Letters in Spatial and Resource Sciences

, Volume 9, Issue 2, pp 201–217

A three-stage model of inter-jurisdictional public spending spillovers

Original Paper


This paper argues that the modeling of positive inter-jurisdictional public spending spillovers may benefit from an analysis that involves three stages: the production of local public inputs, the production of local public outputs (accounting for input spillovers and non-additive aggregations), and the consumption of public outputs (accounting for output spillovers and preferences for variety). We map the existing literature onto this three-stage model and identify combinations of the features that generate strategically equivalent models of inter-jurisdictional public spending spillovers.


Spillovers Externalities Complementarity Local public goods 

JEL Classification

H4 H7 R5 

Copyright information

© Springer-Verlag Berlin Heidelberg 2015

Authors and Affiliations

  1. 1.Institute of Economic Studies, Faculty of Social SciencesCharles University in PraguePragueCzech Republic

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