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An Efficiency Comparison of City Managers and Elected Mayors

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Author Info
Steven F. Kreft (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)

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Abstract

Previous research has concluded that there are no efficiency differences between elected mayor-council (EMC) and council-manager (CM) city governments. However, the CM form has recently surpassed the EMC form to become the most popular U.S. city government. This paper provides an alternative method of testing the relative efficiency of the two forms of government. Relying on capitalization theory of local public goods, I develop a hedonic price model for Ohio metropolitan home sales. Results show that houses within a CM city have a pricing premium that can be attributed to the relative efficiency of the CM government.

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File URL: http://www.bus.indiana.edu/riharbau/RePEc/iuk/wpaper/bepp2007-02-kreft.pdf
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Publisher Info
Paper provided by Indiana University, Kelley School of Business, Department of Business Economics and Public Policy in its series Working Papers with number 2007-02.

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Date of creation: Jan 2007
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Handle: RePEc:iuk:wpaper:2007-02

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Related research
Keywords: city manager; government efficiency; local public goods; hedonic; capitalization;

Find related papers by JEL classification:
H7 - Public Economics - - State and Local Government; Intergovernmental Relations
H4 - Public Economics - - Publicly Provided Goods
H1 - Public Economics - - Structure and Scope of Government

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Davis, Michael L & Hayes, Kathy, 1993. "The Demand for Good Government," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 148-52, February. [Downloadable!] (restricted)
  2. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June. [Downloadable!] (restricted)
  3. Rosen, Harvey S & Fullerton, David J, 1977. "A Note on Local Tax Rates, Public Benefit Levels, and Property Values," Journal of Political Economy, University of Chicago Press, vol. 85(2), pages 433-40, April. [Downloadable!] (restricted)
  4. Bartel, Ann & Lewin, David, 1981. "Wages and Unionism in the Public Sector: The Case of Police," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 53-59, February. [Downloadable!] (restricted)
  5. David M. Brasington, 2000. "Demand and Supply of Public School Quality in Metropolitan Areas: The Role of Private Schools," Journal of Regional Science, Blackwell Publishing, vol. 40(3), pages 583-605. [Downloadable!] (restricted)
  6. Haurin, Donald R. & Brasington, David, 1996. "School Quality and Real House Prices: Inter- and Intrametropolitan Effects," Journal of Housing Economics, Elsevier, vol. 5(4), pages 351-368, December. [Downloadable!] (restricted)
  7. Haughwout, Andrew F., 1997. "Central city infrastructure investment and suburban house values," Regional Science and Urban Economics, Elsevier, vol. 27(2), pages 199-215, April. [Downloadable!] (restricted)
  8. David M. Brasington, 1999. "Which Measures of School Quality Does the Housing Market Value?," Journal of Real Estate Research, American Real Estate Society, vol. 18(3), pages 395-414. [Downloadable!]
  9. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-64, August. [Downloadable!] (restricted)
  10. Yinger, John, 1982. "Capitalization and the Theory of Local Public Finance," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 917-43, October. [Downloadable!] (restricted)
  11. David Brasington & D. Haurin, . "Educational Outcomes and House Values: A Test of the Value-Added Approach," Departmental Working Papers 2003-05, Department of Economics, Louisiana State University.
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  12. Brueckner, Jan K., 1979. "Property values, local public expenditure and economic efficiency," Journal of Public Economics, Elsevier, vol. 11(2), pages 223-245, March. [Downloadable!] (restricted)
  13. Brasington, David M., 2001. "Capitalization and Community Size," Journal of Urban Economics, Elsevier, vol. 50(3), pages 385-395, November. [Downloadable!] (restricted)
  14. Ehrenberg, Ronald G. & Goldstein, Gerald S., 1975. "A model of public sector wage determination," Journal of Urban Economics, Elsevier, vol. 2(3), pages 223-245, July. [Downloadable!] (restricted)
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Cited by:
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  1. Paul A. Raschky & Hannelore Weck-Hannemann, . "Who is going to save us now? Bureaucrats, Politicians and Risky Tasks," Working Papers 2007-29, Faculty of Economics and Statistics, University of Innsbruck. [Downloadable!]
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