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Explaining Local Growth-Management Policies: The Role of Public Goods

Author(s): Donna Driscoll | Dennis Halcoussis | Anton D. Lowenberg

Journal: American Journal of Economics and Business Administration
ISSN 1945-5488

Volume: 2;
Issue: 1;
Start page: 45;
Date: 2010;
Original page

Keywords: Local public goods | local expenditure | public infrastructure | land-use regulations

Problem statement: Local jurisdictions such as cities and counties enact a wide variety of growth-management regulations, such as zoning ordinances and growth-promoting incentives. Approach: Use a theory of local public goods to identify the conditions under which jurisdictions are most likely to implement growth-management regulations. Predictions of the theory regarding variation in pro-growth measures across jurisdictions were tested using data on California cities. Results: Communities whose current expenditures on public amenities are high typically have more extensive growth-promoting policies, while communities that already have substantial public infrastructure in place are less likely to implement effective pro-growth measures. Conclusion: These findings suggest that changes in stocks and flows of public goods can be used as predictors of the incidence of growth controls.
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