Strategical interactions on municipal public safety spending with correlated private information

B-Tier
Journal: Regional Science and Urban Economics
Year: 2018
Volume: 72
Issue: C
Pages: 86-102

Authors (2)

Yang, Chao (not in RePEc) Lee, Lung-fei (Ohio State University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We investigate interactions of public safety spending among spatially related local jurisdictions in a framework of simultaneous move game both theoretically and empirically. Incorporating the mobility of residents and externality of public safety services, it is found that the public safety spending of a municipal government can be negatively related to those of its neighbors, which is empirically supported by a general interaction model with correlated private information using the data on municipalities in North Carolina. In this case, strategic interactions induce a reduction of municipal public safety spending by 7.2404% on average and a local government will reduce its own spending by 0.0927 million dollars when one of its neighbors is expected to increase public safety spending by 1 million dollars, showing strong “free-riding” effects.

Technical Details

RePEc Handle
repec:eee:regeco:v:72:y:2018:i:c:p:86-102
Journal Field
Urban
Author Count
2
Added to Database
2026-01-25