The Politics and Economics of the New City Debt

Elaine B. Sharp

American Political Science Review, 1986, vol. 80, issue 4, 1271-1288

Abstract: This paper contrasts nonguaranteed city debt with taxation and general obligation debt. Drawing upon Bureau of the Census, Advisory Commission on Intergovernmental Relations (ACIR) and Municipal Year Book data, the analysis shows that both per capita tax revenue and outstanding general obligation debt are best explained by background factors such as total population, functional scope, and region, while fiscal strain plays a secondary role. Political structures, in the shape of legal constraints on taxation and debt and of form of government, do not account for patterns of these traditional revenue sources. By contrast, nonguaranteed debt is best explained by a model in which fiscal strain has a paramount role, but with both legal constraints on taxing and regional differentiation contributing significantly to the explanation, at least for data collected prior to 1978. The findings suggest a two-tiered model of the revenue side of fiscal decision making, with historical accommodations to powerful economic and demographic factors dominating taxing and general obligation debt, while nonguaranteed debt serves as a flexible instrument of shorter-term strategy.

Date: 1986
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:apsrev:v:80:y:1986:i:04:p:1271-1288_18

Access Statistics for this article

More articles in American Political Science Review from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().