01301pab a2200181 454500 180718b2003 xxu||||| |||| 00| 0 eng d Revelli, Federico Reaction or interaction? Spatial process identification in multi-tiered government structures 2003 p.29-53. Jan This paper models horizontal and vertical fiscal externalities in a multi-tiered structure of government, and implements maximum likelihood and instrumental variables estimation techniques to identify the source of spatial dependence in English local government expenditures. The results shows that when vertical fiscal externalities among upper-tier (County) authority and lower-tier (District) authority expenditures are explicitly taken into account, the estimated magnitude of inter-district fiscal interactions is substantially reduced. The observed positive spatial autocorrelation among District expenditures can consequently be attributed to a large extent to common reaction to County fiscal policies, rather than to actual strategic interaction. - Reproduced. Public expenditure - Great Britain Local government - Great Britain Local government Journal of Urban Economics 56006 56006 56006 0 0 0 0 IIPA IIPA 2018-07-19 Volume no: 53, Issue no: 1 AR56451 2018-07-19 2018-07-19 AR