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Development Impact Fees and the Acquisition of Infrastructure

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Abstract:

This article considers the impact that the use of impact development fees has on the level of capital investment made by local governments in the United States. Using a sample of 85 cities, we find that the use of fees is associated with lower levels of capital spending. The data also reveal that the debt-to-expenditure ratio for these cities is associated with higher levels of capital spending, leading us to conclude that fees act as a quasi-pricing mechanism regulating the amount of capital investment demanded by developers.

Document Type: Research Article

Affiliations: 1: University of North Texas 2: Texas A&M University

Publication date: September 1, 1999

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