Progress 10/01/00 to 09/30/05
Outputs
The fiscal impact of development is the effect of new investment, new construction, new employment, new population, new school enrollment and other changes on a government's budget. If development generates new revenues that exceed new costs, the fiscal impact is said to be positive. The local government can more than meet new demands for services, and (perhaps) provide a tax reduction for existing taxpayers. If a development generates new revenues that fall short of new costs, however, the fiscal impact is negative. The local government must raise taxes to meet new service demands, and (perhaps) reduce the quantity or quality of existing services. The literature on fiscal impact has been investigated, focusing especially on the effects of development concentration and government capacity. I managed to find research on concentration and capacity that had not been incorporated into my Indiana fiscal impact models before. I constructed a prototype model intended for use
by local decision makers. It includes data on the budgets, appropriations, revenues, tax rates and population characteristics of 92 counties, 293 school corporations and 560 cities and towns. A model that would require local decision-makers to know local government appropriations or tax rates would be little used, because this information is often hard to acquire. In our model, users will identify the local government in which they are interested, and the model will use the appropriate budget and tax data. The data were entered into a Excel spreadsheet model so that users can identify a particular local government, and the model would apply that governments budget and tax data to the fiscal impact analysis. The model asks the user for a few details about the development. The model then applies fiscal impact methods developed from a review of the literature to the budget and tax data, and the development characteristics. I have also developed a model of the Indiana state budget. The
model for each fiscal year starts with state balances, adds revenues, subtracts expenditures, makes adjustments (payment delays, transfers from other funds), and ends with the end of year balances. I have used this model to project the fiscal health of the state budget through 2009. Recovery from the 2001 recession will continue through that year. Spending growth will likely be restricted.
Impacts
I use my fiscal impact model for analysis of the budgets of rapidly growing school corporations, and school corporations with declining enrollment. In addition, I have analyzed the effect of riverboat related development on counties, towns and school corporations. With colleagues at Purdue, I am exporing the possibility of incorporating the fiscal impact model in a broader GIS model of Indiana. I have reported the results of my state budget model in talks to business and government groups, on my local government website, and in my monthly newspaper column.
Publications
- No publications reported this period
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Progress 10/01/03 to 09/29/04
Outputs
My research in 2003-04 again was directed towards enhancing a model of the fiscal impact of development for Indiana counties, municipalities and school corporations. In addition, I began developing a model of the Indiana state budget. Indiana underwent a statewide property reassessment in 2002-03. For the first time, property was assessed based on 100% of market value, or predicted selling price. The data from this reassessment are only now becoming available. In addition, in November 2003 the state legislature altered the property tax controls. As of 2005-06 assessments will be updated annually, and as of 2006-07 business inventories will be exempt from property taxes. All of these policy changes have the potential to alter past results about the fiscal impacts of development on local budgets. During 2003-04 I began to gather the data required to revise the fiscal impact model. I designed a model of the Indiana state budget to address the following problem. The 2001
recession and the end of the stock market boom caused a shortfall of revenues. Continued rapid growth in Medicaid spending and added property tax relief designed to soften the tax shifts from reassessment increased spending. Indiana has now exhausted its rainy day funds, and used up most available "fiscal gimmicks" for balancing the budget. The preliminary results of the model imply that over the next four years, the state must raise $1.7 billion more in revenues than it spends, in order to be prepared for the next recession.
Impacts
The fiscal impact model will benefit local decision-makers by allowing quicker and easier analysis of the fiscal impacts of development. Recent changes in assessment practices and property tax controls may alter the impacts of development on local budgets. The state budget was hit hard by the 2001 recession. A model of the state budget shows what must be done over the next four years if the budget is to recover.
Publications
- No publications reported this period
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Progress 10/01/02 to 09/30/03
Outputs
My research in 2002-03 was directed towards enhancing a model of the fiscal impact of development for Indiana counties, municipalities and school corporations. Fiscal impact analysis compares estimates of the added revenues and added costs generated by a new development. Past models have concentrated on accounting for the type of development (residential, commercial, industrial). An enhanced model is being developed to take account of the density of development and the existing capacity of the local governments, in addition to development type. I am currently exploring the possibility of integrating the fiscal impact model with a GIS models of water quality and wildlife habitat. This would have the advantage of providing a more comprehensive decision-making tool for local officials. In addition, it would improve the user interface by allowing users to draw development types and boundaries on a screen, rather than inputting numbers into cells. Local officials often ask
about fiscal impact in a particular way: how valuable must a home be to break even, that is, to generate added revenues equal to added costs. Such a figure will differ for every jurisdiction, and by government type (cities, counties, school districts). It will also depend on the costs imposed on the jurisdiction by the household living in the new home, especially the size of the household and (for school districts) the number of children in the household. Despite these difficulties, a break even housing value can be calculated for each jurisdiction, and should be an aid to local decision-making.
Impacts
The fiscal impact model will benefit local decision-makers by allowing quicker and easier analysis of the fiscal impacts of development. When combined with the water quality and wildlife habitat modules in a GIS model, local decision-makers will have access to an easy-to-use analytical tool which can produce comprehensive results. This information ought to aid officials in making land-use decisions that are most appropriate for the local community from these three perspectives.
Publications
- No publications reported this period
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Progress 10/01/01 to 09/30/02
Outputs
My research in 2001-02 was directed towards creating a model of the fiscal impact of development for Indiana counties, municipalities and school corporations. Fiscal impact analysis compares estimates of the added revenues and added costs generated by a new development. This model will improve upon past effort by taking account of the type of development (residential, commercial, industrial), the density of development, the existing capacity of the local governments. The model will be created for use by local decision-makers, and so will have straightforward input and output screens. The model will ultimately be integrated with models of water quality and wildlife habitat, to provide a more comprehensive decision-making tool for local officials. The literature on fiscal impact has been investigated, focusing especially on the effects of development concentration and government capacity. Literature reviews in this area can be a challenge because so much of the research
is done for particular local governments by private consultants. The models used are often proprietary. I managed to find research on concentration and capacity that had not been incorporated into our Indiana fiscal impact models before. To construct a model usable by local decision makers, data on the budgets, appropriations, revenues, tax rates and population characteristics of 92 counties, 294 school corporations and 560 cities and towns were collected. A model that would require local decision-makers to know local government appropriations or tax rates would be little used, because this information is often hard to acquire. In this model, users will identify the local government in which they are interested, and the model will use the appropriate budget and tax data. One problem sometimes encountered is that the data for a local jurisdiction must be complete before any analysis can be done. One missing data point means that fiscal impact for the jurisdiction cannot be done. This
means that though over 90% of the data have been collected, only 50% of the units in the model can be analyzed. As the remainder of the data are collected or estimated, this figure will approach 100%. Users of the fiscal impact model will be asked to enter a few responses into an Excel spreadsheet to identify a particular local government, and a few details about the development. The model then locates the tax and budget data for the local government, then applies these data using fiscal impact methods to the development characteristics. The model's formulas are complete. It is likely that the eventual comprehensive water quality, wildlife habitat and fiscal impact decision tool will require a different software platform. The fiscal impact model will have to be adapted from its current spreadsheet format.
Impacts
The fiscal impact model will benefit local decision-makers by allowing quicker and easier analysis of the fiscal impacts of development. When combined with the water quality and wildlife habitat modules of the overall model, local decision-makers will have access to a usable analytical tool which can produce comprehensive results. This information ought to aid officials in making land-use decisions that are most appropriate for the local community from these three perspectives.
Publications
- No publications reported this period
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Progress 10/01/00 to 09/30/01
Outputs
In five Indiana counties and seven Indiana municipalities, perhaps the most important economic development project of the past few years has been the advent of riverboat casinos. The casino licenses are now coming up for renewal, and an analysis of their impacts on local communities is called for. The fiscal impact compares the added local government revenues to the added costs generated by the riverboats. In Hammond, Indiana, it was found that the very large amount of gaming revenue from wagering and admissions taxes paid to the city is much greater than the costs imposed by the riverboats and their employees. School corporations do not receive gaming revenue directly, but do benefit from added property taxes on riverboat facilities. In Hammond, school enrollment has continued to decline in the five years since the riverboat arrived. Since school costs are closely associated with enrollment, the riverboat has had a positive fiscal impact on the school corporation.
Indiana population grew by half a million during the 1990s. With this growth has come concern about land use, particularly sprawl, land-intensive development in outlying rural areas. Calculating the fiscal impact of sprawl requires a comparison to development closer to existing developed areas and government infrastructure. Over the next year, a fiscal impact model incorporating measurements of sprawl will be developed.
Impacts
Local tax revenue from riverboats in Indiana greatly exceeds added costs in host counties and cities. In one Indiana school corporation, the new riverboat brought new property tax revenue, but did not reverse the decline in enrollment. The fiscal impact was positive. With population growth comes concern about "sprawl," the development of previously rural areas far from existing developed communities. Knowing the fiscal impact of sprawl, compared to development nearer existing communities, should help local officials and citizens make appropriate development decisions.
Publications
- Five-Year License Renewal: Horseshoe Hammond, Inc., June 2001 Report for the Indiana Gaming Commission, Center for Urban Policy and the Environment, Indianapolis, Indiana, (with D. Klacik, L. Littlepage, S. Payton).
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Progress 10/01/99 to 09/30/00
Outputs
In five Indiana counties and seven Indiana municipalities, perhaps the most important economic development project of the past few years has been the advent of riverboat casinos. This project examined the fiscal impact of riverboats on Indiana counties, cities and school corporations. It was found that, overall, the very large amount of gaming revenue from wagering and admissions taxes paid to counties and municipalities is much greater than the costs imposed on these jurisdictions by the riverboats and their employees. Most riverboat revenue is dedicated to infrastructure costs. The fiscal impact analysis implied a possibility that added revenue available for added operating costs, such as on-going payments to police and fire officers or costs of road maintenance, could be insufficient. Most public officials interviewed failed to see this problem, though it appears to have cropped up in one small county. School corporations do not receive riverboat tax revenue,
though they do receive property tax revenue paid on riverboat property. For the most part, riverboat employees have not brought many new children into the school corporations. Added revenues appear to have exceeded added costs for the school corporations, though it would not take many new students for costs to exceed revenues.
Impacts
Local tax revenue from Indiana's riverboats greatly exceeds added costs in host counties and cities. School corporations, which receive no direct riverboat tax revenue, have approximately broken even. This information can be useful for policy makers reviewing Indiana's five-year experience with riverboat casino gaming.
Publications
- "The Fiscal Impact of Riverboat Casinos on Indiana Local Governments," Chapter 9 in The Social, Fiscal and Economic Impacts of Legalized Gambling in Indiana, Indiana Gaming Impact Study Commission, December, 1999 (56 pages).
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Progress 10/01/98 to 09/30/99
Outputs
Further efforts were made to measure the fiscal impact on local governments of residential, industrial and commercial construction on agricultural land. Such construction increases the property tax base, but also increases service demands as new families move into the community. Results of "project modeling," which looks at the effects of specific developments and specific Indiana jurisdictions, show generally that residential development has a negative fiscal impact, while commercial and industrial development generally has a positive fiscal impact. Statistical analyses of Indiana county and school corporation data were used to provide further evidence on fiscal impact questions. Results show that increases in employment increase the property tax base more than local government costs, while increases in population increase costs more. This supports the results of the project analyses. Greater dispersion of the population tends to be more costly than greater
concentration. Jurisdictions with greater infrastructure capacity, as evidenced by recent capital expenditures, have smaller cost increases from all types of development.
Impacts
Land use is a controversial issue, and fiscal impact is one aspect of this issue. Objective information about this topic is useful in public debate. Draft reports of the results of this research have already been used in debates over land use in several Indiana communities.
Publications
- No publications reported this period
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Progress 10/01/97 to 09/30/98
Outputs
A method was developed to measure the fiscal impact on local governments of residential, industrial and commercial construction on agricultural land. Such construction increases the property tax base, but also increases service demands as new families move into the community. The method takes account of Indiana's particular local revenue and government organization institutions. The results show that residential construction usually has a negative fiscal impact-- added spending requirements exceed added revenues, while industrial and much commercial construction has a positive fiscal impact. If local infrastructure has excess capacity, or the new land uses are closer to infrastructure facilities rather than farther away, all fiscal impacts can be more positive. A theory of property tax assessor behavior was developed and tested. The theory builds on the assumption that assessors set assessment levels to aid their reelection chances. Among the implications of the
theory are that business property will be assessed at higher levels than residential property, and that high valued residential property would be assessed at lower levels than low valued property. Econometric tests using data on Indiana property assessments support these hypotheses.
Impacts
(N/A)
Publications
- No publications reported this period
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Progress 10/01/96 to 09/30/97
Outputs
A method was developed to measure the fiscal impact on local governments of residential construction on agricultural land. Such construction increases the property tax base, but also increases service demands as new families move into the community. The method takes account of Indiana's particular local revenue and government organization institutions. The results show that residential construction usually has a negative fiscal impact--added spending requirements exceed added revenues. If local schools have excess capacity, and the community is willing to accept larger class sizes, the fiscal impact can be near zero or positive. The macroeconomic outlook for the U.S. economy over the next ten years was analyzed. This broad topic was divided into three sections, long term growth, stability, and income distribution. Over the past decade growth has averaged 2.2 percent per year above inflation, the economy has been as stable as any time during this century, and the
distribution of income has become less equal. The outlook for the next ten years is for real growth above inflation to increase to about 2.8 percent per year, for this exceptional stability to continue, and for income inequality to continue to increase but at a slower pace.
Impacts
(N/A)
Publications
- DEBOER, L., AND ZHOU, LEI. 1997. The Fiscal Impact of Residential Development in Unincorporated Wabash Township. Department of Agricultural Economics, Purdue University. 32 pages.
- DEBOER, L., TAYLOR, B. AND TYNER, W. 1997. Macro Economy. In Food System 21: Gearing Up for the New Millennium. Purdue University Cooperative Extension Service E.C.-710.
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Progress 10/01/95 to 09/30/96
Outputs
One way for local governments to enhance efficiency of service delivery, and to continue to provide services under budget contraints, is to form cooperative agreements with other governments. Indiana counties formed waste management districts in mid-1991, with the option of forming single-county districts or joining with other counties in multi-county districts. Fifty-one counties formed single county districts, while forty joined in ten multi-county districts. I analyzed the determinants of these decisions. Larger counties were less likely to join multi-county districts than were smaller counties, probably because they had less to gain from exploiting economies of scale. Counties that were similar in economic and demographic characteristics, such as income levels, were more likely to join with each other. The paper describing these results was submitted to the National Tax Journal, and a #revise and resubmit# was requested. A computer program was developed to measure
the fiscal impact on local governments of residential construction on agricultural land. Such construction increases the property tax base, but also increases service demands as new families move into the community. The results of simulations show that residential construction will usually have a negative fiscal impact--added spending requirements exceed added revenues. If local schools have excess capacity, and the community is willing to accept larger class sizes, the fiscal impact can be near zero or positive.
Impacts
(N/A)
Publications
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Progress 10/01/94 to 09/30/95
Outputs
Larry DeBoer investigated issues in Indiana state and local government. He foundthat Indiana property tax levels are near the national average. The 1974 property tax controls slowed levy growth, though taxes for county welfare are grew rapidly in the 1990s. DeBoer investigated the property tax sale process in Indianapolis. He found that properties in the suburbs were more likely to sell than those in the city center. DeBoer researched tax increment financing (TIF), and found that Indiana's property tax controls largely prevent TIF from reducing the revenues of school corporations. DeBoer found that Indiana auto taxes are quite high on expensive vehicles but quite low on cheaper vehicles. Higher taxes on cheaper vehicles tend to reduce the number of registrations, as do higher auto insurance costs. DeBoer also found that the reasons for the state tax hikes in the 1990s were the recession and increased program commitments during the 1980s. DeBoer also studied government
organization, finding that Indiana public libraries experience economies of scale up to circulations of 55,000 per year.
Impacts
(N/A)
Publications
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Progress 10/01/93 to 09/30/94
Outputs
Much of Larry DeBoer's research effort in 1993-94 was devoted to state fiscal issues, as part of his continuing work with the state Legislative Services Agency. He found that the rapid increase in Indiana property taxes since 1990 is due mainly to county welfare and school corporation expenditures. Property taxes for county welfare are growing rapidly mainly because of the growing expense of services provided to juveniles. School debt service for construction is growing rapidly despite stable enrollment statewide, because of internal migration from cities and rural areas to suburbs, and because the large number of facilities built during the baby boom of 30 years ago are now in need of refurbishment or replacement. DeBoer supervised a dissertation by Sehoon Park. Park found that a state expenditure tax which would replace both the Indiana income and sales taxes could increase both equity and efficiency of the tax system. Efficiency is improved by the elimination of
the income tax on saving, while equity is improved because income paid to the Federal income tax is taxed under the expenditure tax, but not under the sales tax. An expenditure tax would also solve the problem of expanding the sales tax base to include services, and would collect taxes out-of-state mail order sales, which are difficult to collect under the sales tax.
Impacts
(N/A)
Publications
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Progress 10/01/92 to 09/30/93
Outputs
Larry DeBoer spent most of 1992-93 on sabbatical with the Legislative Services Agency, the fiscal research arm of the Indiana General Assembly. Among his findings for LSA were that a one percent rise in price due to an increase in the state cigarette tax cuts sales by 0.75%, half of which represents less smoking and half movements to other states to purchase cigarettes. He found that property taxes have risen more rapidly in the past three years that at any time in the past 25, due to rises in school spending and county welfare costs. He found that slow growth in Indiana corporate income tax revenues is due to cuts in the gross income tax which have offset increases in the net income taxes. DeBoer's research also explained the reasons behind state government tax hikes in the early 1990s. About half of the increase in due to the recession, which cut tax revenues and increased spending requirements. The other half is due to increased program commitments during the
expansion of the 1980s. DeBoer found that the Federal Office of Management and Budget consistently underestimates the federal budget deficit. This is not because OMB's economic assumptions are particularly "rosy", but because their proposed spending levels are generally lower than those eventually enacted.
Impacts
(N/A)
Publications
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Progress 10/01/91 to 09/30/92
Outputs
In 1991-92 Larry DeBoer researched the Indiana property tax. He wrote an extensive review of property tax issues facing Indiana for a Purdue Center for Tax Policy Studies series on government finance, finding that Indiana property tax levels are near the national average, and that the 1974 property tax controls have slowed levy growth. DeBoer continued his work on property tax delinquency, with an investigation of the tax sale process in Indianapolis. He and his colleagues found that properties in the suburbs were more likely to sell than those in the city center, and that parcels offered later in the auction were less likely to sell. DeBoer also researched tax increment financing (TIF), an economic development tool which diverts property tax revenue to infrastructure projects. He found that Indiana's property tax controls largely prevent TIF from reducing the revenues of school corporations, tending to raise tax rates instead. DeBoer also studied government
organization, finding that Indiana public libraries experience economies of scale up to circulations of 55,000 per year. DeBoer contributed to Purdue's long term outlook for agriculture project with a piece on the economic environment. He projected relatively slow Gross Domestic Product growth for the 1990s, with low inflation, and interest rates lower than in the 1980s but higher than in the 1970s.
Impacts
(N/A)
Publications
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Progress 10/01/90 to 09/30/91
Outputs
In 1990-91 Larry DeBoer researched government organization. He used statistical cost functions to find that Indiana's local court system shows significant economies of scale, while local libraries do not. DeBoer and Blackley found that the U.S. state and local government sector is moving towards more privatization of service production due to relative increases in labor and capital costs and increasing demands for services. DeBoer is currently tabulating survey results on interlocal cooperative agreements used by Indiana counties. He is researching the decisions of counties to form multi-county or single county solid waste management districts. DeBoer continued work on property tax delinquency and on state lotteries. He found that both supply of and demand for delinquent properties at Tippecanoe County tax sales increase in years following recessions. Investing in tax delinquent properties appears to bring higher returns with greater risk than bonds, but lesser returns
with lesser risk than stocks. DeBoer's work on state lotteries showed that lotto sales accelerate with increases in jackpot size, which helps explain the large year-to-year variability in state lottery revenue.
Impacts
(N/A)
Publications
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Progress 10/01/89 to 09/30/90
Outputs
In 1989-90 Larry DeBoer analyzed Indiana's motor vehicle excise tax. Working with the state's Legislative Services Agency, he found that excise tax revenue growth is likely to slow in the near future, and that the final version of a series of tax cut proposals will reduce excise tax revenue by about $80 million. DeBoer also researched the impact of property tax differentials on vehicle registrations, finding that higher property taxes have significant negative effects on truck registrations. DeBoer continued his work on property tax delinquency and tax sales. He analyzed the results of a survey of Marion County tax sale bidders, and found that most wanted to obtain property rather than the interest return upon redemption by the original owner. He also completed an extensive review of the tax delinquency/tax sale literature. DeBoer's work on state lotteries continued. He found that the size of the lotto jackpot prize awarded has significant impacts on sales,
implying that states can increase lottery profits by decreasing the odds of winning. Finally, DeBoer worked in the field of defense economics. He found that the increasing reliance on equipment relative to soldiers in the U.S. military is due to the relative rise in military pay, the end of the Vietnam War, the end of the draft, and the defense buildup of the 1980s.
Impacts
(N/A)
Publications
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Progress 10/01/88 to 09/30/89
Outputs
In 1988-89 Larry DeBoer analyzed the Indiana property tax. In his work on property tax reassessment with the state's Budget Agency, he found that the 1990 reassessment will shift about $200 million of the property tax burden from business and farms to homeowners. He also analyzed the impact of the additional property tax credits and deductions created by the legislature to offset this tax shift. DeBoer also researched property tax delinquency, and found that interest rates above delinquency penalty rates encourage taxpayers to withhold their payments. Increases in unemployment and decreases in inflation also increase delinquency. DeBoer has worked in the field of defense economics. His work shows that Congress will respond to shortages of qualified armed forces recruits by increasing recruit pay, but will not usually respond to inflation with cost-of-living increases. DeBoer also found that the declining numbers of young men in the early 1990s will likely force
military pay increases, increases in the number of less-qualified recruits accepted, and decreases in force size. A Vietnam-type war in the 1990s could not be fought with the All-Volunteer force without substantial pay increases to attract sufficient numbers of qualified recruits. DeBoer has also researched unemployment issues. He found that the narrowing differential between male and female unemployment rates experienced in the U.S.
Impacts
(N/A)
Publications
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Progress 10/01/87 to 09/30/88
Outputs
In 1987-88, Larry DeBoer analyzed property tax delinquency and tax sales. Working with James Conrad, he found that the farm recession of the early 1980s increased property tax delinquency rates in rural Indiana counties, and that tax delinquency tends to increase when interest rates rise above delinquency penalty rates. DeBoer prepared a survey on tax sales which was distributed to county auditors through the Association of Indiana Counties. The survey results showed that the requirement that counties add the cost of title searches to delinquent parcel prices reduced the success of tax sales. State lotteries have been another focus of DeBoer's efforts. His research has shown that state lottery provision involves economies of scale, that lottery profits are not maximized by current lottery take-out rates (revenue not returned as prizes), that recent rapid sales growth is likely to slow by 1990-95, and that as lotto prizes increase, lotto sales accelerate DeBoer and Paul
Blackley have researched the determinants of state and local government expenditures and revenues, showing that labor and capital are complements in state and local government production, and demonstrating that expenditure increases tend to be financed by income and sales taxes rather than property taxes. DeBoer has also worked in the fields of labor and defense economics.
Impacts
(N/A)
Publications
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Progress 01/01/87 to 12/30/87
Outputs
In 1986-87 Larry DeBoer analyzed the Indiana property tax assessment system. His work shows that most of the benefits of annual real property reassessment can be had from reassessment on a four-year cycle. DeBoer also projected the impact of the coming 1990 reassessment on county assessed values and taxpayers. With Jim Conrad he has analyzed the impact of the agricultural recession on property tax delinquency. Rising farm debt-asset ratios have increased delinqueny significantly in several rural Indiana counties. DeBoer and Paul Blackley applied a Rotterdam consumer model to state and local government purchases, and investigated the underlying basic wants for public goods using a technique called preference independence transformation. They found a shift over time from a want for physical capital to a want for human capital. Their recent work has been to analyze the reasons behind state and local government choices of property, sales and income tax use. DeBoer
has also worked in the fields of labor and defense economics. He and Mike Seeborg have investigated the reasons behind the declining differential between male and female unemployment rates, and found that both the decline in male-dominated durable goods industries, and rising female labor force participation have contributed. With Wade Brorsen he has analyzed military manpower issues, finding that the declining population of teen-age males is likely to reduce the size of the armed forces in the 1990s.
Impacts
(N/A)
Publications
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Progress 01/01/86 to 12/30/86
Outputs
Larry DeBoer and Paul Blackley analyzed the adoption of a local income tax by Indiana counties. They found that counties with large farmer or homeowner constituencies tend to favor adoption to reduce property taxes, while counties with large industrial or utility property bases tend to reject income taxes. DeBoer also researched the economic impact, incidence and revenue potential of local income taxes. This information has been useful to county officials in making their income tax choices. DeBoer and Blackley are continuing their research in this area, investigating the broader question of what determines a government's mix of sales, income and property taxes. DeBoer has done extensive research on state-sponsored gambling. He has found that state lottery provision involves economies of scale and that the low marginal costs of lotteries imply that current lottery take-out rates are too high to maximize net government revenue. He has estimated that current rapid
lottery growth should slow by the early 1990's. DeBoer has projected the revenue potential of lotteries and horse-race gambling for the state of Indiana. His research results have been useful in Indiana's on-going lottery debate. DeBoer used a non-parametric technique to test whether state government expediture decisions can be modeled as if they resulted from utility maximization. He found the data broadly consistent with the model.
Impacts
(N/A)
Publications
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