Spatial Spillover Effects of Public Services on Factor Income--Based onChanges in Variable Costs

In this paper, from the perspective of spatial economics, we studied the spatial spillover of public services and their effect on factor income. We establish a Nonlinear General Equilibrium Model, which contains "two regions, two sectors and two elements". For the determination of the spill-over effect, using Matlab mathematical software to draw a furger, through the mathematical method of derivative, we discuss the impact of public service on the factors' such as flow and spatial distribution. The study found that public services can increase the rate of factor income and facili- tate the flow of factors of production. With the accelerated process of economic globalization, inter-regional linkages have become ever more closely, ex- changes become more frequent, spillover effects of public services are increasing day by day. The local public service overflow, especially the accurate public service overflow, makes the income boundaries become blurred. With the in- creasing public goods, the cost of living and manufacture is reduced, the private sector reaps more revenue, and agglomer- ating and radiating effects are promoted. From the perspective of spatial economy, this paper studied the effect of spatial spillover effects on factor income of the public service (1, 2).