Government,Effectiveness, Performance,and Local Property Values

Abstract

We offer a practical measure of local government effectiveness in the provision of public services relating service expenditures to aggregate property value. Building on the work of Brueckner (1979 Brueckner, J. K. 1979. Property values, local public expenditure, and economic efficiency. Journal of Public Economics, 11: 223–246.  [Google Scholar], 1982 Brueckner, J. K. 1982. A test for allocative efficiency in the local public sector. Journal of Public Economics, 19: 311–331. [Crossref], [Web of Science ®] , [Google Scholar], 1983 Brueckner, J. K. 1983. Property value maximization and public sector efficiency. Journal of Urban Economics., 14: 1–16.  [Google Scholar]) and Henderson (1990, 1995) we present an aggregate property value maximization model where levels of local public services are capitalized into aggregate property values. Using data for Wisconsin municipalities we demonstrate that service expenditure levels, and simultaneously corresponding taxation levels, are suboptimal and should be increased. The aggregate property value maximization test suggests that local public services in Wisconsin are consistently under-provided. By monitoring local property values officials can objectively measure if public services are being provided in an optimal manner.     

The Size Efficiency of Rural Governments: The Case of Low-Volume Rural Roads

The deterioration of the supply of public infrastructure throughoutthe United States has been found to be accelerating. The reasonmost often cited for the increasing rates of deterioration isthe lack of available funding, or fiscal stress, present inmany local governments. A popular short-term solution to fiscalstress is to defer infrastructure repairs and/or replacementprograms. This is particularly true in rural areas where a decliningagricultural base and redirected federal policy have placedsignificant downward pressure on revenues. The search for along-term solution has renewed the debate about the optimalsize of local governments. The research reported here examinesthe issue of size efficiency in the production of low-volumerural roads in the Midwest. At issue is the ability of Midwesttownships to realize size economies. Overall, size inefficiencieswere identified which suggests that cost savings may be realizedfrom the reorganization of the production of low-volume roadservices.     

Categorical Municipal Expenditures with a Focus on the Flypaper Effect

Using data for Wisconsin cities and villages the effects of grants in aid from state government on 10 categories of municipal expenditures are examined. We build on the traditional grants in aid public finance literature by looking for evidence of the flypaper effect. By focusing on the Wisconsin state shared revenues program, a pure grant of considerable size for many Wisconsin municipalities, we offer a clean test of the flypaper effect. We find a positive flypaper effect on 8 of the 10 categorical expenditures. We also find the impact of unconditional grants on categorical expenditures is stronger on nonessential “luxury” goods (e.g., parks and recreation, culture, and educational services) than on essential “normal” municipal goods (e.g., police and fire protection).     

Women in Law Enforcement and Police Use of Deadly Force

We test the hypothesis that law enforcement agencies that have a larger share of female officers should experience lower rates of police use of deadly force. We use the Law Enforcement Management and Administrative Statistics 2013 survey of police and sheriff departments (N?=?1,983). We measure police-involved violence as the number of civilians killed by law enforcement officers from 2013 through 2015 as reported by the website Mapping Police Violence. Using a variety of empirical estimators to take into consideration the structure of the distribution of police-caused deaths, we find consistent results that a higher share of female officers is associated with a higher likelihood of police-caused deaths. These results are consistent with prior findings within the literature and implies that in order to “fit in” with their male counterparts female officers will use coercive tactics to the same extent.     

Managerial efficiency in local government: Implications on jurisdictional consolidation

Using data from Maine, estimates of size economies in the production of public education services are provided under the alternative assumptions of managerial efficiency and inefficiency. While size economies were identified under the traditional assumption of managerial efficiency, limited or no size economies were identified under the more general assumption of managerial inefficiency. These results question the validity of the traditional economies of size literature and the jurisdictional consolidation policy which follows from the traditional literature.     

A Model of Asymmetries in the Flypaper Effect

In this applied research study we examine the changing fiscalrelationship between state and local governments. Our researchquestion is simple: Do local governments treat state aid duringperiods of stability and instability in a systematic manner?Using data on Wisconsin's unconditional shared revenues programfrom 1990 to 2000, we find evidence of a flypaper effect andthat the relationship tends to be asymmetrical. The manner inwhich local governments treat intergovernmental aid is differentbetween periods of increases and decreases in aid. Specifically,using a model that allows for the identification of structureshifts we find evidence of fiscal replacement. In addition,we find that changes in aid impact types of spending differently.When aid is reduced, policymakers appear to be less inclinedto cut police and fire services than they are to cut servicessuch as parks and recreation.     

Alternative Methods of Service Delivery in Small and Rural Municipalities

Data from approximately 1,000 small, mostly rural municipalities in Illinois, New Hampshire, and Wisconsin address local choices on production and contracting arrangements for a wide range of services. The results suggest that the use of both for‐profit contractors and cooperative agreements with other governments correlate negatively with population size. Small municipalities are less likely to use competitive bidding processes, compare costs between production options, or report that privatization produces savings. Median income, rural geography, and ideology show statistically significant associations with contracting decisions. Respondents generally consider themselves “satisfied” with services provided by contract, although satisfaction levels are lower than those associated with self‐provision of the same services. Citizen satisfaction associated with services delivered by other governments is lower than those provided by private contractors, suggesting that no trade‐off in service quality is directly attributable to for‐profit contractors.