IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v28y2000i4p309-334.html
   My bibliography  Save this article

Urban Malls, Tax Base Migration, and State Intergovernmental Aid

Author

Listed:
  • Stan Chervin

    (Tennessee Advisory Commission on Intergovernmental Relations)

  • Kelly Edmiston

    (Georgia State University)

  • Matthew N. Murray

    (University of Tennessee)

Abstract

Decentralized systems of government finance give rise to fiscal disparities due to interjurisdictional variations in tax bases and expenditure needs. Intergovernmental aid is used to address such disparities. This article explores changes in local tax capacity and intergovernmental aid resulting from urban shopping malls that extract retail sales and sales tax revenue away from surrounding areas, especially rural counties. A model is developed and estimated to determine the impact of urban malls on local government sales tax bases, controlling for sales tax rate differentials and other factors. The results reveal a 15.9% decline in the sales tax base for counties in close proximity to two newmalls. The analysis is extended to examine impacts of changing local tax capacity on state education aid. Based on the programconsidered here, less than 20% of the loss in own-source revenue is recovered through increased aid.

Suggested Citation

  • Stan Chervin & Kelly Edmiston & Matthew N. Murray, 2000. "Urban Malls, Tax Base Migration, and State Intergovernmental Aid," Public Finance Review, , vol. 28(4), pages 309-334, July.
    • Handle: RePEc:sae:pubfin:v:28:y:2000:i:4:p:309-334
    DOI: 10.1177/109114210002800402
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114210002800402
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114210002800402?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
    ---><---

    References listed on IDEAS

    as
    1. repec:adr:anecst:y:1988:i:9:p:07 is not listed on IDEAS
    2. Downes, Thomas A. & Pogue, Thomas F., 1994. "Adjusting School Aid Formulas for the Higher Cost of Educating Disadvantaged Students," National Tax Journal, National Tax Association, vol. 47(1), pages 89-110, March.
    3. James B. Davies, 1988. "Family Size, Household Production, and Life Cycle Saving," Annals of Economics and Statistics, GENES, issue 9, pages 141-165.
    4. Downes, Thomas A. & Pogue, Thomas F., 1994. "Adjusting School Aid Formulas for the Higher Cost of Educating Disadvantaged Students," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(1), pages 89-110, March.
    5. Ronald C. Fisher, 1980. "Local Sales Taxes: Tax Rate Differentials, Sales Loss, and Revenue Estimation," Public Finance Review, , vol. 8(2), pages 171-188, April.
    6. Yadav, S. & Otsuka, K. & David, C. C., 1992. "Segmentation in rural financial markets: the case of Nepal," World Development, Elsevier, vol. 20(3), pages 423-436, March.
    7. Thomas A. Downes & Thomas F. Pogue, 1992. "Intergovernmental Aid To Reduce Fiscal Disparities: Problems of Definition and Measurement," Public Finance Review, , vol. 20(4), pages 468-482, October.
    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. Jason M. Fletcher & Matthew N. Murray, 2006. "Competition over the Tax Base in the State Sales Tax," Public Finance Review, , vol. 34(3), pages 258-281, May.
    2. Richard Hawkins & Matthew N. Murray, 2004. "Explaining Interjurisdictional Variations in Local Sales Tax Yield," Public Finance Review, , vol. 32(1), pages 82-104, January.
    3. William F. Fox & Matthew N. Murray, 2005. "Sales Taxation in a Global Economy," Contributions to Economic Analysis, in: Taxing the Hard-to-tax: Lessons from Theory and Practice, pages 221-244, Emerald Group Publishing Limited.
    4. Rossitza B. Wooster & Joshua W. Lehner, 2010. "Reexamining The Border Tax Effect: A Case Study Of Washington State," Contemporary Economic Policy, Western Economic Association International, vol. 28(4), pages 511-523, October.

    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. Bo Zhao, 2020. "How to Design a State Education Aid Formula That Is Equitable, Adequate, and Politically Feasible: The Case of Connecticut," Working Papers 21-1, Federal Reserve Bank of Boston.
    2. Tae Ho Eom & William Duncombe & Phuong Nguyen-Hoang & John Yinger, 2014. "The Unintended Consequences of Property Tax Relief: New York’s STAR Program," Education Finance and Policy, MIT Press, vol. 9(4), pages 446-480, October.
    3. Marvin E. Dodson & Thomas A. Garrett, 2004. "Inefficient Education Spending in Public School Districts: A Case for Consolidation?," Contemporary Economic Policy, Western Economic Association International, vol. 22(2), pages 270-280, April.
    4. Bo Zhao, 2023. "Estimating the cost function of connecticut public K–12 education: implications for inequity and inadequacy in school spending," Education Economics, Taylor & Francis Journals, vol. 31(4), pages 439-470, July.
    5. Miriam Hortas-Rico & Vicente Rios, 2020. "Is there an optimal size for local governments? A spatial panel data model approach," Regional Studies, Taylor & Francis Journals, vol. 54(7), pages 958-973, July.
    6. Duncombe, William & Yinger, John, 2000. "Financing higher student performance standards: the case of New York State," Economics of Education Review, Elsevier, vol. 19(4), pages 363-386, October.
    7. Duncombe, William & Yinger, John, 2005. "How much more does a disadvantaged student cost?," Economics of Education Review, Elsevier, vol. 24(5), pages 513-532, October.
    8. William Duncombe & John Yinger, 2001. "Does School Consolidation Cut Costs?," Center for Policy Research Working Papers 33, Center for Policy Research, Maxwell School, Syracuse University.
    9. William Duncombe & Anna Lukemeyer & John Yinger, 2008. "The No Child Left Behind Act," Public Finance Review, , vol. 36(4), pages 381-407, July.
    10. repec:max:cprpbr:28 is not listed on IDEAS
    11. Jeremy Clark & Susmita Roy Das & Andrea Menclova, 2017. "Evaluating the Effectiveness of School Funding and Targeting Different Measures of Student Disadvantage: Evidence from New Zealand," The Economic Record, The Economic Society of Australia, vol. 93(303), pages 576-599, December.
    12. repec:max:cprpbr:10 is not listed on IDEAS
    13. Bo Zhao & David Coyne, 2015. "A More Equitable Approach to Cutting Intergovernmental Aid," Public Finance Review, , vol. 43(1), pages 32-52, January.
    14. Rhys Andrews, 2013. "Local government size and efficiency in labor-intensive public services: evidence from local educational authorities in England," Chapters, in: Santiago Lago-Peñas & Jorge Martinez-Vazquez (ed.), The Challenge of Local Government Size, chapter 7, pages 171-188, Edward Elgar Publishing.
    15. Christopher C. Klein, 2007. "Efficiency versus Effectiveness: Interpreting Education Production Studies," Working Papers 200703, Middle Tennessee State University, Department of Economics and Finance.
    16. Phuong Nguyen-Hoang & Ryan Yeung & Alexander Bogin, 2014. "No Base Left Behind," Public Finance Review, , vol. 42(4), pages 439-465, July.
    17. Audun Langørgen, 2015. "A structural approach for analyzing fiscal equalization," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(3), pages 376-400, June.
    18. Phuong Nguyen-Hoang, 2014. "Tax Increment Financing and Education Expenditures: The Case of Iowa," Education Finance and Policy, MIT Press, vol. 9(4), pages 515-540, October.
    19. Andrews, Matthew & Duncombe, William & Yinger, John, 2002. "Revisiting economies of size in American education: are we any closer to a consensus?," Economics of Education Review, Elsevier, vol. 21(3), pages 245-262, June.
    20. Thomas F. Pogue, 1996. "Mounting fiscal pressures: how can state and local governments cope?," Monograph, Federal Reserve Bank of Kansas City, number 1996mfhcsalg, March.
    21. Rhys Andrews, 2012. "Local Government Size and Efficiency in Labour Intensive Public Services: Evidence from Local Educational Authorities in England," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1214, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    22. Richard Buddin & Brian Gill & Ron Zimmer, 2004. "Examining Federal Impact Aid's Reimbursement for Local School Districts," Contemporary Economic Policy, Western Economic Association International, vol. 22(4), pages 534-543, October.

    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:sae:pubfin:v:28:y:2000:i:4:p:309-334. 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: SAGE Publications (email available below). General contact details of provider: .

    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.