This article presents a median voter model to explain the expenditures
on recreation by local governments. The authors show that when the be
nefits of a public good provided by one community can spill over to me
mbers of other communities the correct empirical specification is a sp
atially autoregressive econometric model. With respect to local recrea
tion, it was found that communities with relatively high incomes and a
ir pollution spend relatively less on provision.