The politics of disinvestment: a case study of infrastructure disinvestment in Knoxville, Tennessee

This study is concerned with the problem of infrastructure dis investment. Infrastructure disinvestment is defined as the physical deterioration of a city's stock of public overhead capital which results from a systematic decline in expenditures for maintenance and restoration of the existing stock of physical assets or a decline in expenditure for the construction or acquisition of new infrastructures. The study focuses on the problem of infrastructure disinvestment in one southeastern city—Knoxville, Tennessee. Two basic questions are addressed. Is infrastructure disinvestment a problem in Knoxville, and, if so, what are the underlying economic, social and political causes of this problem?

Concerning the former issue, a methodology is set forth for the assessment of changes in the condition of infrastructure over time. In order to identify and describe the salient factors in the urban environment which result in the deterioration of a city's capital stock, a model of infrastructure disinvestment is developed. Building on previous research, the model incorporates the concepts of fiscal stress and urban decline. These concepts are defined in measurable terms called indicators. The indicators are then tracked over the period 1960 to 1982. The model is designed to allow for the analysis of the problem of infrastructure disinvestment in comparative perspective. Comparative study brings to light those causes of disinvestment which tend to be ubiquitous to cities experiencing this problem and those causes which are idiosyncratic to Knoxville.

An important finding of the study is that those infrastructure which are supported through general obligation indebtedness, such as roads and bridges, have suffered considerable disinvestment compared to those elements of the public capital stock which are financed through user charges, such as the sewer system.