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Management Of Large City Regions: Designing Efficient Metropolitan Fiscal Policies

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  • Andrew F. Haughwout

Abstract

ABSTRACT Metropolitan areas (MSAs) are the location of the great majority of economic activity in the United States, and the largest produce a disproportionate share of output. It is thus critical for the economy's long‐term growth that large cities operate efficiently. In this paper, we briefly review the sources of productivity growth in cities. We then discuss the costs and benefits of political decentralization in large MSAs. After documenting the interdependence of the suburbs and central cities in large MSA, we develop a model that embodies many of the empirically verified aspects, including agglomeration economies and public goods. After calibrating the model to actual outcomes in a representative city, we simulate the effects of various kinds of fiscal redistributions. We conclude that, under the model, some kinds of fiscal redistributions can provide benefits in both cities and suburbs.

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  • Andrew F. Haughwout, 2010. "Management Of Large City Regions: Designing Efficient Metropolitan Fiscal Policies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 401-421, February.
    • Handle: RePEc:bla:jregsc:v:50:y:2010:i:1:p:401-421
    DOI: 10.1111/j.1467-9787.2009.00659.x
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    2. Howard Chernick & Santino Piazza, 2016. "Fiscal gaps in amalgamated metropolitan areas: The case of Turin and Genoa," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(1), pages 137-171.
    3. Shu‐Hen Chiang, 2012. "The Source of Metropolitan Growth: The Role of Commuting," Growth and Change, Wiley Blackwell, vol. 43(1), pages 143-166, March.
    4. Shu-hen Chiang, 2018. "Assessing the Merits of the Urban-Led Policy in China: Spread or Backwash Effect?," Sustainability, MDPI, vol. 10(2), pages 1-14, February.
    5. Shu-Hen Chiang, 2014. "The dilemma of "Twin Cities": is the suburban dependence hypothesis applicable?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 17(2), pages 149-163, June.
    6. Anping Chen & Marlon Boarnet & Mark Partridge & Gordon F. Mulligan, 2014. "Handbook of Regional Science (3 volumes) , edited by Manfred M. Fischer and Peter Nijkamp . Springer Reference Series. Heidelberg : Springer . 1732 + xxxvii. ISBN-978-3-642-23429-3; ISBN 978-3-642-23430-9 (eBook). Cloth, $949.00," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 711-716, September.

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