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Local Government Fragmentation and the Local Public Sector

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  • Christopher B. Goodman

Abstract

This study analyzes the influence of fragmentation and concentration variables on per capita direct expenditures for all counties in the United States from 1982 to 2002. Building on recent research, fragmentation and concentration variables are developed to incorporate the horizontal as well as the vertical dimensions. This analysis explicitly takes into account the potential simultaneity between individual preferences for the spatial arrangement of local governments and the size of the local public sector using the element of time. The findings suggest that increased levels of fragmentation lead to an enlargement of the local public sector; however, the results are more complex than expected. Similarly, the concentration of service delivery responsibilities into counties and single purpose districts tends to increase the size of the local public sector.

Suggested Citation

  • Christopher B. Goodman, 2015. "Local Government Fragmentation and the Local Public Sector," Public Finance Review, , vol. 43(1), pages 82-107, January.
    • Handle: RePEc:sae:pubfin:v:43:y:2015:i:1:p:82-107
    DOI: 10.1177/1091142113515048
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    References listed on IDEAS

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    Cited by:

    1. Christopher B Goodman, 2018. "Usage of Specialized Service Delivery: Evidence from Contiguous Counties," Publius: The Journal of Federalism, CSF Associates Inc., vol. 48(4), pages 686-708.
    2. Spencer T. Brien & Wenli Yan, 2020. "Are Overlapping Local Governments Competing With Each Other When Issuing Debt?," Public Budgeting & Finance, Wiley Blackwell, vol. 40(2), pages 75-92, June.
    3. Yonsu Kim & Jae Hong Kim, 2022. "What drives variations in public health and social services expenditures? the association between political fragmentation and local expenditure patterns," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(5), pages 781-789, July.
    4. Ali, Amin Masud & Savoia, Antonio, 2023. "Decentralisation or patronage: What determines government's allocation of development spending in a unitary country? Evidence from Bangladesh," European Journal of Political Economy, Elsevier, vol. 78(C).
    5. Touria Jaaidane & Sophie Larribeau, 2021. "When Cooperation tames the Leviathan and Partisan-distorted Grant Allocation feeds it: Evidence from French Municipalities," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2021-04, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

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