Fiscal and growth spillovers in large urban areas
This paper looks for empirical evidence on spillovers occurring between central cities and their suburbs, both on the fiscal side and on the growth of population and output. To test these hypotheses we specify a dynamic model with population and output both in the central city and in the suburbs as endogenous variables and with fiscal variables in the central city and in the suburbs as covariates. The model is estimated with a panel of data of twenty-eight metropolitan areas in Spain for the period 1992-2001.The main findings are that the capital stock in the central city promotes growth both in the city and in the suburbs. Also, higher growth in the central city translates into higher long run growth in the suburbs. These results are indicative of the potential welfare gains of both, concentrating financial resources in the central city, and of the implementation of existing proposals of metropolitan consolidation.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: Carrer del Tinent Coronel Valenzuela 1-11, 08034 Barcelona|
Phone: 93 403 46 46
Fax: 93 403 98 32
Web page: http://www.ieb.ub.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gilles Duranton & Diego Puga, 2001.
"From sectoral to functional urban specialisation,"
dpuga-01-01, University of Toronto, Department of Economics.
- Gilles Duranton & Diego Puga, 2001. "From sectoral to functional urban specialisation," LSE Research Online Documents on Economics 20101, London School of Economics and Political Science, LSE Library.
- Gilles Duranton & Diego Puga, 2001. "From Sectoral To Functional Urban Specialisation," CEP Discussion Papers dp0511, Centre for Economic Performance, LSE.
- Duranton, Gilles & Puga, Diego, 2001. "From Sectoral to Functional Urban Specialization," CEPR Discussion Papers 2971, C.E.P.R. Discussion Papers.
- Gilles Duranton & Diego Puga, 2002. "From Sectoral to Functional Urban Specialization," NBER Working Papers 9112, National Bureau of Economic Research, Inc.
- 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.
- Andrew F. Haughwout, 2000. "Public infrastructure investments, productivity and welfare in fixed geographic areas," Staff Reports 104, Federal Reserve Bank of New York.
- Andrew Haughwout & Robert Inman & Steven Craig & Thomas Luce, 2000. "Local Revenue Hills: A General Equilibrium Specification with Evidence from Four U.S. Cities," NBER Working Papers 7603, National Bureau of Economic Research, Inc.
- Blomquist, Glenn C & Berger, Mark C & Hoehn, John P, 1988. "New Estimates of Quality of Life in Urban Areas," American Economic Review, American Economic Association, vol. 78(1), pages 89-107, March.
- Kremers, Jeroen J M & Ericsson, Neil R & Dolado, Juan J, 1992.
"The Power of Cointegration Tests,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 54(3), pages 325-48, August.
- Deitz, Richard, 1998. "A Joint Model of Residential and Employment Location in Urban Areas," Journal of Urban Economics, Elsevier, vol. 44(2), pages 197-215, September.
- Richard Voith, 1994. "Do suburbs need cities?," Working Papers 93-27/R, Federal Reserve Bank of Philadelphia.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Joseph Gyourko & Joseph S. Tracy, 1986.
"The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets,"
NBER Working Papers
2040, National Bureau of Economic Research, Inc.
- Gyourko, Joseph & Tracy, Joseph, 1989. "The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1208-31, October.
- Fenge, Robert & Meier, Volker, 2002.
"Why cities should not be subsidized,"
Journal of Urban Economics,
Elsevier, vol. 52(3), pages 433-447, November.
- Jordan Rappaport, 1999. "Local Growth Theory," CID Working Papers 19, Center for International Development at Harvard University.
- Rappaport, J., 2000.
"Local Growth Empirics,"
23, Chicago - Graduate School of Business.
- Mills, Edwin S. & Price, Richard, 1984. "Metropolitan suburbanization and central city problems," Journal of Urban Economics, Elsevier, vol. 15(1), pages 1-17, January.
- Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
- Edward L. Glaeser & Jed Kolko & Albert Saiz, 2000.
Harvard Institute of Economic Research Working Papers
1901, Harvard - Institute of Economic Research.
- 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.
- Richard Voith, 1992. "City and suburban growth: substitutes or complements?," Business Review, Federal Reserve Bank of Philadelphia, issue Sep, pages 21-33.
- Gyourko, Joseph & Tracy, Joseph, 1991. "The Structure of Local Public Finance and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 774-806, August.
- Audretsch, David B, 1998.
"Agglomeration and the Location of Innovative Activity,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 14(2), pages 18-29, Summer.
- Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," CEPR Discussion Papers 1974, C.E.P.R. Discussion Papers.
- Boskin, Michael J, 1973. "Local Government Tax and Product Competition and the Optimal Provision of Public Goods," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 203-10, Jan.-Feb..
- Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ieb:wpaper:226362art128. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.