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Abstract
The recent reversal in the intraregional migration into nonmetropolitan
areas has generated a great deal of interest in the
problems of local government finance .. or specific concern are
the changes in local government expenditures and revenues that
have accompanied population growth and decline and related
shifts in population composition in nonmetropolitan areas of the
Northeast. Using a supply and demand framework, it is argued
that the approach used in previous studies of examining the
relationship between growth rates and various fiscal variables
leads to biased inferences regarding the impact of growth. By
analyzing the impacts of changes in the socioeconomic make-up
of the population which often accompany growth and decline,
the study increases the understanding of fiscal strains on local
governments resulting from population shifts.