Provides empirical evidence of the relationship between the structure of the local public goods market and the relative size of the local public sector. Market structure is measured with respect to both the degree of fragmentation and an index of concentration.

Wagner's hypothesis of an expanding public sector as an economy develops is tested using pooled time-series cross-sectional data for U.S. states from 1964 to 1986. Comparing government size among fiscal jurisdictions within a single nation reduces the problems of data comparability and of...

An examination of the relationship between the number of local governments within local labor markets and their expenditures, finding empirical support in both suburbs and central cities for the connection between the structure of the local public service market and its performance.