Abstract

In response to the fiscal crisis of cities (spurred by continued suburbanization, central city decay, the national tax revolt and the proposed federal revenue-sharing cuts) private firms have developed and marketed mathematical models for exploring the budgetary impacts of changes in zoning, housing, population, transportation and taxing decision. Typically, these models are large-scale comprehensive simulation packages or services which are tailored for particular cities for exploring fiscal impacts. Under ideal conditions it is believed that the use of this operations research approach will improve the urban decision-making process. Factors relevant to successful application are explored. Contractual forms (including funding sources) are discussed in conjunction with the purpose and location of the model within the local government. The fiscal impact model can improve the decision-making process only if it is judiciously applied.

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