This study examines the interdependence among municipalities in the discrete decision to adopt internet technology. Results from probit specifications with interaction effects suggest that cities are influenced by nearby neighbours with similar population size in developing a website. Evidence...

It is well known that most of the standard specification tests are not robust when the alternative is misspecified. Using the asymptotic distributions of standard Lagrange multiplier (LM) test under local misspecification, we suggest a robust specification test. This test essentially adjusts the...

This study tests for fiscal interdependence in the provision of a local public good—libraries in Los Angeles County. The authors present evidence that the reaction of libraries to fiscal externalities is dependent on the level of government producing the good. The authors find that the...

People sort over space due to (among other factors) the demand for amenities. This demand is partially determined by income. Using data from southern California, we investigate how variation in air quality affects residential sorting by income. We find that sorting caused by air quality...