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Overcoming City Limits: Vertical and Horizontal Models of Local Redistributive Policy Making

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  • Michael Craw

Abstract

Objectives. Contrary to conventional wisdom, Census data show a substantial local role in providing health, housing, and public welfare services. I evaluate two models to explain local social welfare: an intergovernmental model, based on federal and state funds, and an interjurisdictional model, based on measures of local monopoly power. Methods. I estimate a panel data model of local redistributive expenditures from 1992–2002 to test between these alternative explanations for local redistribution. Results. I find that vertical arrangements tend to drive local redistributive spending. Conclusions. Intergovernmental factors drive local social welfare policy and suppress the local welfare race to the bottom.

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  • Michael Craw, 2006. "Overcoming City Limits: Vertical and Horizontal Models of Local Redistributive Policy Making," Social Science Quarterly, Southwestern Social Science Association, vol. 87(2), pages 361-379, June.
    • Handle: RePEc:bla:socsci:v:87:y:2006:i:2:p:361-379
    DOI: 10.1111/j.1540-6237.2006.00385.x
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    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
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    Cited by:

    1. Shanthi Karuppusamy & Jered B. Carr, 2012. "Interjurisdictional Competition and Local Public Finance: Assessing the Modifying Effects of Institutional Incentives and Fiscal Constraints," Urban Studies, Urban Studies Journal Limited, vol. 49(7), pages 1549-1569, May.
    2. Meeyoung Lamothe & Scott Lamothe, 2015. "Exploring the Determinants of Local Service Termination," Social Science Quarterly, Southwestern Social Science Association, vol. 96(5), pages 1453-1474, November.
    3. Stephan J Goetz & Mark D Partridge & Dan S Rickman & Shibalee Majumdar, 2011. "Sharing the Gains of Local Economic Growth: Race-to-the-Top versus Race-to-the-Bottom Economic Development," Environment and Planning C, , vol. 29(3), pages 428-456, June.
    4. Linda Lobao & P. Wilner Jeanty & Mark Partridge & David Kraybill, 2012. "Poverty and Place across the United States," International Regional Science Review, , vol. 35(2), pages 158-187, April.

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