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Why Are We Lagging Behind? An Empirical Analysis of Municipal Capital Spending in the United States
Author(s) -
Wang Wen,
Wu Yonghong
Publication year - 2018
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/pbaf.12193
Subject(s) - capital expenditure , lagging , receipt , investment (military) , capital (architecture) , economics , debt , revenue , public economics , empirical evidence , balance (ability) , empirical research , business , finance , accounting , political science , geography , medicine , philosophy , archaeology , pathology , epistemology , politics , law , physical medicine and rehabilitation
This research examines the determinants of municipal capital investment in the United States. Using a data set of 100 large cities in five select years over 1992–2012, the regression analysis finds that local tax and expenditure limitations and legal debt limitations restrict municipal capital spending. The receipt of intergovernmental revenue, governmental fund balance, and some demographic factors have significant effects on the capital outlays. The empirical findings shed light on how to address the lag of critical investment in infrastructure at the municipal level in the United States.