Political Science 3363F/G Lecture Notes - Lecture 6: Sam Groth, Rent Regulation

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Four-point compass, centralized (1) vs devolved (2) and fragmented vs consolidated centralized fragmented consolidated devolved. Uk, germany centralized but neither truly consolidated or fragmented. Local government can only control land, as nation state can control capital and who enters country. Subordinate to national government system: basic interest, when constrained as such, is in promotion of economic growth since it brings in labour and capital. Local governments can only really manipulate the land they have and tax regime to attract growth. All local governments are in competition for every job and dollar. Land use to create growth: building infrastructure, zoning / land use regulation. Lower taxes: keep things cheap and land available is all municipal governments can do. 3 kinds of expenditures that municipal governments can control: developmental (land use) Only thing municipalities have any say over to engage in: redistributive (social policies) Would make municipalities more expensive and less competitive: allocational (some things that everyone benefits from garbage collection, parks)

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