Abstract

Chapman's fiscal impact model of local government1 shows conceptually how to relate optimum service level provision to optimum development level by drawing on Buchanan's economic theory of clubs.2 Chapman's purposes were to provide a conceptual justification for why city planners and finance officers must talk to one another and to argue theoretically for the intervention of local government into the land use market under certain conditions.3 His basic conclusion is that communities should apply marginal decision making based on fiscal impact analysis. By marginal decision making, Chapman implicitly means fiscal, environmental, and socioeconomic stabilization around the existing community status quo. This article is motivated by two observations about Chapman's fiscal impact model.

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