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American Economic Journal: Economic Policy: Vol. 3 No. 3 (August 2011)
AEJ: Policy Volume. 3, Issue 3 | 
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AEJ: Policy Forthcoming Articles
Government Form and Public Spending: Theory and Evidence from US Municipalities
Article Citation
Coate, Stephen, and
Brian Knight. 2011. "Government Form and Public Spending: Theory and Evidence from US Municipalities."
American Economic Journal: Economic Policy,
3(3): 82-112.
DOI: 10.1257/pol.3.3.82
DOI: 10.1257/pol.3.3.82
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)
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Authors
Coate, Stephen (Cornell U)
Knight, Brian (Brown U)
Knight, Brian (Brown U)
JEL Classifications
H11: Structure, Scope, and Performance of Government
H72: State and Local Budget and Expenditures
R51: Finance in Urban and Rural Economies
H72: State and Local Budget and Expenditures
R51: Finance in Urban and Rural Economies
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