IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v52y1987i3p245-255.html
   My bibliography  Save this article

Municipal annexation and local monopoly power

Author

Listed:
  • Rodolfo Gonzalez
  • Stephen Mehay

Abstract

We have found that the fiscal power of a city can be increased by extension of its borders within a land area that is homogeneous with respect to earning opportunities, even when numerous rival jurisdictions exist in the area. We hypothesized that extending municipal boundaries will have a positive effect on discretionary outlays and on expenditures per capita. The evidence presented supports these hypotheses. Furthermore, municipal wages appear to be significantly increased in cities experiencing annexation growth. Therefore, we would expect to find that municipal employees are more inclined to favor annexation than the rest of the electorate. From a policy standpoint, this study suggests that significant perverse effects on fiscal efficiency may follow adoption of legal reforms that facilitate the ability of municipalities to extend their borders, or that restrict the formation of new municipalities. Copyright Martinus Nijhoff Publishers 1987

Suggested Citation

  • Rodolfo Gonzalez & Stephen Mehay, 1987. "Municipal annexation and local monopoly power," Public Choice, Springer, vol. 52(3), pages 245-255, January.
    • Handle: RePEc:kap:pubcho:v:52:y:1987:i:3:p:245-255
    DOI: 10.1007/BF00116707
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF00116707
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF00116707?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bartel, Ann & Lewin, David, 1981. "Wages and Unionism in the Public Sector: The Case of Police," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 53-59, February.
    2. Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, vol. 63(3), pages 280-296, June.
    3. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
    4. Dolores Martin & Richard McKenzie, 1975. "Bureaucratic profits, migration costs, and the consolidation of local government," Public Choice, Springer, vol. 23(1), pages 95-100, September.
    5. Epple, Dennis & Zelenitz, Allan, 1981. "The Implications of Competition among Jurisdictions: Does Tiebout Need Politics?," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1197-1217, December.
    6. Romer, Thomas & Rosenthal, Howard, 1979. "The elusive median voter," Journal of Public Economics, Elsevier, vol. 12(2), pages 143-170, October.
    7. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922, September.
    8. Smith, Sharon P., 1977. "Government wage differentials," Journal of Urban Economics, Elsevier, vol. 4(3), pages 248-271, July.
    9. Wagner, Richard E & Weber, Warren E, 1975. "Competition, Monopoly, and the Organization of Government in Metropolitan Areas," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 661-684, December.
    10. Rodolfo Gonzalez & Stephen Mehay, 1985. "Bureaucracy and the divisibility of local public output," Public Choice, Springer, vol. 45(1), pages 89-101, January.
    11. Filer, John E & Kenny, Lawrence W, 1980. "Voter Reaction to City-County Consolidation Referenda," Journal of Law and Economics, University of Chicago Press, vol. 23(1), pages 179-190, April.
    12. Stephen Mehay, 1981. "The expenditure effects of municipal annexation," Public Choice, Springer, vol. 36(1), pages 53-62, January.
    13. Bernard Lentz, 1981. "Political and economic determinants of county government pay," Public Choice, Springer, vol. 36(2), pages 253-271, January.
    14. Gordon Tullock, 1974. "Dynamic hypothesis on bureaucracy," Public Choice, Springer, vol. 19(1), pages 127-131, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alexander Eck & Carolin Fritzsche & Jan Kluge & Joachim Ragnitz & Felix Rösel, 2015. "Fiscal Capacity and Determining Structural Characteristics of the Eastern German Laender," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 76, May.
    2. Pengju Zhang & Phuong Nguyen‐Hoang & Na Chen, 2022. "The impact of home rule on municipal boundary and fiscal expansion: Evidence from Texas," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1442-1466, November.
    3. Agrawal, Sandeep & Gretzinger, Cody & Lowerre, Andrew, 2022. "Trends, motivations, and land use outcomes of municipal annexation: A case of Alberta, Canada," Land Use Policy, Elsevier, vol. 112(C).
    4. Russell M. Smith & Whitney B. Afonso, 2016. "Fiscal Impact of Annexation Methodology on Municipal Finances in North Carolina," Growth and Change, Wiley Blackwell, vol. 47(4), pages 664-681, December.
    5. Chris Mothorpe & W. William Woolsey & Russell S. Sobel, 2021. "Do political motivations and strategic considerations influence municipal annexation patterns?," Public Choice, Springer, vol. 188(3), pages 385-405, September.
    6. John Meligrana, 2007. "Testing the Elastic-Cities Concept within a Nonmetropolitan Environment: Evidence from British Columbia, Canada, 1971 to 2001," Environment and Planning A, , vol. 39(3), pages 700-727, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeffrey Zax, 1988. "The Effects of Jurisdiction Types and Numbers on Local Public Finance," NBER Chapters, in: Fiscal Federalism: Quantitative Studies, pages 79-106, National Bureau of Economic Research, Inc.
    2. Stephen Mehay & Kenneth Seiden, 1986. "Municipal residency laws and local public budgets," Public Choice, Springer, vol. 48(1), pages 27-35, January.
    3. Rodolfo Gonzalez & Roger Folsom & Stephen Mehay, 1989. "Bureaucracy, publicness and local government expenditures revisited: Comment," Public Choice, Springer, vol. 62(1), pages 71-77, July.
    4. Eric J. Brunner & Stephen L. Ross, 2007. "How Decisive Is the Decisive Voter?," Working papers 2007-28, University of Connecticut, Department of Economics, revised Aug 2008.
    5. D.P. Doessel & Abbas Valadkhani, 2002. "Public Finance and The Size of Government: A Literature Review and Econometric Results for Fiji," School of Economics and Finance Discussion Papers and Working Papers Series 108, School of Economics and Finance, Queensland University of Technology.
    6. Marc Baudry & Matthieu Leprince & Cyriaque Moreau, 2002. "Préférences révélées, bien public local et électeur médian : tests sur données françaises," Économie et Prévision, Programme National Persée, vol. 156(5), pages 125-146.
    7. Gebhard Kirchgassner, 2002. "The effects of fiscal institutions on public finance: a survey of the empirical evidence," Chapters, in: Stanley L. Winer & Hirofumi Shibata (ed.), Political Economy and Public Finance, chapter 9, Edward Elgar Publishing.
    8. Stephen Mehay, 1981. "The expenditure effects of municipal annexation," Public Choice, Springer, vol. 36(1), pages 53-62, January.
    9. Rexford E. Santerre, 1991. "Leviathan or Median-Voter: Who Runs City Hall?," Eastern Economic Journal, Eastern Economic Association, vol. 17(1), pages 5-14, Jan-Mar.
    10. Keith Dowding & Peter John & Stephen Biggs, 1994. "Tiebout : A Survey of the Empirical Literature," Urban Studies, Urban Studies Journal Limited, vol. 31(4-5), pages 767-797, May.
    11. Tidiane Ly, 2018. "Sub-metropolitan tax competition with household and capital mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(5), pages 1129-1169, October.
    12. Randall Holcombe, 2005. "Government growth in the twenty-first century," Public Choice, Springer, vol. 124(1), pages 95-114, July.
    13. Benoît Le Maux, 2009. "Governmental behavior in representative democracy: a synthesis of the theoretical literature," Public Choice, Springer, vol. 141(3), pages 447-465, December.
    14. Dennis Mueller & Peter Murrell, 1986. "Interest groups and the size of government," Public Choice, Springer, vol. 48(2), pages 125-145, January.
    15. Doessel, Darrel & Valadkhani, Abbas, 2003. "The Demand for Current Public Expenditure in Fiji: Theory and Empirical Results," MPRA Paper 50392, University Library of Munich, Germany.
    16. Stanley L. Winer & Walter Hettich, 2002. "The Political Economy of Taxation: Positive and Normative Analysis when Collective Choice Matters," Carleton Economic Papers 02-11, Carleton University, Department of Economics, revised 2004.
    17. George Tridimas & Stanley L. Winer, 2004. "A Contribution to the Political Economy of Government Size: 'Demand', 'Supply' and 'Political Influence'," Carleton Economic Papers 04-04, Carleton University, Department of Economics.
    18. James Ferris, 1983. "Demands for public spending: An attitudinal approach," Public Choice, Springer, vol. 40(2), pages 135-154, January.
    19. Stephen L. Mehay & Rodolfo A. Gonzalez, 1987. "Outside Information and the Monopoly Power of a Public Bureau: An Empirical Analysis," Public Finance Review, , vol. 15(1), pages 61-75, January.
    20. James Ferris, 1985. "Interrelationships among public spending preferences: A micro analysis," Public Choice, Springer, vol. 45(2), pages 139-153, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:52:y:1987:i:3:p:245-255. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.