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“Clean And Safe” For All? The Interaction Betweeen Business Improvement Districts And Local Government In The Provision Of Public Goods

  • Meltzer, Rachel
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    Business Improvement Districts (BIDs) privately supplement local public goods, and theory predicts that the public sector will interact with BIDs in their provision of local services. This paper provides the first empirical study of the sub-municipal effect of BIDs on the allocation of publicly provided services. Using unique, neighborhood-level data from New York City, I find that BIDs are associated with a significant, but substantively small, shift in the allocation of police and sanitation services. However, after instrumenting for BID presence, any significant effect of BIDs on public spending and service provision disappears. Together the results indicate that there is little or no interaction between public and private governments in the provision of local services.

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    Article provided by National Tax Association in its journal National Tax Journal.

    Volume (Year): 64 (2011)
    Issue (Month): 3 (September)
    Pages: 863-89

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    Handle: RePEc:ntj:journl:v:64:y:2011:i:3:p:863-89
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    1. Case, Anne C. & Rosen, Harvey S. & Hines, James Jr., 1993. "Budget spillovers and fiscal policy interdependence : Evidence from the states," Journal of Public Economics, Elsevier, vol. 52(3), pages 285-307, October.
    2. Brueckner, Jan K., 1998. "Testing for Strategic Interaction Among Local Governments: The Case of Growth Controls," Journal of Urban Economics, Elsevier, vol. 44(3), pages 438-467, November.
    3. Cheung, Ron, 2008. "The interaction between public and private governments: An empirical analysis," Journal of Urban Economics, Elsevier, vol. 63(3), pages 885-901, May.
    4. Bergstrom, Theodore C & Rubinfeld, Daniel L & Shapiro, Perry, 1982. "Micro-Based Estimates of Demand Functions for Local School Expenditures," Econometrica, Econometric Society, vol. 50(5), pages 1183-1205, September.
    5. Schokkaert, Erik, 1987. "Preferences and demand for local public spending," Journal of Public Economics, Elsevier, vol. 34(2), pages 175-188, November.
    6. Leah Brooks, 2006. "Volunteering To Be Taxed: Business Improvement Districts And The Extra-Governmental Provision Of Public Safety," Departmental Working Papers 2006-04, McGill University, Department of Economics.
    7. Aronsson, Thomas & Lundberg, Johan & Wikstrom, Magnus, 2000. "The impact of regional public expenditures on the local decision to spend," Regional Science and Urban Economics, Elsevier, vol. 30(2), pages 185-202, March.
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