Central city fiscal conditions and MSA population distribution

Abstract

This article empirically examines the relationship between local fiscal conditions and the distribution of population within a metropolitan area. Specifically, it is concerned with how central city policies may affect shifts of population to the suburbs. This has strong policy implications especially for cities undertaking economic redevelopment programs, which may have spillover benefits or costs to their surrounding suburbs. This analysis utilizes a panel of county level Census of Population and Census of Governments data spanning 1960-90 to examine these issues. The results show that central city fiscal conditions are expected to affect the relative size of an MSA's city and suburban population.