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Interlocal Competition and Local Fiscal Health

A sizeable literature documents patterns of competition between local governments in metropolitan regions, while also exploring variation in such local government financial attributes as efficiency, budget size, fiscal disparity, and service equity, which are frequently bound together under the concept of fiscal health. However, the concept of fiscal health is broader and more sophisticated than any one fiscal measure, and empirical studies tend to focus only on multi-purpose governments. This study brings these concepts together to investigate how interlocal competition affects the fiscal health of different government types. This study answers three questions: What is a measure of fiscal health applicable to different government types? How does competition among cities and towns affect local fiscal health? How does the proliferation of special districts affect the fiscal health of local governments? This study measures the concept of fiscal health using factor analysis and examines the effects of competition among different government types on the fiscal health of both municipalities and special districts. Utilizing a pooled cross-sectional time-series approach and data from the U.S. Census Bureau for metropolitan statistical areas for every five years between 1972 and 2012,the study finds that competition among municipalities has adverse influences on the fiscal health of both municipalities and special districts, whereas interlocal competition among special districts results in improved fiscal health for special districts without a significant effect on the fiscal health of municipalities.

Identiferoai:union.ndltd.org:unt.edu/info:ark/67531/metadc1703387
Date05 1900
CreatorsPark, Hyunggun
ContributorsKrueger, Skip, Collins, Brian, Shi, Yu
PublisherUniversity of North Texas
Source SetsUniversity of North Texas
LanguageEnglish
Detected LanguageEnglish
TypeThesis or Dissertation
Formatvi, 156 pages, Text
RightsPublic, Park, Hyunggun, Copyright, Copyright is held by the author, unless otherwise noted. All rights Reserved.

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