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The Fiscal Impacts of Urban Sprawl: Evidence From U.S. County Areas

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  • Christopher B. Goodman

Abstract

This paper examines the fiscal impacts of urban development patterns in the United States. Previous studies have indicated that it is costly to provide public services in areas with low‐density, spatially expansive development, leading to higher per capita expenditures. However, theory would suggest alternate outcomes. This paper examines this question using a panel dataset of U.S. urban county areas and a specification allowing for potential nonlinearity between development patterns and per capita expenditures. Estimates indicate that the spatial extent of development is the most important factor in expenditures; it is less costly to provide public services when development is more compact. Higher density increases per capita expenditures; however, the effects are small.

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  • Christopher B. Goodman, 2019. "The Fiscal Impacts of Urban Sprawl: Evidence From U.S. County Areas," Public Budgeting & Finance, Wiley Blackwell, vol. 39(4), pages 3-27, December.
    • Handle: RePEc:bla:pbudge:v:39:y:2019:i:4:p:3-27
    DOI: 10.1111/pbaf.12239
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    2. Deslatte, Aaron & Szmigiel-Rawska, Katarzyna & Tavares, António F. & Ślawska, Justyna & Karsznia, Izabela & Łukomska, Julita, 2022. "Land use institutions and social-ecological systems: A spatial analysis of local landscape changes in Poland," Land Use Policy, Elsevier, vol. 114(C).
    3. Yan Yan & Hui Liu & Ningcheng Wang & Shenjun Yao, 2021. "How Does Low-Density Urbanization Reduce the Financial Sustainability of Chinese Cities? A Debt Perspective," Land, MDPI, vol. 10(9), pages 1-18, September.

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