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- W9664508 abstract "Financial diculties of U.S. cities have recently become a major issue of concern. However, there is little agreement on why certain cities experience crises while others do not. Two arguments are put forward: Cities suer from (1) structural problems like high immigration, congestion etc. (2) non-structural political problems like the weakness of the mayor, union-power etc. We present a common pool resource framework of municipal goods and derive estimation equations. It is shown that spending and debt levels increase in the degree of the common pool problem. The common pool problem is operationalized by socio-demographic variables, which capture structural problems. The estimation is based on 900 U.S. cities in 1985, 1991 and 1999. Structural factors explain most of the variation of spending and debt levels. Furthermore, coecients are stable over time. However, excessively high debt burdens, which are taken as indicators of potential crisis, and high spending levels are regression outliers and not explained by structural factors. We conclude that fiscal crises are not predicted by socio-demographic, structural factors. JEL: H74, H72, E62, P1, R0" @default.
- W9664508 created "2016-06-24" @default.
- W9664508 creator A5022738907 @default.
- W9664508 date "2004-09-17" @default.
- W9664508 modified "2023-09-27" @default.
- W9664508 title "Fiscal Crises in U.S. Cities: Structural and Non-structural Causes" @default.
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