WHO CONTRIBUTES TO PUBLIC-GOODS - WITH AN APPLICATION TO LOCAL ECONOMIC-POLICIES IN THE NETHERLANDS

We present three models for the extent to which actors reduce their co ntributions to the production of a public good because of expected con tributions by other actors. The first model is a simple game theoretic model, the second a spatial autocorrelation model, and the third is a hybrid of the first two models. Estimation of the three models from i ncomplete data is discussed. The three models are applied to data on e conomic policies of municipalities in the Netherlands. In particular, it is probed whether municipalities take a free ride on the measures o f their neighbors.