Fiscal Decentralization and Land Policies (Book)

Editor(s): Ingram, Gregory K., and Yu-Hung Hong
Publication Date: May 2008

$30.00; 432 pages; Inventory ID 178-1; English; Paperback; ISBN 978-1-55844-178-1


Chapter 1: The Nexus of Fiscal Decentralization	402 KB

Abstract

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The study of fiscal decentralization has important policy implications for urban growth management, environmental conservation, and property taxation. First, fiscal decentralization gives local governments powers to set local taxes and make local expenditures. Second, in many countries local governments also have powers to regulate land uses within the general guidelines set by higher authorities. These two powers interact so that municipalities often make land use decisions while considering their fiscal effects. Hence, an understanding of the degree to which local and provincial governments can exercise power, make decisions about their revenues and expenditures, and are held accountable for outcomes is crucial for land policy research and education.

In June 2007 Gregory K. Ingram and Yu-Hung Hong of the Lincoln Institute organized the second in a series of land policy conferences to address international trends and issues. The goals of this conference were to review decentralization experiences in Organisation for Economic Co-operation and Development (OECD) countries and developing nations and to explore areas of consensus and disagreement among scholars and analysts on the opportunities and risks of decentralization.

Three key themes emerged from the conference and are presented in this volume. The first theme concerns the extent and effectiveness of local service provision under decentralization. The second focuses on the connections between decentralization and local policies, appraising how decentralization is related to jurisdiction size, public school finance, local environmental policy, and urban economic development strategy. The third theme addresses the effects of intergovernmental transfers on other issues such as local fiscal prudence and the association between decentralization and income distribution.

Contents

Introduction

1. The Nexus of Fiscal Decentralization and Land Policy, Gregory K. Ingram and Yu-Hung Hong

Achieving Decentralization Objectives

2. Opportunities and Risks of Fiscal Decentralization: A Developing Country Perspective, Roy Bahl

3. Local Revenues Under Fiscal Decentralization in Developing Countries: Linking Policy Reform, Governance, and Capacity, Paul Smoke
Commentary, Robert D. Ebel

4. Local Service Provision in Selected OECD Countries: Do Decentralized Operations Work Better?, Ehtisham Ahmad, Giorgio Brosio, and Vito Tanzi
Commentary, Paul Bernd Spahn

Decentralization, Local Governance, and Land Policy

5. Political Structure and Exclusionary Zoning: Are Small Suburbs the Big Problem?, William A. Fischel
Commentary, Lee Anne Fennell

6. School Finance Reforms, Property Tax Limitation Measures, and the Distributions of Expenditures and Class Sizes, Daniel P. McMillen and Larry D. Singell Jr.
Commentary, Dennis N. Epple

7. Decentralization and Environmental Decision Making, Shelby Gerking
Commentary, Lawrence Susskind

8. A Cross-Country Comparison of Decentralization and Environmental Protection, Hilary Sigman
Commentary, Maureen L. Cropper

9. Interjurisdictional Competition Under U.S. Fiscal Federalism, Sally Wallace
Commentary, Jeffrey S. Zax

Emerging Challenges and Opportunities

10. Local Government Finances: The Link Between Intergovernmental Transfers and Net Worth, Luiz R. De Mello
Commentary, Ronald C. Fisher

11. Fiscal Decentralization and Income Distribution, Jorge Martinez-Vazquez and Cristian Sepulveda
Commentary, Christine P. W. Wong

12. Public and Private School Competition and U.S. Fiscal Federalism, Thomas J. Nechyba
Commentary, Helen F. Ladd

13. Community Associations: Decentralizing Local Government Privately, Robert H. Nelson
Commentary, Robert W. Helsley

14. Increasing the Effectiveness of Public Service Delivery: A Tournament Approach, Clifford F. Zinnes
Commentary, José Roberto R. Afonso and Sérgio Guimarães

About the Editors

Gregory K. Ingram is president and CEO of the Lincoln Institute of Land Policy and cochair of the Department of International Studies. He has published in the areas of housing and land markets, urban economics, infrastructure, environment, and development. Contact: gkingram@lincolninst.edu

Yu-Hung Hong, fellow at the Lincoln Institute and visiting assistant professor at Massachusetts Institute of Technology, is engaged in research and teaching on utilizing land as a public revenue source. Contact: hong@lincolninst.edu