Suchergebnisse

This paper examines (1) whether revenue diversification leads to greater instability as represented by revenue volatility, and (2) whether revenue complexity produces fiscal illusion as represented by increased public expenditures. These questions are answered by analyzing panel data on municipal governments between 1970 and 2002. The findings suggest that fiscal illusion does not occur among municipal governments, but revenue diversification does influence levels of volatility. However, the way in which municipalities diversify is important for achieving revenue stability. When diversification is considered in isolation, both tax and nontax diversification reduce revenue volatility. When diversification and complexity are considered simultaneously, the statistical effect of nontax diversification disappears. But, when a tax revenue structure is both diversified and complex, the likely outcome is greater revenue volatility rather than stability.

This paper examines the impact of tax increment financing (TIF) on business property value. Using parcel-level data from Milwaukee, Wisconsin, from 1980 to1999, a semilog econometric model is estimated using fixed effects regression. A two-stage estimation process is also used to test and correct for potential self-selection bias and endogeneity associated with TIF implementation. The findings suggest that the provision of public services offered within TIF districts is capitalized into business property value over time. The magnitude of this effect is the largest of all factors considered. The analysis also reveals that self-selection bias is likely associated with TIF implementation. The endogenously determined probability that a property will be placed within a TIF district is positively correlated with the property's value. Finally, the analysis reveals that the impact of TIF might be underestimated in the absence of corrections for self-selection bias and endogeneity.

Although studies have shown a theoretical and empirical link between defense spending and economic growth and between economic growth and tax policy, the impact of defense spending on federal tax policy remains largely unexplored. This paper proposes a theoretical model and empirical test to explore the direct and indirect effects of defense spending on federal tax policy. The findings suggest that consumption expenditures for national defense directly influence the federal corporate income tax rate. However, the analysis finds no indirect relationship between defense spending and federal tax policy mediated through economic growth.

In this paper, we ask whether principles—relevant institutions, including administrative reform, legal and judicial support, and information and communication technology (ICT)—and principals—ordinary people that are capable, knowledgeable, and willing—can help enhance accountability of street-level bureaucrats (SLBs) by mitigating unwarranted discretionary behaviors. We examined the New York City Police Department by constructing and analyzing a unique dataset drawn from multiple sources and by using the SLB literature to inform our empirical model specification. Fixed effects regression analysis revealed the potential of principles and principals in motivating or reducing police officers' use of force resulting in substantiated civilian complaints. Specifically, proactive policing strategies, exonerated civilian complaint dispositions, court summons following arrests, and ICT are the principles, and a low-poverty population served by police are the principals we found to influence discretionary police behavior.

How diversified are small town revenues? Revenue diversification is analyzed among towns governed by town meetings. Using previously developed diversification measures, the findings confirm that these localities draw from less diverse revenue streams than other state and local governments. The reasons for these variations include differences in home rule status as well as tax and expenditure limitations imposed by states. The authors suggest that revenue allocation in these jurisdictions is substantively different from other forms of local government because these communities rely much less on sales taxation than states and municipalities. Their essay proposes possible options for improvement, along with other criteria by which small towns can assess their revenue diversification.

The Federal Highway Administration uses the term gaps to be closed to identify an incomplete roadway system. Through a national survey of state departments of transportation (DOTs), this article provides a comprehensive examination of the prevalence and location of gaps to be closed, reasons for the existence of such gaps, and the current state of practice for addressing the issue of gaps to be closed. The authors find that seven states currently have gaps to be closed, which can be attributed to a lack of funding, citizen and interest group opposition, the presence of historical landmarks, an impasse on construction plans, and other political and environmental issues. They also find evidence of formal policies and specific management approaches among the states to address the issue of gaps to be closed. Conclusions are drawn from the survey results and are provided as suggestions for states and local communities to address the issue of gaps to be closed.