Transportation and Infrastructure, Retail Clustering, and Local Public Finance: Evidence from Wal-Mart's Expansion
Michael Hicks
MPRA Paper from University Library of Munich, Germany
Abstract:
The author examines the role highway infrastructure and local property tax rate variability play in retail agglomeration in Indiana from 1988 through 2003. To account for data errors and the potential endogeneity of taxes and infrastructure on retail agglomeration, he introduces a unique identification strategy that exploits the entrance timing and location of Wal-Mart stores in Indiana. Using a time-series cross-sectional model of Indiana’s 92 counties from 1988 through 2003, he estimates the impact highway infrastructure, property taxes, and big-box competition have in creating regional agglomerations. Among two separate specifications and a full and rural-only set of the data, the author finds considerable agreement in the results. In the full sample, he finds no relationship between property tax rates or highway infrastructure and retail agglomeration. Within the non-metropolitan statistical area (MSA) counties, this relationship is very modest, though it possesses considerable statistical certainty. Highway impacts within the non-MSA counties are significant and positively related to retail agglomeration, with the presence of highways explaining about 10 percent of total agglomeration variability. (JEL R11, R53)
Keywords: Infrastructure; endogeneity; taxation; Wal-Mart (search for similar items in EconPapers)
JEL-codes: R11 R52 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-geo and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (3)
Published in Regional Economic Development 2.2(2006): pp. 100-114
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/52/1/MPRA_paper_52.pdf original version (application/pdf)
Related works:
Journal Article: Transportation and infrastructure, retail clustering, and local public finance: evidence from Wal-Mart's expansion (2006)
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:pra:mprapa:52
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).