If You Build It, Will They Come?: Fiscal Federalism, Local Provision of Public Tourist Amenities, and the Vision Iowa Fund
AbstractThe philosophy of fiscal federalism presumes that local communities will under- or over-provide public amenities in the presence of externalities.� We test this hypothesis using data from Vision Iowa, a state program which provided partial funding to communities to build tourist attractions.� We find a 1% increase in investment increased county taxable retail sales 0.9%.� The Stateâ€™s return, from program-induced sales tax revenue, averaged 9.2% annually.� Local communitiesâ€™ returns averaged 0.9% and we find a significant increase in surrounding areasâ€™ sales.� This suggests that without state subsidies, communities would undersupply public amenities aimed at attracting visitors.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 34375.
Date of creation: 08 Oct 2011
Date of revision:
Publication status: Forthcoming in Review of Regional Studies
Contact details of provider:
Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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fiscal federalism; local public goods; subsidy; externality; spillover; amenity; retail sales;
Other versions of this item:
- Deepak Premkumar & Austin Quackenbush & Georgeanne Artz & Peter Orazem, 2013. "If You Build it, Will They Come?: Fiscal Federalism, Local Provision of Public Tourist Amenities, and the Vision Iowa Fund," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 155-173, Winter.
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H4 - Public Economics - - Publicly Provided Goods
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-15 (All new papers)
- NEP-TUR-2011-10-15 (Tourism Economics)
- NEP-URE-2011-10-15 (Urban & Real Estate Economics)
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.:
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