine Levratto, 2017. "Analysis of the job creation process in metropolitan areas: A spatial perspective," EconomiX Working Papers 2017-36, University of Paris Nanterre, EconomiX.
    3. Fernando A. López & Pedro J. Martínez-Ortiz & Juan-Gabriel Cegarra-Navarro, 2017. "Spatial spillovers in public expenditure on a municipal level in Spain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(1), pages 39-65, January.
    4. Edmark, Karin, 2007. "Strategic competition in Swedish local spending on childcare, schooling and care for the elderly," Working Paper Series 2007:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Hyunjung Ji & Mark Patrick Tate, 2021. "Spillover effects of central cities on sustainability efforts in a metropolitan area," Policy Sciences, Springer;Society of Policy Sciences, vol. 54(1), pages 95-121, March.
    6. Katarzyna Kopczewska, 2013. "Roads as Channels of Centrifugal Policy Transfer: A Spatial Interaction Model Revised," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(3), September.
    7. López Hernández, Fernando A. & Martínez Ortiz, Pedro José & Cegarra Navarro, Juan Gabriel, 2015. "Interacción espacial en el gasto en servicios públicos de las entidades locales. Un enfoque panel mediante modelos SUR /Spatial Interaction in Spending on Public Services by Local Governments. A Panel," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 33, pages 81-100, Enero.
    8. Barbara ERMINI & Raffaella SANTOLINI, 2007. "Horizontal Interaction on Local Councils' Expenditures. Evidence from Italy," Working Papers 278, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    9. Hans Pitlik & Klaus Wirth & Barbara Lehner, 2010. "Gemeindestruktur und Gemeindekooperation," WIFO Studies, WIFO, number 41359.
    10. Soyoung Park & Sungchan Kim, 2023. "Does fiscal decentralization affect local governments' strategic behaviours? Evidence from South Korea," Pacific Economic Review, Wiley Blackwell, vol. 28(1), pages 124-141, February.

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    More about this item

    Keywords

    spatial spillovers; strategic interaction; central city exploitation;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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