Albert Solé-Ollé () (IEB, Universitat de Barcelona.) Miriam Hortas-Rico () (IEB, Universitat de Barcelona.)
Abstract
This paper examines the impact of urban sprawl, a phenomenon of particular interest in Spain, which is currently experiencing this process of rapid, low-density urban expansion. Many adverse consequences are attributed to urban sprawl (e.g., traffic congestion, air pollution and social segregation), though here we are concerned primarily with the rising costs of providing local public services. Our initial aim is to develop an accurate measure of urban sprawl so that we might empirically test its impact on municipal budgets. Then, we undertake an empirical analysis using a cross-sectional data set of 2,500 Spanish municipalities for the year 2003 and a piecewise linear function to account for the potentially nonlinear relationship between sprawl and local costs. The estimations derived from the expenditure equations for both aggregate and six disaggregated spending categories indicate that low-density development patterns lead to greater provision costs of local public services.
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Paper provided by Xarxa de Referència en Economia Aplicada (XREAP) in its series Working Papers with number
XREAP2008-10.
Length: 41 pages Date of creation: Nov 2008 Date of revision:
Nov 2008 Handle: RePEc:xrp:wpaper:xreap2008-10
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Find related papers by JEL classification: H1 - Public Economics - - Structure and Scope of Government H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures R51 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
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[Downloadable!] (restricted)