Interjurisdictional externalities are costs or benefits of local government goods and services to residents in other political jurisdictions.

Question

Quizplus · Accepted Answer

Interjurisdictional externalities refer to the impact of local government actions on individuals or communities outside of their jurisdiction. These externalities can arise from policies related to transportation, land use, or environmental regulations, among others. Examples of such externalities include traffic congestion in one municipality affecting air quality in neighboring communities, or the construction of a new housing development in one jurisdiction affecting property values and tax revenues in nearby areas.

Interjurisdictional Externalities Are Costs or Benefits of Local Government Goods