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Regional fiscal cooperation in metropolitan areas: An exploration

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  • Andrew F. Haughwout

    (Woodrow Wilson School of Public and International Affairs, Princeton University.)

Abstract

This article explores the potential benefits and costs of regional cooperation on metropolitan area fiscal policies. After discussing the relationships between cities and suburbs, as well as the role of local fiscal policies in regional well-being, the article presents and tests a model for measuring benefit spillovers resulting from fiscal policies. The results show that state and local infrastructures have important effects on metropolitan property markets, and that current spending is less influential than the level of public capital in place in determining property values. State highway investments are found to reduce the attractiveness of metropolitan area locations. Enhancements to central city infrastructure are estimated to significantly increase suburban property values, and the results of some simple policy experiments are examined.© 1999 by the Association for Public Policy Analysis and Management.

Suggested Citation

  • Andrew F. Haughwout, 1999. "Regional fiscal cooperation in metropolitan areas: An exploration," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(4), pages 579-600.
  • Handle: RePEc:wly:jpamgt:v:18:y:1999:i:4:p:579-600
    DOI: 10.1002/(SICI)1520-6688(199923)18:4<579::AID-PAM3>3.0.CO;2-M
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    References listed on IDEAS

    as
    1. Voith Richard, 1993. "Changing Capitalization of CBD-Oriented Transportation Systems: Evidence from Philadelphia, 1970-1988," Journal of Urban Economics, Elsevier, vol. 33(3), pages 361-376, May.
    2. Haughwout, Andrew F., 1997. "Central city infrastructure investment and suburban house values," Regional Science and Urban Economics, Elsevier, vol. 27(2), pages 199-215, April.
    3. Peter Mieszkowski & Edwin S. Mills, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-147, Summer.
    4. Hulten, Charles R. & Schwab, Robert M., 1997. "A fiscal federalism approach to infrastructure policy," Regional Science and Urban Economics, Elsevier, vol. 27(2), pages 139-159, April.
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    Cited by:

    1. Sole-Olle, Albert, 2006. "Expenditure spillovers and fiscal interactions: Empirical evidence from local governments in Spain," Journal of Urban Economics, Elsevier, vol. 59(1), pages 32-53, January.
    2. Haughwout, Andrew F., 2002. "Public infrastructure investments, productivity and welfare in fixed geographic areas," Journal of Public Economics, Elsevier, vol. 83(3), pages 405-428, March.
    3. Marc Brunetto & Nadine Levratto, 2017. "Analysis of the job creation process in metropolitan areas: A spatial perspective," EconomiX Working Papers 2017-36, University of Paris Nanterre, EconomiX.
    4. Albert SolÈ-OllÈ & Elisabet Viladecans-Marsal, "undated". "Cities as engines of regional growth," Studies on the Spanish Economy 145, FEDEA.
    5. Hélia Silva & Linda Gonçalves Veiga & Miguel Portela, 2011. "Strategic Interaction in Local Fiscal Policy: Evidence from Portuguese Municipalities," NIPE Working Papers 23/2011, NIPE - Universidade do Minho.
    6. Mehmet Aldonat Beyzatlar & Mehmet Yeşim Kuştepeli, 2011. "Infrastructure, Economic Growth and Population Density in Turkey," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 4(3), pages 39-57, December.
    7. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 405-431, April.
    8. Katarzyna Kopczewska, 2011. "Roads as Channel of Centrifugal Policy Transfer. Spatial Interactions Model Revised," ERSA conference papers ersa11p720, European Regional Science Association.
    9. Katarzyna Kopczewska, 2013. "Roads as Channels of Centrifugal Policy Transfer: A Spatial Interaction Model Revised," Contemporary Economics, University of Finance and Management in Warsaw, vol. 7(3), September.
    10. Jen-Jia Lin & Yu-Hung Liu, 2012. "Developing regional cooperation strategies by multi-criteria decision making approaches," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 191-211, August.
    11. Albert Solé-Ollé, 2001. "Budget spillovers in a metropolitan area: typology and empirical evidence," Working Papers 2001/5, Institut d'Economia de Barcelona (IEB).
    12. Richard M. Bird & Enid Slack, 2004. "Fiscal Aspects of Metropolitan Governance," International Tax Program Papers 0401, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.
    13. Saito, Hitoshi & Hirota, Haruaki & Yunoue, Hideo & Miyaki, Miki, 2017. "Does municipal mergers internalize spatial spillover effects? Empirical evidence from Japanese municipalities," MPRA Paper 76833, University Library of Munich, Germany.
    14. 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.
    15. Albert Solé Ollé & Elisabet Viladecans Marsal, 2003. "Fiscal and growth spillovers in large urban areas," Working Papers 2003/1, Institut d'Economia de Barcelona (IEB).

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