America's local governments spend about one-eighth of our national income, one-fourth of total government spending, and employ over 14 million people. This paper surveys the large and growing economics literature on local governments and their finances. A primary difference between local and...

Classic theories suggest that common pool resources are subject to overexploitation. Community-based resource management approaches may ameliorate "tragedy of the commons" effects. Using a randomized evaluation in Namibia's communal rangelands, we find that a comprehensive four-year program to...

Work requirements in means-tested transfer programs have grown in importance in the U.S. and in some other countries. The theoretical literature which considers their possible optimality generally operates within a traditional welfarist framework where some function of the utility of the poor is...

To improve public services, public sector managers must encourage reticent civil servants to enact effective reforms. We show through a randomized controlled trial that school principals, i.e., school mangers, can act as leaders to improve Instructional Management (0.3SD) and student learning...

This paper uses a discrete choice approach to estimate the impact of local fiscal and other variables on individual community choices. It employs a combination of a unique micro data set composed of ninety percent of all homeowners in six school districts in Camden County, New Jersey and...

When should a government provide a service inhouse and when should it contract out provision? We develop a model in which the provider can invest in improving the quality of service or reducing cost. If contracts are incomplete, the private provider has a stronger incentive to engage in both...

In this paper we investigate the incentives present in intergovernmental transfers for public mental health care. This represents an important issue due to the large portion of mental health care that is provided by local governments, the central role of states in financing care via...

Models of endogenous economic growth can generate long-term growth without relying on exogenous changes in technology or population. A general feature of these models is the presence of constant or increasing returns in the factors that can be accumulated. I use some models of this type to study...

Municipal unions may often use their own votes and those of sympathetic fellow citizens to promote increases in demand for municipal services. If successful, this strategy can increase member employment levels without sacrificing compensation. Municipal employee unionization significantly...

We consider public debt from a long-term historical perspective, showing how the purposes for which governments borrow have evolved over time. Periods when debt-to-GDP ratios rose explosively as a result of wars, depressions and financial crises also have a long history. Many of these episodes...