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

Abstract

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 identi ed 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

Goodman, Christopher B., Local Government Fragmentation & the Local Public Sector: A Panel Data Analysis (January 1, 2015). Goodman, Christopher B. 2015. Local Government Fragmentation & the Local Public Sector: A Panel Data Analysis. Public Finance Review 43 (1): 82–107.. Available at SSRN: https://ssrn.com/abstract=2170783 or http://dx.doi.org/10.2139/ssrn.2170783

Christopher B. Goodman (Contact Author)

University of Nebraska at Omaha ( email )

6001 Dodge Street
Omaha, NE 68182
United States

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