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An Efficiency Comparison of City Managers and Elected Mayors

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  • Steven F. Kreft

    (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)

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.

Suggested Citation

  • Steven F. Kreft, 2007. "An Efficiency Comparison of City Managers and Elected Mayors," Working Papers 2007-02, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    • Handle: RePEc:iuk:wpaper:2007-02
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    File URL: http://kelley.iu.edu/riharbau/RePEc/iuk/wpaper/bepp2007-02-kreft.pdf
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    References listed on IDEAS

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    Cited by:

    1. Thompson, Paul N., 2017. "Effects of fiscal stress labels on municipal government finances, housing prices, and the quality of public services: Evidence from Ohio," Regional Science and Urban Economics, Elsevier, vol. 64(C), pages 98-116.
    2. Mark Partridge & Tim Sass, 2011. "The productivity of elected and appointed officials: the case of school superintendents," Public Choice, Springer, vol. 149(1), pages 133-149, October.
    3. Paul A. Raschky & Hannelore Weck-Hannemann, "undated". "Who is going to save us now? Bureaucrats, Politicians and Risky Tasks," Working Papers 2007-29, Faculty of Economics and Statistics, Universität Innsbruck.
    4. Hourie, Eitan & Malul, Miki & Bar-El, Raphael, 2015. "The social value of municipal services," Journal of Policy Modeling, Elsevier, vol. 37(2), pages 253-260.

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    More about this item

    Keywords

    city manager; government efficiency; local public goods; hedonic; capitalization;
    All these keywords.

    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

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