This paper implements a novel application of spatial econometrics to test the minority threat hypothesis by estimating the relationship and potential spillovers between race and police expenditures. This paper uses a strategic interaction framework to describe the mechanism that may drive expenditure spillovers as well as demographic spillovers. Estimating a Spatial Durbin Model (SDM), the findings of this study show counties with more residential segregation and are more conservative exhibit positive spillovers on neighboring county police expenditures. This paper makes a contribution by showing the effects of greater minority threat is not limited within geographic boundaries.
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