The Fiscal Impact of Urban Growth on Municipalities

Abstract

In this paper, panel regression analysis is used to examine the fiscal impact of urban growth on per-capita or per-household expenditures of providing municipal services in the province of Ontario, Canada. Three variables are used to measure growth: households, population and assessment. Using a panel data set for 68 municipalities, we find that for the most part, urban growth has no effect on per-capita or per-household expenditures. The policy implications of these results are discussed.