Spatial data mining in local finance

Data mining is the automatic process of sorting through large amounts of data and discovering patterns. It has been described as "the nontrivial extraction of implicit, previously unknown, and potentially useful information from data" (Frawley et al 1992). For an introduction to data mining, see presentation slides on the website of Professor Robert Stine, from whom I learned the topic at ICPSR. 

Spatial data ming is the application of data mining techniques to spatial data, with the objective to discover spatial patterns. Still at the early stage of development, spatial data mining is considered a new field with boundaries yet to be defined. In general, spatial data mining focuses more on large data sets and tend to be exploratory in nature, with heavy reliance on newly developed computational powers (Professor Guo). 

In a recent project I am using exploratory spatial data analysis (EDA) to visualize and analyze spatial patterns of inter-local fiscal relations with a comprehensive database that include hundreds of fiscal variables for all local governments in Georgia. This may be an example of spatial data mining in the study of public finance and local government management. I am eager to meet others with similar interests. (Click here to get my presentation slides on ABFM 2007.)

Some resources about spatial data mining: 

1. Spatial data mining research group in UMN
   
2. Spatial data mining @ University of Munich

More to come...

Value capture: Presentation at the Citizens League's Policy Forum.

On May 6, the Citizens League organized a policy forum on "Transparent Funding Options for Meaningful Transportation Choices." Held at the Minneapolis Central Library, the event featured David Levinson as the "mind opener" and then Tyler Duvall at U.S. DOT as the keynote speaker. Finally, a panel of managers and scholars including me shared perspectives on transportation choices and funding mechanisms, followed by a more focused discussion on value capture.

Please click here for my presentation on value capture.

For our Public Affairs in 2020 meeting

Draft script for our Public Affairs in 2020 meeting:

While the world is becoming increasingly globalized, I am focusing on local government fiscal issues. Global devolution pushes more responsibilities down to lower levels of government which are closer to our daily lives. They need our help to become more responsible, viable, and accountable!

We are moving toward a new system of governance, in which governments will redefine their relations with taxpayers, with other governments, and with nonprofit or private organizations. To meet these challenges, I am doing research on how local governments get alternative sources of revenue; how they relate to each other in the overlapping and fragmented governmental system; and how they may develop alternative modes of service delivery including contracting out, privatization, or public-private partnerships. I apply the research framework across states and even beyond, because diverse contexts provide comparative perspectives to enhance our knowledge.

In terms of research methods, I am trying to integrate traditional statistical models with GIS-based spatial data analysis. I like to incorporate these skills into teaching and pass them on to students. Location matters for all social phenomena; spatial thinking with advanced modern technologies helps for understanding and solving our policy problems.

[revised on 04/07]

Peer-review publications

1. "Local Option Sales Taxes and Fiscal Disparities among Localities: Evidence from Georgia,” Zhirong Zhao and Yilin Hou, Public Budgeting and Finance, 2008(28), 39-57.
   
2. “Is Management Performance a Factor in Municipal Bond Credit Ratings? The case of Texas School Districts,” Dwight Denison, Wenli Yan, and Zhirong Zhao, Public Budgeting and Finance, 2007(27), 86-98. (A different version of working paper from the same project.)
   
3. “Motivations, Obstacles, and Resources: The Adoption of the General Purpose Local Option Sales Tax in Georgia Counties,” Zhirong Zhao, Public Finance Review, 2005 (33), 721-746.
4. “Morality Policy and Unintended Consequences: China’s ‘One Child’ Policy,” Jerome S. Legge and Zhirong Zhao, Chinese Public Administration Review, 2004 (3), 30-45.
   

Other publications in English

1. Book Chapter, “Expenditures and Revenues of US Governments,” in Handbook of Governmental Accounting, Zhirong Zhao, edited by Frederic Bogui, New York, NY: Marcel Dekker Inc. (In press)
   

Publications in other languages

1. Multiple book chapters, in National Register of Historical Cities in China (in Chinese), edited by Chinese National Ministry of Construction & Chinese National Bureau of Heritage, Zhirong Zhao, Chinese Youth Publishing House, Dec. 2002
2. Multiple book chapters, in Historic Cities in China (in Japanese), Zhirong Zhao, edited by Zixuan Zhu et al, Kajima Institute Publishing Co., July 2001
3. “The Value Conceptualization of Historic Preservation – Toward Sustainable Resource, Environment, and Benefits,” Zhirong Zhao, Urban Planning Forum (in Chinese), 1999 (1)(citations)
   
4. “Preservation and Renewal of Historic Districts (PDF),” Zhirong Zhao, New Architecture (in Chinese), June 1998 （citations)
   
5. “The Marginal-information View of Historic District Preservation,” Zhirong Zhao, selected into Proceedings of International Seminar on Conservation and Development of Historic Cities in Northeastern Asia (in Chinese), 1998
6. "Historical District Preservation -- Conceptualization and Policy Recommendations," Zhirong Zhao, Master Thesis, Tongjing University, 1997. (citations)