Compensating Changes to the Property Tax Levy? An Empirical Test of the Residual Rule

2017 ◽  
Vol 46 (6) ◽  
pp. 949-973 ◽  
Author(s):  
Spencer T. Brien
Keyword(s):  
Local Governments ◽  
Formal Model ◽  
Empirical Test ◽  
Property Tax ◽  
Tax Administration ◽  
County Governments ◽  
Active Approach ◽  
The Difference ◽  
Using Data ◽  
The Cost

The residual view of the property tax assumes that local governments set their levies equal to the difference between budgeted expenditures and expected receipts from other revenues. This approach allows them to adjust the levy to achieve greater overall revenue stability potentially at the cost of tax predictability. This article presents a formal model of the residual rule and uses it to test whether this active approach to property tax administration describes observed fiscal behavior. This test is conducted using data from county governments in Georgia over a fifteen-year period. The results support the validity of the residual rule over an alternative model of passive tax administration.

Incentives for Efficiency: User Charges and Municipal Spending

1999 ◽  
Vol 17 (1) ◽  
pp. 19-34 ◽  
Author(s):  
Edward J. Bierhanzl
Keyword(s):  
Local Governments ◽  
Empirical Test ◽  
Ceteris Paribus ◽  
User Charge ◽  
The Public ◽  
User Charges ◽  
One Step ◽  
The Cost ◽  
Cost Effect ◽  
Quantity Effect

Abstract User charges have been an increasingly important source of revenue tor local governments. Furthermore, it has been suggested in the public finance literature that user charge finance can increase the efficiency of local government service provision, with the evidence being a reduction of expenditures, ceteris paribus. This paper goes one step further, using an empirical test to distinguishing die quantity effect from the cost effect. An analysis of local sewer service demonstrates that greater reliance on user charge finance does not have a significant impact on the quantity of service provided, but does lead to reduced cost of service. The argument for user charges as an efficiency-enhancing mechanism is thereby strengthened.

scholarly journals Optimal maintenance scheduling for local public purpose buildings

2016 ◽  
Vol 34 (2) ◽  
pp. 120-135 ◽  
Author(s):  
Arnt O. Hopland ◽  
Sturla F. Kvamsdal
Keyword(s):  
Local Governments ◽  
Formal Model ◽  
Maintenance Scheduling ◽  
Trade Off ◽  
Content Type ◽  
Maintenance Schedule ◽  
Public Purpose ◽  
Trade Offs ◽  
Optimal Maintenance ◽  
The Cost

Purpose – The purpose of this paper is to set up and analyze a formal model for maintenance scheduling for local government purpose buildings. Design/methodology/approach – The authors formulate the maintenance scheduling decision as a dynamic optimization problem, subject to an accelerating decay. This approach offers a formal, yet intuitive, weighting of an important trade-off when deciding a maintenance schedule. Findings – The optimal maintenance schedule reflects a trade-off between the interest rate and the rate at which the decay accelerates. The prior reflects the alternative cost, since the money spent on maintenance could be saved and earn interests, while the latter reflects the cost of postponing maintenance. Importantly, it turns out that it is sub-optimal to have a cyclical maintenance schedule where the building is allowed to decay and then be intensively maintained before decaying again. Rather, local governments should focus the maintenance either early in the building’s life-span and eventually let it decay toward replacement/abandonment or first let it decay to a target level and then keep it there until replacement/abandonment. Which of the two is optimal depends on the trade-off between the alternative cost and the cost of postponing maintenance. Originality/value – The paper provides a first formal inquiry into important trade-offs that are important for maintenance scheduling of local public purpose buildings.

scholarly journals Investing During the Recession: How County Governments Utilized Idle Cash

2020 ◽  
Vol 6 (1) ◽  
pp. 24
Author(s):  
Steve Modlin
Keyword(s):  
South Carolina ◽  
Federal Government ◽  
Local Governments ◽  
Regression Models ◽  
Property Tax ◽  
Educational Background ◽  
Government Investment ◽  
County Governments ◽  
Money Market Funds ◽  
North And South

This article examines the investing practices of North and South Carolina county governments during the recession. Unlike many local governments across the country, county governments in both states reported that there were indeed funds available for investing at any given time. Initial findings indicate that investors were concerned for safety and liquidity as the local government investment pool (LGIP) for both states along with certificates of deposit (CDs) were the preferred instruments. Regression models of the four most widely used instruments were analyzed. Findings indicate lower property tax collections and an external primary bank of business were associated with higher LGIP investment; whereas, a significant relationship was also found between those with less experience and official educational background other than accounting and an increase in money market funds and federal government securities.

scholarly journals Efficiency Analysis of Public Library Services Based on Establishing Entity and Outsourcing

2020 ◽  
Vol 12 (21) ◽  
pp. 9205
Author(s):  
Changhee Kim ◽  
Hyunjung Kim ◽  
Kanghwa Choi
Keyword(s):  
Local Governments ◽  
Central Government ◽  
Public Libraries ◽  
Public Library ◽  
Library Services ◽  
Sustainable Performance ◽  
The Difference ◽  
Excess Quantity ◽  
Using Data

This study investigates the difference in service efficiency based on establishing entity and outsourcing in 847 public libraries in Korea. The public libraries were categorized into three types based on establishing entity and outsourcing, where Type 1 libraries are those established and directly managed by the Office of Education under the central government, Type 2 libraries are established and directly managed by local governments, and Type 3 libraries are established by local governments and their operations are outsourced. Each library type was analyzed and compared using data envelopment analysis (DEA), and results found that public libraries established by local governments are more efficient than those established by the central government, while outsourcing operations improved the efficiency of public libraries. Further analysis of the projection point and excess quantity of input showed that the main cause of inefficiency for Type 1 libraries is the library area, and for Types 2 and 3, the number of periodicals. This study provides guidelines for the sustainable performance of public library services based on the factors of foundation and operational patterns.

scholarly journals Does Home Rule Overrule the State`s Role? An Analysis of Property Tax Administration in New York State

2006 ◽  
Vol 21 (1) ◽  
pp. 43-67
Author(s):  
Tae Ho Eom
Keyword(s):  
New York ◽  
Local Governments ◽  
New York State ◽  
Property Tax ◽  
The State ◽  
Tax Administration ◽  
Home Rule ◽  
Deep Roots ◽  
Tax System ◽  
York State

This essay analyzes the property tax system in New York State. Based on historical and comparative analyses of three critical factors in property tax administration-assessment standards, revaluation, and assessing units-this study reveals that the current property tax administration structure has deep roots in the "home rule" tradition in New York State, making it hard to achieve intradistrict equity in property tax burden for some assessing units. The study concludes that the state's lack of active role undermines public faith in the property tax system and in local governments. The state should not be overruled by the local government politics based on home rule.

scholarly journals The Choice of Local Governments under Two Principals: The Case of Tax Hike Policy of South Korea Noncompliance of Local Governments to Tax Hike Policy

2008 ◽  
Vol 23 (1) ◽  
pp. 181-207
Author(s):  
Kim Dae Jin
Keyword(s):  
Institutional Change ◽  
Local Governments ◽  
Central Government ◽  
Formal Model ◽  
Property Tax ◽  
Short Term ◽  
Seoul Metropolitan Area ◽  
Form Model ◽  
Long Term Prediction ◽  
Tax Cuts

The Korean central government introduced a package of tax hikes on real estate in order to achieve tax levy equity. This remarkable tax innovation, however, resulted in conflicts between the cnetral government, residents, and local governments, which were followed by area-wide tax competitions among the local governments in the Seoul Metropolitan Area (SMA). This study analyzes the property tax resistance of the SMA using the form model approach to the principal and agent. It is assumed in the study that residents, local governments, and the central government have a divided principal-agent relationship. With several descriptive analyses and some data for the case, however, the theoretical model gives a logical explanation for the behaviors of residents, local governments, and the central government in the short-term tax resistance. That is, under short-term conditions, local governments tend to respond to residents' request for tax cuts, dependent upon their fiscal independence and neighboring local jurisdictions' decision-making on property tax cuts. The pattern of the property tax cuts over time implies that local government's elected officials may be very sensitive to their re-election. Further, it provides long-term prediction for the behavior of the three actors, dependent upon institutional change. When the information on institutional change is perfect, or the uncertainty is removed in the institutional change, they ultimately reaach the Nash equilibrium. Finally, it is fair to say that the formal model contributes to this study by complementing the lack of empirical data/precedent literatures, and clarifies the causality between the factors of interest.

scholarly journals The impact of the oil palm plantation area on the community economy in East Kutai Regency, East

2020 ◽  
Vol 9 (4) ◽  
pp. 130-137
Author(s):  
Zulkarnain Zulkarnain
Keyword(s):  
Data Analysis ◽  
Sampling Method ◽  
Community Economy ◽  
Plantation Development ◽  
Regional Influence ◽  
The Difference ◽  
Using Data ◽  
The Cost ◽  
The Impact ◽  
Data Analysis Methods

This article is about how the impact of change and the extent of existing activities contribute to the surrounding community. The development of large private plantations in the East Kutai Regency has also been inseparable from problems, especially in the management of plasma plantations carried out by large plantation companies. Issues that arise include the difference in productivity between nucleus and plasma plantations, the low acceptance of plasma farmers so that it is considered not to improve the welfare of the community. The purpose of this study was to determine the impact of large private plantations on community welfare, evaluating the implementation of plantation development activities in the East Kutai Regency. The sampling method is done by purposed sampling using data analysis methods, the analysis of the cost of the benefits of the area, the analysis of the level of welfare, and analysis of regional influence. With the results of the study as follows: the cost of benefits is positive; the multiplier value is 2,614 and the value of NTM is 0.37.

The Effect of “Federal -Aid Swap” Programs and Davis-Bacon Prevailing Wages on Highway Construction Costs and Contractor Composition: Evidence From Iowa

2021 ◽  
pp. 0160449X2110494
Author(s):  
Frank P. Manzo
Keyword(s):  
Local Governments ◽  
Construction Projects ◽  
Highway Construction ◽  
Federal Aid ◽  
Construction Costs ◽  
Highway Projects ◽  
Percentage Points ◽  
Using Data ◽  
Project Location ◽  
The Cost

“Federal-aid swap” programs allow states and local governments to bypass federal Davis-Bacon prevailing wages and Disadvantaged Business Enterprise (DBE) goals by exchanging federal funds that have been allocated to highway projects with state funds. The Iowa Department of Transportation approved a federal-aid swap program in February 2018. Using data on more than 1,200 highway construction projects in Iowa from 2016 to 2020, I find that the cost of projects in the federal-aid swap program are not statistically different from those that were not swapped, after accounting for project size and complexity, project type, and project location. Regression results indicate that Davis-Bacon prevailing wages and DBE goals have no effect on total construction costs. However, the federal-aid swap program is statistically associated with a decrease in the likelihoods that a project is covered by the Davis-Bacon Act by 10 percentage points and DBE goals by 4 percentage points. Because the payment of Davis-Bacon prevailing wages is statistically associated with an 8 percentage-point decrease in the chances that a highway project is awarded to an out-of-state contractor, the federal-aid swap program may have increased the market share of out-of-state contractors at the expense of Iowa-based contractors.

The Cost of System Congestion: Evidence from the Healthcare Sector

2000 ◽  
Vol 12 (1) ◽  
pp. 97-114 ◽  
Author(s):  
Ramji Balakrishnan ◽  
Naomi S. Soderstrom
Keyword(s):  
At Risk ◽  
The State ◽  
Healthcare Sector ◽  
Full Sample ◽  
Physician Incentives ◽  
Patient Admissions ◽  
Logistic Regressions ◽  
The Difference ◽  
Using Data ◽  
The Cost

We investigate the cost of system congestion using data from 225,473 maternity admissions at 30 hospitals in the state of Washington. We identify congested days using the distribution of patient admissions for each hospital-year combination and use the rate of Caesarian sections (C-sections) as the proxy for the cost of congestion. We use two separate logistic regressions to investigate the relation between congestion and the decision to operate. The first regression includes data from the full sample of patients. Contrary to expectations, we find that congestion does not increase C-section rates. We estimate the second regression using data only from those patients classified as being at risk for a C-section and find that congestion does lead to increased C-section rates. The difference obtains because our full sample analyses do not control for physician incentives to classify patients as being “at risk,” and whether the patient is “at risk” is included as a control in the regression. The nature of our findings also suggests that the cost of congestion manifests itself in subtle ways, underscoring the importance of understanding the specifics of the process when we examine issues such as the cost of congestion.

Urban land speculation: model development

2020 ◽  
Vol 38 (5) ◽  
pp. 613-626
Author(s):  
Bedane S. Gemeda ◽  
Birhanu G. Abebe ◽  
Giuseppe T. Cirella
Keyword(s):  
Local Governments ◽  
Model Development ◽  
Property Tax ◽  
Dynamics Modeling ◽  
Research Strategies ◽  
Content Type ◽  
Local Revenue ◽  
Administrative Area ◽  
The Difference

PurposeThe aim of the research is to examine the role of property tax in land and building administration and to develop a dynamic model. The paper investigates the extent to which local governments take advantage of property tax in generating revenue and encouraging certain life cycle assessment-oriented land and building speculation patterns in Shashemene, Ethiopia.Design/methodology/approachThe study was conducted using case study and survey research strategies. Shashemene's administrative area (i.e. specific to four peri-urban villages) was purposively selected as the case study area. A combination of different data collection instruments was employed: questionnaires and field observation. Moreover, an extensive survey of owners of undeveloped land and building, throughout the study area, was conducted. Multiple regression analysis was applied to the analyzed data as well as the use of dynamic modeling of land and building via qualitative and numerical analysis of property.FindingsResults indicate that speculators will hold land and building for a marginal period only if the difference between present net rates of return exceeds the difference between discounted expected percent return.Practical implicationsThis paper provides a simple model to recognize the optimum length of time to hold a parcel of land and building from the market by land speculators.Originality/valueThe introduction and potential implementation of dynamics modeling to the local government calls for controlling speculation that has resulted in local revenue enhancement.

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