In this paper, we test the hypotheses that recreational and cultural services provided at the local level of government are associated with bene…t spillovers between Swedish municipalities. We also test the hypothesis that municipalities with similar expenditure levels are more clustered than would be expected from merely a coincidence. A representative voter model is derived and the demand for recreational and cultural services is estimated using spatial SUR techniques. The results suggest that these expenditures are associated with bene…t spillovers and that municipalities with similar expenditure levels are clustered to a greater extent than would be expected from just a coincidence.
Med stöd från Svenska komunförbundet. Published in Regional studies(ISSN 0034-3404)Vol 40 No 6 pp 631-644. Taylor & Francis. DOI:10.1080/00343400600868788 Changes may have been made to this work since it was submitted for publication.