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Modeling local growth control decisions in a multi-city case: Do spatial interactions and lobbying efforts matter?

Listed author(s):
  • Katharina Schone

    ()

  • Wilfried Koch
  • Catherine Baumont

Our article analyzes the determinants of local growth control decisions, which are modeled as the result of a political struggle between different groups of voters and organized lobbies. We show that under specific hypotheses, a higher homeownership rate can induce lower levels of controls. Considering residential choices as endogenous to growth control policies, the local decisions to control growth become strategically interdependent. Assuming imperfect mobility, we show that a spatial econometric specification can be directly derived from our theoretical model. Our empirical analysis concerning the determinants of the “taxe locale d’équipement”, a French local development tax, is thus naturally based on spatial econometrics. Its results confirm the major predictions of our model. Copyright Springer Science+Business Media, LLC 2013

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File URL: http://hdl.handle.net/10.1007/s11127-011-9811-1
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Article provided by Springer in its journal Public Choice.

Volume (Year): 154 (2013)
Issue (Month): 1 (January)
Pages: 95-117

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Handle: RePEc:kap:pubcho:v:154:y:2013:i:1:p:95-117
DOI: 10.1007/s11127-011-9811-1
Contact details of provider: Web page: http://www.springer.com

Order Information: Web: http://www.springer.com/economics/public+finance/journal/11127/PS2

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