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County capital cities, county public finance and county economic geography


  • Kristof Dascher



We are interested in the county government’s role for the county seat economy. Our suggestion is this: Rather than discuss changes in county seat location at a given budget (representing a rare natural experiment), we should look at changes in county budget holding fixed county seat location (yielding a steady flow of observations). In the paper’s model changes in the county budget translate into changes in county seat employment. In the paper’s empirical test against a sample of German county seats we find it difficult to reject this. Copyright Springer-Verlag Berlin/Heidelberg 2004

Suggested Citation

  • Kristof Dascher, 2004. "County capital cities, county public finance and county economic geography," Economics of Governance, Springer, vol. 5(3), pages 213-233, November.
  • Handle: RePEc:spr:ecogov:v:5:y:2004:i:3:p:213-233 DOI: 10.1007/s10101-004-0076-8

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    References listed on IDEAS

    1. repec:cup:apsrev:v:77:y:1983:i:02:p:297-322_24 is not listed on IDEAS
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    6. Buchanan, James M & Lee, Dwight R, 1982. "Politics, Time, and the Laffer Curve," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 816-819, August.
    7. Henrick Horn & Asher Wolinsky, 1988. "Bilateral Monopolies and Incentives for Merger," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 408-419, Autumn.
    8. Chan, Kenneth S. & Mestelman, Stuart, 1988. "Institutions, efficiency and the strategic behaviour of sponsors and bureaus," Journal of Public Economics, Elsevier, vol. 37(1), pages 91-102, October.
    9. Bernheim, B Douglas & Whinston, Michael D, 1986. "Common Agency," Econometrica, Econometric Society, vol. 54(4), pages 923-942, July.
    10. Fedeli, Silvia, 1999. "Competing Bureaus and Politicians: A Compliance Approach to the Diversion of Public Funds," Public Choice, Springer, vol. 100(3-4), pages 253-270, September.
    11. Carlsen, Fredrik & Haugen, Kjetil, 1994. "Markov Perfect Equilibrium in Multi-period Games between Sponsor and Bureau," Public Choice, Springer, vol. 79(3-4), pages 257-280, June.
    12. Breton, Albert & Wintrobe, Ronald, 1975. "The Equilibrium Size of a Budget-maximizing Bureau: A Note on Niskanen's Theory of Bureaucracy," Journal of Political Economy, University of Chicago Press, vol. 83(1), pages 195-207, February.
    13. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-643, December.
    14. Andrei Shleifer & Robert W. Vishny, 1994. "Politicians and Firms," The Quarterly Journal of Economics, Oxford University Press, vol. 109(4), pages 995-1025.
    15. Daems, A.J., 1990. "Budgeting the non-profit organization : An agency theoretic approach," Research Memorandum 6377191a-f918-4f1e-a71a-3, Tilburg University, School of Economics and Management.
    16. Moene, Karl O., 1986. "Types of bureaucratic interaction," Journal of Public Economics, Elsevier, vol. 29(3), pages 333-345, April.
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    Cited by:

    1. Sidney Turner & Richard Turner, 2011. "Capital cities: a special case in urban development," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(1), pages 19-35, February.


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