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THE EFFECTS OF TAXES, EXPENDITURES, AND PUBLIC INFRASTRUCTURE ON METROPOLITAN AREA EMPLOYMENT *
Author(s) -
Dalenberg Douglas R.,
Partridge Mark D.
Publication year - 1995
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1995.tb01296.x
Subject(s) - metropolitan area , budget constraint , government (linguistics) , constraint (computer aided design) , economics , public expenditure , public finance , public infrastructure , government expenditure , labour economics , public spending , business , public economics , demographic economics , macroeconomics , geography , political science , microeconomics , mechanical engineering , linguistics , philosophy , archaeology , law , engineering , politics
. Data for 28 metropolitan areas over a 15‐year period are used to determine the impacts of government spending, taxes, and public infrastructure on total employment and disaggregated employment. After carefully controlling for the government budget constraint we find that taxes are negatively related to total employment and education spending is positively related to total employment. Nevertheless, we find that it is difficult for metropolitan areas to influence the composition of their employment with government tax and expenditure policies. Moreover, at current levels of public infrastructure, marginal changes in infrastructure have no strong effect on employment.