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Government Form and Public Spending: Theory and Evidence from US Municipalities

Author

Listed:
  • Stephen Coate
  • Brian Knight

Abstract

There are two main forms of government in US cities: council-manager and mayor-council. This paper develops a theory of fiscal policy determination under these two forms. The theory predicts that expected public spending will be lower under mayor-council but that either form of government could be favored by a majority of citizens. The latter prediction means that the theory is consistent with the coexistence of both government forms. Support for the former prediction is found in both a cross-sectional analysis and a panel analysis of changes in government form. (JEL H11, H72, R51)

Suggested Citation

  • Stephen Coate & Brian Knight, 2011. "Government Form and Public Spending: Theory and Evidence from US Municipalities," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 82-112, August.
    • Handle: RePEc:aea:aejpol:v:3:y:2011:i:3:p:82-112
    Note: DOI: 10.1257/pol.3.3.82
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    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Government Form and Public Spending: Theory and Evidence from US Municipalities (American Economic Journal: Economic Policy 2011) in ReplicationWiki

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