This paper explores the factors that contribute to long-run economic growth in U.S. metropolitan areas, with particular attention given to government finance variables. Unlike previous work that examines only a sub-sample of the largest areas, this paper uses a new comprehensive data set for all...

Oates' (1972) decentralization theorem holds that local governments will do a superior job at providing the efficient quantity of public goods. Brennan and Buchanan (1980) suggest that "the potential for fiscal exploitation varies inversely with the number of competing governmental units in the...