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Housing values and jurisdictional fragmentation

Author

Listed:
  • John William Hatfield

    (University of Texas at Austin)

  • Katrina Kosec

    (International Food Policy Research Institute)

  • Luke P. Rodgers

    (Florida State University)

Abstract

We investigate the impact of the number of local governments in a metropolitan area on housing values within the United States. We find that metropolitan areas with one standard deviation more counties have housing values that are almost 11% higher. This difference may be driven by the fact that we also find higher wages (accounting for worker characteristics) in areas with more local governments. Moreover, we find that areas with more local governments have more business-friendly policies, such as freer labor markets, but similar levels of taxation and spending. The number of local governments does not seem to significantly impact environmental quality, educational outcomes, or crime.

Suggested Citation

  • John William Hatfield & Katrina Kosec & Luke P. Rodgers, 2024. "Housing values and jurisdictional fragmentation," Public Choice, Springer, vol. 201(1), pages 83-122, October.
    • Handle: RePEc:kap:pubcho:v:201:y:2024:i:1:d:10.1007_s11127-024-01160-6
    DOI: 10.1007/s11127-024-01160-6
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    More about this item

    Keywords

    Federalism; Jurisdictional fragmentation; Interjurisdictional competition; Government performance;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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