Because they supplement the municipal provision of local public goods, Business Improvement Districts (BIDs) provide an opportunity to examine the space, scope, and determinants of the provision of local public goods. A BID is formed when a group of merchants or commercial property owners in a neighborhood vote in favor of package of self-assessments and local public goods to be funded with those assessments. These districts solve a collective action problem in the provision of public goods because once a majority has voted in favor, participation is compulsory for all merchants or commercial property owners in the neighborhood. I use a unique dataset on adoption patterns of BIDs in California to test two main claims suggested by the theoretical literature: first, that businesses respond to individual heterogeneity that determines the quality of local public goods, and second, that the type of heterogeneity-overall or spatial-matters. In contrast to the literature on residents, this study finds at best a weak correlation between a city's adoption of a BID and heterogeneity. In addition, despite the theoretical preference for spatial over overall heterogeneity, BIDs are not more likely to be adopted by spatially heterogeneous cities. Copyright 2006 by The Policy Studies Organization.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 23 (2006) Issue (Month): 6 (November) Pages: 1219-1234 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)