Government Form and Public Spending: Theory and Evidence from US Municipalities
American Economic Journal: Economic Policy
vol. 3,
no. 3, August 2011
(pp. 82-112)
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)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.3.3.82Additional Materials
JEL Classification
- H11 Structure, Scope, and Performance of Government
- H72 State and Local Budget and Expenditures
- R51 Finance in Urban and Rural Economies
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