Norman Walzer

ECONOMIES OF SIZE AND SCOPE IN RURAL LOW-VOLUME ROADS

Evidence on cost savings from reorganizing township low-volume, rural-road systems into larger units is presented in the study of technical efficiencies in producing local government services. Data are from a sample of midwestern townships. Heterogeneity of surface types is accounted for by specifying a multiple output translog cost function. Examination of economies of size suggest that cost savings could be realized by reorganizing townships into larger units. The presence of economies of scope suggest that jurisdictions should not specialize in maintenance responsibilities due to the joint use of inputs. Copyright 1988 by MIT Press.

Factors affecting property tax reliance: Additional evidence

This paper contributes to the understanding of the variation in property tax reliance. Factors thought to underlie the relative use of property taxes in financing local public services are examined. Because of the importance of external debt and tax limits in determining both tax policies and local government organization, particular attention is paid to local government structure and the impact on tax composition. An index from the industrial organization literature is used to study the effects of local government fragmentation. The empirical results are consistent with expectations and indicate that external tax limits may increase property tax reliance by providing incentives to change the structure of local government.

Structural Shifts in the Treatment of Intergovernmental Aid: The Case of Rural Roads

The effects of structural shifts in the treatment of intergovernmental aid during the 1980s are tested using a sample of 1,929 rural counties with local road responsibilities. A dynamic model is used to test the hypothesis that local public officials treated intergovernmental aid differently after the Reagan/Bush policy of Fiscal Federalism was implemented. Empirical findings from the dynamic model are that federal aid was much more simulative at the end of the decade than in earlier years but the effects of state aid remained the same throughout the 1980s. These differences are attributed to a perception that federal aid is less certain and more transitory than permanent.

Involving Brownfields in Community Development: Preliminary Findings

The interest in brownfield redevelopment and reuse in cities has increased markedly as local officials have struggled with balanced growth and related issues. Previously, concerns about liability and lack of demand for property prevented local public and private investment in these areas. In recent years, however, local officials and private investors have recognized that many brownfield sites can be part of an overall reformation of the downtown or can offer viable alternatives to expensive development on the outskirts of the city. This article examines factors associated with perceived successes with brownfield redevelopment in a sample of small and medium size cities. Using a multivariate analysis, the authors identify city characteristics and conditions associated with levels of success. Involvement by financial institutions, taxes, importance of brownfields in city policy, demand for property, adequacy of infrastructure, and other considerations are especially important. The statistical results identify ways in which state agencies can work with community leaders to create an environment conducive to brownfield redevelopment projects that are more successful.

Internet Purchases by Rural Residents: Implications for Community Development

This article examines Internet purchasing patterns of rural residents by age, income, and sex to determine the characteristics of Internet purchasers and the types of stores in rural areas likely to face the most competition. The multivariate Logit analysis of 840 rural residents in the 2000 Illinois Rural Life Panel indicates that access to the Internet at home rather than work, recent changes in financial status, size of community in which people reside, age, and past experience in purchasing from mail order catalogs are important determinants of Internet purchases. The paper concludes with several implications for rural economic development including the notion that future Internet purchases may be those that already were purchasing outside the community through catalogs. Local stores can develop web pages but probably will still be disadvantaged unless they can focus on services, unique merchandise, or join cooperatives that carry a large inventory at lower prices. Main street stores may focus on customer services while accessing inventories maintained by the cooperative venture.

DOES LOCAL ECONOMIC DEVELOPMENT POLICY AFFECT COMMUNITY EMPLOYMENT GROWTH

Local officials in small communities seek economic development policies that promote employment growth. This study examines whether traditional policies, which focus on tax breaks and services to attract/retain manufacturing businesses, increased employment in Illinois communities. A regression model relates community employment growth to local policies and other locational variables. The analysis suggests that traditional policies are likely to have a small effect on employment growth. The findings also indicate employment is influenced more by public services than tax levels. The results suggest that local officials need to be concerned with the quality and efficiency of service delivery.

Returns from Redeveloping Brownfields: Preliminary Estimates

Redeveloping brownfields is achieving more recognition as a strategy in local community development projects, but relatively little is documented about the financial benefits obtained from public investments in these projects. This article examines 51 brownfield redevelopment projects in Illinois cities and estimates the financial returns to city and state investment. Dividing the projects into categories of industrial/commercial and recreational uses, the authors present innovative practices and factors that affect successful outcomes based on case studies with local officials and community developers. The results of the analyses suggest that cities often recover many times more than their initial investment and, at the same time, address other local issues.

THE STATUS AND FINANCING OF OFF-SYSTEM BRIDGES

The network of off-system bridges supporting the rural economy has been a concern for a long time. Federal Highway Administration data show that 31.4% of the bridges off the federal aid system qualify for replacement and/or rehabilitation funds, the worst category under the federal bridge program. Although there is some evidence that the quality of these bridges has marginally improved in recent years, the sheer number of deficient bridges in rural areas necessitates major expenses for rural local governments in the future. Study results suggest, however, that local highway officials expect to be able to spend far less than what they believe the system requires. The outcome is that part of the transportation backbone of the rural economy is at risk, and additional sources of revenue and/or alternative means for reinvesting in the bridge network are needed.