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If you build it, will they come?: fiscal federalism, local provision of public tourist amenities, and the Vision Iowa fund
Economics Working Papers (2002–2016)
  • Deepak Premkumar, Iowa State University
  • Austin Quackenbush, Iowa State University
  • Georgeanne M. Artz, Iowa State University
  • Peter Orazem, Iowa State University
Document Type
Working Paper
Publication Date
10-9-2011
Working Paper Number
WP #11018, October 2011
Abstract
The 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.
Disciplines
File Format
application/pdf
Length
33 pages
Citation Information
Deepak 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/