지방정부의 재정력과 인구규모관계에 대한 연구

A Study on the Fiscal Capacity of Local Government and the Population Size

The old understanding is that the tax revenue and expenditure of local government increase with population size. This study aims to look at the effect of population size on fiscal capacity of local government. The empirical results support the theory. First, the population size is a determinant of tax revenue and expenditure of local government. Secondly, tax revenue increases with population size of the local government at a non-decreasing rate. Thirdly, the local government expenditure increases with it at a decreasing rate. Fourth, the fiscal capacity gets bigger with the population size, which is in conflict with the fact that the fiscal capacity defined by tax revenue minus expenditure decreases until the population reaches at the medium-sized level. To sum up, it looks true that fiscal capacity is bigger in the local government with more population than in that with less population.