Purpose – This paper seeks to investigate the role of income-inequality on the size of local government. Design/methodology/approach – First, the paper extends the model proposed by Meltzer and Richard, allowing for spatial interaction in the redistributive in-kind transfers from the local...

Purpose – This paper seeks to investigate the role of income‐inequality on the size of local government. Design/methodology/approach – First, the paper extends the model proposed by Meltzer and Richard, allowing for spatial interaction in the redistributive in‐kind transfers from the...