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The Impact of Population Density on Municipal Government Expenditures

Author

Listed:
  • Randall G. Holcombe

    (Florida State University, Tallahassee)

  • DeEdgra W. Williams

    (Florida A&M University, Tallahassee)

Abstract

Data from 487 municipal governments with populations greater than 50,000 are examined to see the relationship between population density and per capita government expenditures. There is no statistically significant relationship between per capita total government expenditures and operational expenditures for cities smaller than 500,000, and for larger cities, higher population density is associated with higher per capita government expenditures. Infrastructure expenditures tend to decline with increases in population density for cities smaller than 500,000, whereas expenditures on services tend to increase with population density for cities larger than 500,000. The relationship between per capita total expenditures and population density has policy relevance because it indicates that when all government expenditures are taken into account, policies that increase population density will not reduce per capita government expenditures and, in larger cities, will lead to higher per capita government expenditures.

Suggested Citation

  • Randall G. Holcombe & DeEdgra W. Williams, 2008. "The Impact of Population Density on Municipal Government Expenditures," Public Finance Review, , vol. 36(3), pages 359-373, May.
    • Handle: RePEc:sae:pubfin:v:36:y:2008:i:3:p:359-373
    DOI: 10.1177/1091142107308302
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    7. Gallagher, Ryan M., 2021. "Income segregation's impact on local public expenditures: Evidence from municipalities and school districts, 1980–2010," Regional Science and Urban Economics, Elsevier, vol. 90(C).
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    11. Valtonen, Eero & Falkenbach, Heidi & Viitanen, Kauko, 2018. "Securing public objectives in large-scale urban development: Comparison of public and private land development," Land Use Policy, Elsevier, vol. 78(C), pages 481-492.
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    14. Boussauw, Kobe & Steenberghen, Thérèse & Vermander, Marijke & Fransen, Koos & Wittemans, Kelly, 2023. "Urban sprawl and home-delivered services: An exploratory analysis of spatial variations of cost and quality in Flanders (Belgium)," Land Use Policy, Elsevier, vol. 132(C).
    15. Bruno Emmanuel ONGO NKOA & Derick Ulrich YOUNDA, 2022. "L’urbanisation accroît-elle l’assiette fiscale locale dans un contexte de décentralisation en Afrique subsaharienne ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 55, pages 93-111.
    16. Eliakim Kakpo & Marie-Laure Breuillé & Camille Grivault & Julie Le Gallo, 2019. "Should French municipalities foster urban densification to reduce their expenditures?," Post-Print hal-02931806, HAL.
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