Smarter City, Smarter Investment? A Study of the Relationship between 311 Systems and Credit Ratings in American Cities
29 Pages Posted: 15 Dec 2017
Date Written: December 12, 2017
This article investigates the relationship between credit ratings and a local governments’ decisions to utilize one type of smart city innovation—the 311 system (non-emergency versions of 911 that utilize phone, web, and mobile application interfaces). We pair longitudinal financial data with information on the implementation of 311 systems. The results of our analysis demonstrate that 311 systems, particularly web-based 311, do, in some instances, have a positive influence on the credit rating of a city. Additionally, we find that the duration since 311 was adopted is positively related with credit ratings. Again, the effect is especially pronounced with the web-based 311. These results suggest cities with 311 systems and those that have had 311 in place longer have higher credit ratings. These results could indicate that cities with 311 are better managed or that they are simply more transparent to investors, thus pose lower risks.
Keywords: 311 systems, smart cities, credit ratings, public finance
JEL Classification: H41, R51, R53
Suggested Citation: Suggested Citation