Internal migration and fiscal capacity of local authorities: A case study of the Greater Tel Aviv Metropolitan Area, 1985-97

Asher Vaturi, Boris A. Portnov, Moshe Schwartz

Research output: Contribution to journalArticlepeer-review

Abstract

Using the Greater Tel Aviv Metropolitan Area as a case study, this paper studies the interaction between intrametropolitan migration and the fiscal capacity of local authorities. The analysis concludes that municipalities with high resident out-migration generate higher per capita incomes than migrant-recipient municipalities. This paradoxical situation may be due to the fact that non-residential land uses yield higher local taxes than residential ones.

Original languageEnglish
Pages (from-to)61-85
Number of pages25
JournalSpace and Polity
Volume8
Issue number1
DOIs
StatePublished - Apr 2004

Bibliographical note

Funding Information:
In this case, out-migration has caused central municipalities to cut expenditures, thus lowering service levels, and to raise taxes on remaining residents and businesses (Ben-Ilia, 2001).1 ‘Equalisation’ grants from the central government have also been sought, but the financial support provided by the central government has declined sharply (Wildasin, 1991; Hecht and Konin, 2001). Central-city residents and businesses are burdened with additional taxes spurring further out-migration, undermining the metropolitan tax-base and generating a vicious circle: as the central city’s population shrinks, services decline while tax burdens increase (Bailey, 1999).

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Political Science and International Relations

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