IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

If You Build It, Will They Come?: Fiscal Federalism, Local Provision of Public Tourist Amenities, and the Vision Iowa Fund

  • Quackenbush, Austin
  • Premkumar, Deepak
  • Artz, Georgeanne M.
  • Orazem, Peter

The philosophy of fiscal federalism presumes that local communities will under- or over-provide public amenities in the presence of externalities. We test this hypothesis using data from Vision Iowa, a state program which provided partial funding to communities to build tourist attractions. We find a 1% increase in investment increased county taxable retail sales 0.9%. The State's return, from program-induced sales tax revenue, averaged 9.2% annually. Local communities' returns averaged 0.9% and we find a significant increase in surrounding areas' sales. This suggests that without state subsidies, communities would undersupply public amenities aimed at attracting visitors.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers Archive with number 34375.

in new window

Date of creation: 08 Oct 2011
Date of revision:
Publication status: Published in Review of Regional Studies, Winter 2013, vol. 43 no. 2,3, pp. 155-173
Handle: RePEc:isu:genres:34375
Contact details of provider: Postal:
Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070

Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page:

More information through EDIRC

References listed on IDEAS
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.:

as in new window
  1. Bernard F. Lentz & David N. Laband, 2009. "The Impact of Intercollegiate Athletics on Employment in the Restaurant and Accommodations Industries," Journal of Sports Economics, The North American Association of Sports Economists, vol. 10(4), pages 351-368, August.
  2. Holl, Adelheid, 2004. "Manufacturing location and impacts of road transport infrastructure: empirical evidence from Spain," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 341-363, May.
  3. Christopher H. Wheeler, 2001. "A Note on the Spatial Correlation Structure of County-Level Growth in the U.S," Journal of Regional Science, Wiley Blackwell, vol. 41(3), pages 433-449.
  4. Steven C. Deller & Tsung-Hsiu (Sue) Tsai & David W. Marcouiller & Donald B.K. English, 2001. "The Role of Amenities and Quality of Life In Rural Economic Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 352-365.
  5. Zodrow, George R. & Mieszkowski, Peter, 1986. "Pigou, Tiebout, property taxation, and the underprovision of local public goods," Journal of Urban Economics, Elsevier, vol. 19(3), pages 356-370, May.
  6. Jeffrey Zax, 1988. "The Effects of Jurisdiction Types and Numbers on Local Public Finance," NBER Chapters, in: Fiscal Federalism: Quantitative Studies, pages 79-106 National Bureau of Economic Research, Inc.
  7. Edward L. Glaeser, 1995. "The Incentive Effects of Property Taxes on Local Governments," NBER Working Papers 4987, National Bureau of Economic Research, Inc.
  8. Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2007. "The Geographic Diversity of U.S. Nonmetropolitan Growth Dynamics: A Geographically Weighted Regression Approach," Economics Working Paper Series 0704, Oklahoma State University, Department of Economics and Legal Studies in Business.
  9. Romana Khan & Peter F. Orazem & Daniel M. Otto, 2001. "Deriving Empirical Definitions of Spatial Labor Markets: The Roles of Competing Versus Complementary Growth," Journal of Regional Science, Wiley Blackwell, vol. 41(4), pages 735-756.
  10. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September.
  11. Alfredo Marvao Pereira & Oriol Roca Sagalés, 2002. "Spillover effects of public capital formation : evidence from the spanish regions," Working Papers wpdea0210, Department of Applied Economics at Universitat Autonoma of Barcelona.
  12. Heywood T. Sanders, 2002. "Convention Myths and Markets: A Critical Review of Convention Center Feasibility Studies," Economic Development Quarterly, W.E. Upjohn Institute for Employment Research, vol. 16(3), pages 195-210, August.
  13. Timothy R. Wojan & Dayton M. Lambert & David A. McGranahan, 2007. "Emoting with their feet: Bohemian attraction to creative milieu -super-†," Journal of Economic Geography, Oxford University Press, vol. 7(6), pages 711-736, November.
  14. Jeffrey P. Cohen & Catherine Morrison Paul, 2007. "The Impacts Of Transportation Infrastructure On Property Values: A Higher-Order Spatial Econometrics Approach," Journal of Regional Science, Wiley Blackwell, vol. 47(3), pages 457-478.
  15. M. Rose Olfert & Mark D. Partridge, 2010. "Best Practices in Twenty-First-Century Rural Development and Policy," Growth and Change, Wiley Blackwell, vol. 41(2), pages 147-164.
  16. John Siegfried & Andrew Zimbalist, 2002. "A Note on the Local Economic Impact of Sports Expenditures," Journal of Sports Economics, The North American Association of Sports Economists, vol. 3(4), pages 361-366, November.
  17. Roger H. Gordon, 1983. "An Optimal Taxation Approach to Fiscal Federalism," The Quarterly Journal of Economics, Oxford University Press, vol. 98(4), pages 567-586.
  18. Shirley, Chad & Winston, Clifford, 2004. "Firm inventory behavior and the returns from highway infrastructure investments," Journal of Urban Economics, Elsevier, vol. 55(2), pages 398-415, March.
  19. Thompson, Samuel B., 2011. "Simple formulas for standard errors that cluster by both firm and time," Journal of Financial Economics, Elsevier, vol. 99(1), pages 1-10, January.
  20. Bruce W. Hamilton, 1975. "Zoning and Property Taxation in a System of Local Governments," Urban Studies, Urban Studies Journal Limited, vol. 12(2), pages 205-211, June.
  21. Santiago M. Pinto, 2007. "Tax Competition In The Presence Of Interjurisdictional Externalities: The Case Of Crime Prevention," Journal of Regional Science, Wiley Blackwell, vol. 47(5), pages 897-913.
  22. Nord, Mark & Cromartie, John, 1997. "Graphically Speaking: Migration: The increasing importance of rural natural amenities," Choices, Agricultural and Applied Economics Association, vol. 12(3).
  23. McGranahan, David A., 1999. "Natural Amenities Drive Rural Population Change," Agricultural Economics Reports 33955, United States Department of Agriculture, Economic Research Service.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:isu:genres:34375. 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: (Curtis Balmer)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.