; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Pay with Promises or Pay as You Go? Lessons from the Death Spiral of Detroit"; ; "batchuser@example.com"; "Holmes, Thomas J.", "Ohanian, Lee E."; "Federal Reserve Bank of Minneapolis"; "City growth", "Detroit", "Defined benefit pension plans", "Pay with promises", "Death spiral", "Retiree health benefits"; "H20 - Taxation, Subsidies, and Revenue: General", "R51 - Finance in Urban and Rural Economies", "H75 - State and Local Government: Health; Education; Welfare; Public Pensions", "R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics"; "As part of compensation, municipal employees typically receive promises of future benefits. Motivated by the recent bankruptcy of Detroit, we develop a model of the equilibrium size of a city and use it to analyze how pay-with-promises schemes interact with city growth. The paper examines the circumstances under which a death spiral arises, where cutbacks of city services and increases in taxes lead to an exodus of residents, compounding financial distress. The model is put to work to analyze issues such as the welfare effects of having cities absorb pension risk and how unions affect the likelihood of a death spiral."^^; "2014-07-14"; "2019-05-17T14:28:01.138708669+00:00"^^; "https://doi.org/10.21034/sr.501"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Thu Nov 7 20:58:14 2019"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "343", "572"; "Staff report (Federal Reserve Bank of Minneapolis. Research Department)"; "501"; "Defined benefit pension plans", "Death spiral", "Retiree health benefits", "Detroit", "City growth", "Pay with promises"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; ; "Publication" . ; .