CONTENTS
Foreword = ⅸ
Acknowledgments = xi
Data Sources and Definitions = xiii
1 Introduction: Why Study Urban Public Finance? = 1
Urbanization and National Planning = 2
Objectives of this Book = 3
Scope, Method, and Limitations = 5
Plan of the Book = 7
Part Ⅰ A Framework for Analysis = 9
2 The Expenditure and Revenue Structure of Urban Governments = 11
The Importance of Local Government in Developing Countries = 11
What Do Local Governments Do? = 16
Expenditure Patterns = 23
Financing Urban Services = 32
Conclusions: Local Fiscal Performance = 47
3 The Urban Fiscal Problem in Developing Countries: issues and Approaches = 49
Is There an Optimal Size for an Urban Government's Budget? = 49
The Fiscal Gap and the Budget Deficit = 52
Why Do Urban Government Budgets Grow? = 53
Revenue Constraints and Opportunities = 65
Reform and the Prospects for Urban Government Budgets = 68
The Prospects for and Politics of Urban Fiscal Reform = 73
Part Ⅱ Local Government Taxes = 77
4 Property Tax Systems: Practice and Performance = 79
The Importance of Property Taxation = 80
Types of Property Taxation = 83
Annual Value Systems = 84
Capital Value Systems = 90
Site Value Taxation = 96
Is There an Optimal Property Tax Structure for Developing Countries? = 97
Exemptions from the Property Tax Base = 100
Does the Property Tax Generate Adequate Revenue? = 101
Property Tax Administration = 109
Property Tax Reform = 117
5 The Incidence of Urban Property Taxation = 123
Conventional Theories of Incidence = 123
Limitations of the New Orthodoxy = 125
A Framework for a Theory of Incidence in Developing Countries = 131
Empirical Estimates of Incidence = 134
Distributive Effects of Structure and Administration = 143
A Case Study of the Effect of Structure and Administration on Incidence = 160
Summary = 164
6 Allocative Effects of Urban Property Taxation = 165
Property Taxation and Resource Allocation = 165
Property Taxation and Land Use Policy = 166
Allocative Effects and Property Tax Practices = 169
Appendix = 187
7 Automotive Taxation = 190
The Case for Automotive Taxation = 190
Local Automotive Tax Practices in Developing Countries = 193
Objectives of Automotive Taxation = 195
Fuel Taxes = 196
Sales and Transfer Taxes on Motor Vehicles = 199
Unrestricted Annual License Taxes = 200
Congestion Charges = 203
Summary and Evaluation of Local Automotive Taxation = 207
8 Other Urban Taxes = 209
Policy Objectives = 210
Local Income Taxes = = 212
General Sales Taxes = 219
Local Taxes on Industry, Commerce, and Professions = 222
"Terminal" Taxes = 226
Local Sumptuary Taxes = 229
Entertainment Taxes = 231
Minor Local Taxes, Licenses, and Fees = 233
Summary and Evaluation = 236
Part Ⅲ User Charges for Urban Services = 239
9 Issues in Pricing Urban Services = 241
The Efficiency Argument for User Charges = 241
Fiscal Considerations and Full Cost Pricing = 265
Income Distribution Considerations = 271
The Politics and Institutions of Public Service Pricing = 280
10 Charging for Urban Water Services = 286
Pricing Water Supply Services = 289
Sewerage and Drainage = 333
Summary = 341
11 Charging for Other Urban Services = 346
Electricity and Telephone Services = 346
Collecting and Disposing of Solid Waste = 359
Mass Transit = 363
Housing = 367
Development Charges = 374
Part Ⅳ Intergovernmental Fiscal Relations = 383
12 The Structure of Urban Governance = 385
Fiscal Decentralization = 385
The National Structure of Urban Government = 394
The Structure of Large Metropolitan Areas = 403
Evaluating Experiences with Alternative Structures = 411
Summary and Conclusions: The Structure of Local Government and Decentralization = 420
Appendix: Application of the Constrained Maximization Model of Local Fiscal Behavior to Developing Countries = 422
13 Flows and Effects of Intergovernmental Transfers = 428
The Importance of Grants for Revenue = 430
A Typology of Grant Programs = 432
The Pure Shared Tax = 434
Formula Grants = 440
Grants to Reimburse Costs = 446
Ad Hoc Grants = 449
Capital Grants and Loans = 450
Evaluating the Alternatives = 454
Policy Choices = 466
14 Epilogue: Lessons for Policy = 470
The Importance of Urban Government in Developing Countries = 471
The Urban Fiscal Gap = 471
The Allocation of Urban Government Functions and Revenue Authority = 472
Issues in Urban Property Taxation- = 473
Automotive Taxation = 474
Other Local Taxes = 474
User Fees and Development Charges = 475
Intergovernmental Transfers = 477
The Scope and Prospects for Reform = 478
Appendix: Data Sources for Tables = 481
Notes = 493
References and Selected Bibliography = 513
Index = 541
