Local Government Fragmentation & the Local Public Sector: A Panel Data Analysis
Goodman, Christopher B. 2015. Local Government Fragmentation & the Local Public Sector: A Panel Data Analysis. Public Finance Review 43 (1): 82–107.
28 Pages Posted: 4 Nov 2012 Last revised: 8 Dec 2017
Date Written: January 1, 2015
This study analyzes the influence of multiple fragmentation and concentration variables on per capita expenditures for all counties in the United States from 1982 to 2002. Fragmentation and concentration variables are grouped along total, horizontal and vertical lines as identied in the literature. The results of this analyses suggest that increases in overall fragmentation leads to higher per capita expenditures; however, supplemental analyses demonstrate this result is being driven by the proliferation of single purpose governments. The analyses also shows that concentration of spending in school districts leads to lower per capita expenditures on average. Results are somewhat sensitive to disaggregation into MSA and non-MSA components. This analyses demonstrates that time is an important consideration and the relationship between fragmentation and the size of the local public sector is not straightforward.
Keywords: Local Government Expenditures, Federalism, Tiebout
JEL Classification: H72, H73, H77
Suggested Citation: Suggested Citation