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Fiscal Interactions of Central City and Suburbs: The Case of Zurich

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  • Werner W. Pommerehne

    (Department of Economics (FB2), Public Sector Economics, University of Saarland, D-6600 Saarbrucken, Germany, University of Zurich, CH8001 Zurich, Switzerland)

  • Susanne Krebs

    (University of Saarland)

Abstract

One possible explanation for the migration from the central city to fiscally independent suburbs is a lack of equivalence between taxation and perceived benefits from local public goods. Spill-outs to suburbs add to this process and may lead to fiscal erosion of the central city. Piecemeal evidence is presented that this problem applies to the city of Zurich. Various possible remedies are discussed, one of which has been applied in Zurich, though not successfully. It is shown theoretically and empirically why this failure occurred. Alternative countermeasures are suggested and an account of how Zurich government officials reacted is supplied.

Suggested Citation

  • Werner W. Pommerehne & Susanne Krebs, 1991. "Fiscal Interactions of Central City and Suburbs: The Case of Zurich," Urban Studies, Urban Studies Journal Limited, vol. 28(5), pages 783-801, October.
    • Handle: RePEc:sae:urbstu:v:28:y:1991:i:5:p:783-801
    DOI: 10.1080/00420989120080931
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    References listed on IDEAS

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    Cited by:

    1. Schaltegger Christoph A., 2003. "Zum Problem räumlicher Nutzen-Spillover zentralörtlicher Leistungen. Einige empirische Ergebnisse aus dem Schweizer Föderalismus / Inter-jurisdictional Spillover Effects from Central Public Infrastruc," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(2), pages 159-175, April.
    2. Christoph A. Schaltegger & Simon Zemp, 2003. "Spatial Spillovers in Metropolitan Areas: Evidence from Swiss Communes," CREMA Working Paper Series 2003-06, Center for Research in Economics, Management and the Arts (CREMA).
    3. Christoph A. Schaltegger & Benno Torgler & Simon Zemp, 2009. "Central City Exploitation by Urban Sprawl? Evidence from Swiss Local Communities," CREMA Working Paper Series 2009-07, Center for Research in Economics, Management and the Arts (CREMA).
    4. Lars Feld, 2005. "The European constitution project from the perspective of constitutional political economy," Public Choice, Springer, vol. 122(3), pages 417-448, March.

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