Explaining Local Growth-Management Policies: The Role of Public Goods

Abstract

Problem statement: Local jurisdictions such as cities and counties enact a wide variety of growth-management regulations, such as zoning ordinances and growth-promoting incentives. Approach: Use a theory of local public goods to identify the conditions under which jurisdictions are most likely to implement growth-management regulations. Predictions of the theory regarding variation in pro-growth measures across jurisdictions were tested using data on California cities. Results: Communities whose current expenditures on public amenities are high typically have more extensive growth-promoting policies, while communities that already have substantial public infrastructure in place are less likely to implement effective pro-growth measures. Conclusion: These findings suggest that changes in stocks and flows of public goods can be used as predictors of the incidence of growth controls.