University of Groningen
The Economic Impact of Local Government
Jong, Dylan
DOI:
10.33612/diss.155033813
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Publication date: 2021
Link to publication in University of Groningen/UMCG research database
Citation for published version (APA):
Jong, D. (2021). The Economic Impact of Local Government. University of Groningen. https://doi.org/10.33612/diss.155033813
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PROPOSITIONS RELATED TO THE THESIS
The Economic Impact of
Local Government
Dylan M.O. Jong
1. Local governments have the biggest positive local economic impact when they have high local autonomy, low horizontal fragmentation and high quality of government.
2. The degree of local autonomy and horizontal fragmentation determines the effectiveness of local governments, whereas the quality of government captures the direction of the economic impact (positive or negative).
3. Local governments may enhance local economic growth through their local public fiscal composition.
4. The extent to which taxes and other (local) public revenues are distortionary depends on the productivity of the expenditures these additional funds are used for, and vice versa.
5. Relatively productive local public expenditure components are: public welfare, highways, utilities, and commercial activities, whereas expenditures on public safety, health, parks and recreation, public buildings and interest on general debt are relatively unproductive.
6. The local public expenditure composition may affect the attractiveness of cities to consumer-voters.
7. Relatively attractive local public expenditure components are: air transit, parking, housing and community development, capital outlay on higher education and highways, and current operations expenditures on parks and recreation.
8. County governments and school districts benefit from the fracking-boom through increased property tax revenues.
9. County governments mostly use the additional revenues from the fracking-boom to cope with the negative externalities associated with the fracking-boom.
10. School districts use the additional revenues from the fracking-boom to invest in elementary and secondary education and increase its cash holdings.
