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Metropolitan fiscal structure and migration.

W F Fox, Herzog Hw, A M Schlottman

    Journal of Regional Science
    |January 1, 1989
    PubMed
    Summary
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    Individuals consider local fiscal policies when deciding where to live. Migration patterns are significantly influenced by metropolitan revenue and expenditure structures, especially decisions to leave an area.

    Area of Science:

    • Economics
    • Urban Studies
    • Public Finance

    Background:

    • Individuals' location decisions are influenced by various factors, including economic and fiscal conditions.
    • Metropolitan areas exhibit diverse fiscal structures, impacting residents' choices.

    Purpose of the Study:

    • To investigate the extent to which individuals 'vote with their feet' in response to metropolitan fiscal structures.
    • To analyze the impact of local and state fiscal policies on migration decisions.

    Main Methods:

    • Examined migration impacts of expenditures and revenues at the metropolitan level.
    • Analyzed the effects of expenditure distribution by type and revenue sources on migration.
    • Considered three dimensions of migration: relocating within, departing from, and entering a metropolitan area.
    Keywords:
    AmericasBehaviorDecision MakingDemographic FactorsDeveloped CountriesEconomic FactorsExpendituresFinancial ActivitiesGovernmentMathematical ModelMigration--determinantsModels, TheoreticalNorth AmericaNorthern AmericaPolitical FactorsPopulationPopulation CharacteristicsPopulation DynamicsResearch MethodologyTaxationUnited StatesUrban Population

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    Main Results:

    • Metropolitan fiscal structure significantly influences migration decisions.
    • Expenditure and revenue policies play a key role in individuals' decisions to relocate or move.
    • The decision to depart a metropolitan area is particularly sensitive to its fiscal structure.

    Conclusions:

    • Fiscal policies are a critical determinant of residential mobility within and between metropolitan areas.
    • Understanding fiscal impacts is essential for urban planning and policy-making.
    • Individuals actively respond to fiscal incentives and disincentives when choosing where to reside.