JOURNAL ARTICLE
Rethinking Development and Redistribution Policy: Testing the Local Expenditure Assumption using the Community Development Block Grant Program
- Title:
- Rethinking Development and Redistribution Policy: Testing the Local Expenditure Assumption using the Community Development Block Grant Program
- Authors:
- Overton, Michael Stokan, Eric
- Year:
- 2025
- Output Type:
- Journal Article
- Venue:
- Journal of Urban Affairs
- Venue Type:
- Peer-reviewed journal
- Status:
- Published
- Theme:
- Municipal Finance and Budgeting
- Sub-theme:
- Economic Development
- Shared Trajectory:
- Community Development Block Grants
- Abstract:
- Local governments make important public service decisions based on a critical assumption from urban political economy scholarship that development activities lead to economic growth, while redistributive activities do not. Using the Community Development Block Grant (CDBG) program, we test this local expenditure assumption by exploring the differential effectiveness of CDBG activities on individual and neighboring residential and commercial property values. To this end, we challenge the notion that development policies frequently improve economic returns while redistributive policies do not. We analyze the economic impact of 16 different CDBG activities on more than seven million properties between 2004 and 2017 in Dallas County, Texas. We find strong evidence that, contrary to conventional wisdom, redistributive policies can yield positive economic returns while development expenditures have mixed results. These findings have important implications for local governments seeking to grow their economy equitably.
- Topics:
- Local expenditure CDBG Redistribution Urban policy
- DOI:
- https://doi.org/10.1080/07352166.2023.2171880
- Citations (OpenAlex):
- 7
- OpenAlex ID:
- W4321492372
- Full Citation:
- Overton, Michael and Eric Stokan. (2025). "Rethinking Development and Redistribution Policy: Testing the Local Expenditure Assumption using the Community Development Block Grant Program." Journal of Urban Affairs, 47 (1), 214-234. https://doi.org/10.1080/07352166.2023.2171880
Cite this work
Published
Reference
Overton, Michael; Stokan, Eric (2025). Rethinking Development and Redistribution Policy: Testing the Local Expenditure Assumption using the Community Development Block Grant Program. Journal of Urban Affairs.
@article{overton2025_rethinking_development_a,
title = {Rethinking Development and Redistribution Policy: Testing the Local Expenditure Assumption using the Community Development Block Grant Program},
author = { Overton, Michael and Stokan, Eric },
year = {2025},
journal = {Journal of Urban Affairs},
doi = {10.1080/07352166.2023.2171880},
url = {https://www.michaeloverton.net/research/items/rethinking_development_and_redistribution_policy_testing_the.html}
}