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Population need

0.144***

0.043

Fiscal conditions

0.054

0.710

Business influence

0.112

0.101

Elected officials’ support

0.187**

0.082

Economic development plan

0.443**

0.173

Form of government

0.322

0.225

Form of government

–1.068**

0.503

Central city

–0.598

0.606

Population (log)

2.638***

0.743

Population growth rate 1980-1990 (inverse)

–1.616

1.500

Northeast region

0.948

1.008

South region

–1.329*

0.787

West region

–1.711**

0.738

–0.289

0.283

–0.505*

0.258

0.246

0.282

The results indicate that business does not influence decisions about economic development expenditures, or at least the influence is not perceived as an important factor in these decisions. This finding may reflect a goals compatibility between entrepreneurial city administrators and

Intercity competition (log)

–0.736**

0.305

Population need

0.058

0.095

Fiscal conditions

–1.000

2.027

Business influence

–0.156

0.302

Elected officials’ support

0.603***

0.183

Economic development plan

1.101*

0.580

Population (log)

2.345***

0.358

Population growth rate 1980-1990 (inverse)

2.320***

0.551

economic development. Schneider’s interpretation would suggest that competition suppresses spending in all policy areas.

The support of elected officials for economic development activities and the existence of formal economic development planning had positive impacts in both models. These findings are reason- able, and the former is consistent with existing studies. Cities with a strong mayor-council form of government (compared to council-manager or other forms) were less likely to spend more on eco- nomic development. This finding is contrary to some previous studies but may reflect the rise of the economic development profession and entrepreneurial spirit of city administrators (Eisinger, 1988). In other words, economic development is no longer controlled by elected officials, such as mayors, but instead may be led, even if tacitly, by professional bureaucrats such as the city manager (Basolo, 2000). Formal planning is positively associated with the dependent variable in both mod- els. It may be that planning reflects a desire to support economic development and acts as the blue- print for making expenditure decisions. Cities without planning may consider economic development as a lower policy priority and refrain from spending in this area.

NOTE: n = 322, F = 2.74*** (df = 13,295). *p = .10. **p = .05. ***p = .01.

TABLE 6

336

Central city

Northeast region South region West region

NOTE: n = 295, R2 = .36, F = 10.69*** (df = 13,268). *p = .10. **p = .05. ***p = .01.

  • 0.153

0.221

Linear Regression: Economic Development Expenditures, Fiscal Year 1994-1995

ECONOMIC DEVELOPMENT QUARTERLY / November 2001

TABLE 5

Logistic Regression: Economic Development Expenditures, Fiscal Year 1994-1995

Variable

Parameter Estimate

SE

Variable

Parameter Estimate

Intercity competition (log)

–0.009

SE

0.101

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