IDEAS home Printed from https://ideas.repec.org/a/bla/jregsc/v62y2022i1p81-95.html
   My bibliography  Save this article

Local economic growth and local government investment in parks and recreation, or five cheese pizzas for $2.6 million

Author

Listed:
  • David M. Brasington

Abstract

Amenities have been linked to economic growth, which has been studied at the level of nations, regions, and urban areas. We look instead at economic development at the highly localized level of cities, villages, and townships. We use regression discontinuity to estimate the effect of renewing and cutting parks and recreation spending. We find an initial effect of $2.6 million in additional residential construction 1 year after voting to renew tax funding, with diminishing effects in subsequent years. We use votes to renew tax levies, arguing that the timing of tax proposals for new funding has endogenously chosen timing.

Suggested Citation

  • David M. Brasington, 2022. "Local economic growth and local government investment in parks and recreation, or five cheese pizzas for $2.6 million," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 81-95, January.
    • Handle: RePEc:bla:jregsc:v:62:y:2022:i:1:p:81-95
    DOI: 10.1111/jors.12554
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jors.12554
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jors.12554?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    2. Harry Garretsen & Gerard Marlet, 2017. "Amenities and the attraction of Dutch cities," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 724-736, May.
    3. Steven D. Levitt, 2002. "Using Electoral Cycles in Police Hiring to Estimate the Effects of Police on Crime: Reply," American Economic Review, American Economic Association, vol. 92(4), pages 1244-1250, September.
    4. Alexander W. Marré & Anil Rupasingha, 2020. "School quality and rural in‐migration: Can better rural schools attract new residents?," Journal of Regional Science, Wiley Blackwell, vol. 60(1), pages 156-173, January.
    5. Sebastian Calonico & Matias D. Cattaneo & Max H. Farrell & Rocío Titiunik, 2019. "Regression Discontinuity Designs Using Covariates," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 442-451, July.
    6. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    7. Riccardo Borgoni & Alessandra Michelangeli & Nicola Pontarollo, 2018. "The value of culture to urban housing markets," Regional Studies, Taylor & Francis Journals, vol. 52(12), pages 1672-1683, December.
    8. Matias D. Cattaneo & Michael Jansson & Xinwei Ma, 2020. "Simple Local Polynomial Density Estimators," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 115(531), pages 1449-1455, July.
    9. Margot Lutzenhiser & Noelwah R. Netusil, 2001. "The Effect Of Open Spaces On A Home'S Sale Price," Contemporary Economic Policy, Western Economic Association International, vol. 19(3), pages 291-298, July.
    10. John C. Bergstrom & H. Ken Cordell & Gregory A. Ashley & Alan E. Watson, 1990. "Economic Impacts of Recreational Spending on Rural Areas: A Case Study," Economic Development Quarterly, , vol. 4(1), pages 29-39, February.
    11. Sebastian Calonico & Matias D. Cattaneo & Rocio Titiunik, 2014. "Robust Nonparametric Confidence Intervals for Regression‐Discontinuity Designs," Econometrica, Econometric Society, vol. 82, pages 2295-2326, November.
    12. Mark D. Partridge, 2010. "The duelling models: NEG vs amenity migration in explaining US engines of growth," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 513-536, August.
    13. Brueckner, Jan K., 1979. "Property values, local public expenditure and economic efficiency," Journal of Public Economics, Elsevier, vol. 11(2), pages 223-245, March.
    14. Marcouiller, David W. & Prey, Jeff, 2005. "The Tourism Supply Linkage: Recreational Sites and their Related Natural Amenities," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 35(1), pages 1-10.
    15. Sebastian Calonico & Matias D. Cattaneo & Max H. Farrell & Roc ́ıo Titiunik, 2017. "rdrobust: Software for regression-discontinuity designs," Stata Journal, StataCorp LP, vol. 17(2), pages 372-404, June.
    16. Dan S. Rickman & Hongbo Wang, 2017. "US regional population growth 2000–2010: Natural amenities or urban agglomeration?," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 69-90, March.
    17. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    18. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    19. Stephanie Riegg Cellini & Fernando Ferreira & Jesse Rothstein, 2010. "The Value of School Facility Investments: Evidence from a Dynamic Regression Discontinuity Design," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 215-261.
    20. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    21. Gerald A. Carlino & Albert Saiz, 2019. "Beautiful city: Leisure amenities and urban growth," Journal of Regional Science, Wiley Blackwell, vol. 59(3), pages 369-408, June.
    22. Ranis, Gustav & Stewart, Frances & Ramirez, Alejandro, 2000. "Economic Growth and Human Development," World Development, Elsevier, vol. 28(2), pages 197-219, February.
    23. Donald B. K. English, 2000. "Calculating Confidence Intervals for Regional Economic Impacts of Recreation by Bootstrapping Visitor Expenditures," Journal of Regional Science, Wiley Blackwell, vol. 40(3), pages 523-539, August.
    24. Buddelmeyer, Hielke & Skoufias, Emmanuel, 2003. "An Evaluation of the Performance of Regression Discontinuity Design on PROGRESA," IZA Discussion Papers 827, Institute of Labor Economics (IZA).
    25. Brasington, David M., 2017. "School spending and new construction," Regional Science and Urban Economics, Elsevier, vol. 63(C), pages 76-84.
    26. David Albouy & Heepyung Cho & Mariya Shappo, 2021. "Immigration and the pursuit of amenities," Journal of Regional Science, Wiley Blackwell, vol. 61(1), pages 5-29, January.
    27. Brad R. Humphreys & Jane E. Ruseski, 2007. "Participation In Physical Activity And Government Spending On Parks And Recreation," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 538-552, October.
    28. David M. Brasington, 2017. "What types of people sort to which public services?," Papers in Regional Science, Wiley Blackwell, vol. 96(3), pages 537-553, August.
    29. Gihoon Hong, 2016. "Examining the role of amenities in migration decisions: A structural estimation approach," Papers in Regional Science, Wiley Blackwell, vol. 95(4), pages 733-754, November.
    30. John Keith & Christopher Fawson, 1995. "Economic development in rural Utah: is wilderness recreation the answer?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 29(3), pages 303-313.
    31. Erik Meyersson, 2014. "Islamic Rule and the Empowerment of the Poor and Pious," Econometrica, Econometric Society, vol. 82(1), pages 229-269, January.
    32. Alessandra Faggian & Philip McCann, 2009. "Human capital, graduate migration and innovation in British regions," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(2), pages 317-333, March.
    33. Jan Melichar & Pavel Rieger & Ondřej Vojáček & Karel Jedlička, 2009. "Measuring the Value of Urban Forest using," Regionální studia, Prague University of Economics and Business, vol. 2009(2), pages 13-20.
    34. Acemoglu, Daron, 2012. "Introduction to economic growth," Journal of Economic Theory, Elsevier, vol. 147(2), pages 545-550.
    35. Matias D. Cattaneo & Michael Jansson & Xinwei Ma, 2018. "Manipulation testing based on density discontinuity," Stata Journal, StataCorp LP, vol. 18(1), pages 234-261, March.
    36. Li Gao & Abdoul G. Sam, 2019. "Does climate matter? An empirical study of interregional migration in China," Papers in Regional Science, Wiley Blackwell, vol. 98(1), pages 477-496, February.
    37. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
    38. Knapp, Thomas A. & Graves, Philip E., 1989. "On the role of amenities in models of migration and regional development," MPRA Paper 19914, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David M. Brasington, 2022. "Cutting Funding for Police Protection: The Consequences for the Size of Newly-Constructed Housing," The Journal of Real Estate Finance and Economics, Springer, vol. 65(4), pages 549-571, November.
    2. Mauricio Villamizar‐Villegas & Freddy A. Pinzon‐Puerto & Maria Alejandra Ruiz‐Sanchez, 2022. "A comprehensive history of regression discontinuity designs: An empirical survey of the last 60 years," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1130-1178, September.
    3. Blaise Melly & Rafael Lalive, 2020. "Estimation, Inference, and Interpretation in the Regression Discontinuity Design," Diskussionsschriften dp2016, Universitaet Bern, Departement Volkswirtschaft.
    4. David M. Brasington & Marios Zachariadis, 2022. "Fiscal policy and economic activity: New Causal Evidence," University of Cyprus Working Papers in Economics 09-2022, University of Cyprus Department of Economics.
    5. Burgherr, David, 2022. "Behavioral Responses to a Pension Savings Mandate : Quasi-experimental Evidence from Swiss Tax Data," CAGE Online Working Paper Series 645, Competitive Advantage in the Global Economy (CAGE).
    6. Mohamed Abouaziza, 2022. "Farmer constraints and relational contracts: evidence from agricultural value chains in East Africa," Economics PhD Theses 0122, Department of Economics, University of Sussex Business School.
    7. Mellace, Giovanni & Ventura, Marco, 2019. "Intended and unintended effects of public incentives for innovation. Quasi-experimental evidence from Italy," Discussion Papers on Economics 9/2019, University of Southern Denmark, Department of Economics.
    8. Crespo Cristian, 2020. "Beyond Manipulation: Administrative Sorting in Regression Discontinuity Designs," Journal of Causal Inference, De Gruyter, vol. 8(1), pages 164-181, January.
    9. Cuong Viet Nguyen & Finn Tarp, 2023. "Cash Transfers and Labor Supply: New Evidence on Impacts and Mechanisms," DERG working paper series 23-18, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    10. Bonilla, Sade, 2020. "The dropout effects of career pathways: Evidence from California," Economics of Education Review, Elsevier, vol. 75(C).
    11. Hérault, Nicolas & Vu, Ha & Wilkins, Roger, 2020. "The effect of job search requirements on welfare receipt," GLO Discussion Paper Series 646, Global Labor Organization (GLO).
    12. Schmutz, Benoît & Verdugo, Gregory, 2023. "Do elections affect immigration? Evidence from French municipalities," Journal of Public Economics, Elsevier, vol. 218(C).
    13. Crespo Cristian, 2020. "Beyond Manipulation: Administrative Sorting in Regression Discontinuity Designs," Journal of Causal Inference, De Gruyter, vol. 8(1), pages 164-181, January.
    14. Mellace, Giovanni & Ventura, Marco, 2023. "The short-run effects of public incentives for innovation in Italy," Economic Modelling, Elsevier, vol. 120(C).
    15. Zhuang Hao & Huihui Cheng & Till Bärnighausen & Simiao Chen, 2024. "The effects of parental retirement on adult children's health: Evidence from China," Health Economics, John Wiley & Sons, Ltd., vol. 33(1), pages 12-20, January.
    16. David M. Brasington & Marios Zachariadis, 2021. "Government spending and economic activity: Regression discontinuity evidence from voting on renewals of tax levies," University of Cyprus Working Papers in Economics 06-2021, University of Cyprus Department of Economics, revised 06 Dec 2020.
    17. de Gendre, Alexandra & Lynch, John & Meunier, Aurélie & Pilkington, Rhiannon & Schurer, Stefanie, 2021. "Child Health and Parental Responses to an Unconditional Cash Transfer at Birth," IZA Discussion Papers 14693, Institute of Labor Economics (IZA).
    18. D’Inverno, Giovanna & Smet, Mike & De Witte, Kristof, 2021. "Impact evaluation in a multi-input multi-output setting: Evidence on the effect of additional resources for schools," European Journal of Operational Research, Elsevier, vol. 290(3), pages 1111-1124.
    19. Augusto Cerqua & Guido Pellegrini, 2020. "Labor mobility effects of a firm-level shock," Working Papers 1/20, Sapienza University of Rome, DISS.
    20. Pastore, Chiara & Jones, Andrew M., 2023. "Human capital consequences of missing out on a grammar school education," Economic Modelling, Elsevier, vol. 126(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jregsc:v:62:y:2022:i:1:p:81-95. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.