No CrossRef data available.
Article contents
Alternative Methods for Distributing State Aid to Local Governments in New York
Published online by Cambridge University Press: 10 May 2017
Abstract
This paper simulates alternative distributions of general purpose state aid to local governments under different combinations of criteria: tax capacity, effort, and revenue needs. Revenue needs are based on Tobit estimates of the costs of providing average levels of 16 categories of services. Segmenting the sample into high and low population jurisdictions provided a more realistic set of cost estimates. Available revenues or capacity are determined by multiplying each jurisdiction's tax bases by standard tax rates. A Need-Capacity gap, the difference between needed revenues and available revenues, is used as a needs-based distribution strategy for general purpose aid. Finally an effort gap, based on above average tax efforts was added to the Need-Capacity gap to define a Need-Capacity-Effort strategy.
- Type
- Articles
- Information
- Northeastern Journal of Agricultural and Resource Economics , Volume 16 , Issue 2 , October 1987 , pp. 153 - 164
- Copyright
- Copyright © 1987 Northeastern Agricultural and Resource Economics Association
Footnotes
The research reported here was carried out under contract with the New York State Legislative Commission on State-Local Relations.
References
Bradbury, Katherine L., Ladd, Helen F., Perrault, Mark, Reshovsky, Andrew and Yinger, John. “State Aid to Offset Fiscal Disparities Across Communities,” National Tax Journal 37(2):151–169, June, 1984.Google Scholar
Hattery, Michael R., Ranney, Christine K., Day, Lee M., Alice, David J. and Wilcox, Duane E. “Services Provided by Local Governments in New York State,” A. E. Res. 86-29, Department of Agricultural Economics, Cornell University, Ithaca, New York, December, 1986.Google Scholar
Heckman, James. “Sample Selection Bias as a Specification Error.” Econometrica. 74 (January 1979):153–161.Google Scholar
New York State Legislative Commission on State-Local Relations. New York's Revenue Sharing at the Crossroads. Albany, New York, March, 1985.Google Scholar
New York State Department of Transportation. 1983 Highway Mileage Report for New York State. NYSDOT, Planning Division, Data Services Bureau, Transportation Statistics and Analysis Section, Albany, New York, May, 1984.Google Scholar
Stinson, Thomas F. and Lubov, Andrea, “Segmented Regression, Threshold Effects, and Police Expenditures in Small Cities,” American Journal of Agricultural Economics, 65(4):738–746, November, 1982.Google Scholar
U.S. Advisory Commission on Intergovernment Relations. Tax Capacity of the Fifty States: Methodology and Estimates, M-134. Washington, D.C.: U.S. Government Printing Office, March, 1982.Google Scholar