If you build it, will they come?: fiscal federalism, local provision of public tourist amenities, and the Vision Iowa fundEconomics Working Papers (2002–2016)
Document TypeWorking Paper
Working Paper NumberWP #11018, October 2011
AbstractThe philosophy of fiscal federalism presumes that local communities will under- or over-provide public amenities in the presence of externalities. We test this hypothesis using data from Vision Iowa, a state program which provided partial funding to communities to build tourist attractions. We find a 1% increase in investment increased county taxable retail sales 0.9%. The State's return, from program-induced sales tax revenue, averaged 9.2% annually. Local communities' returns averaged 0.9% and we find a significant increase in surrounding areas' sales. This suggests that without state subsidies, communities would undersupply public amenities aimed at attracting visitors.
Citation InformationDeepak Premkumar, Austin Quackenbush, Georgeanne M. Artz and Peter Orazem. "If you build it, will they come?: fiscal federalism, local provision of public tourist amenities, and the Vision Iowa fund" (2011)
Available at: http://works.bepress.com/georgeanne-artz/7/