Publication

This paper uses econometric models of public investment to investigate the institutional and political determinants of central vs local government decision-making. The author finds that local government policy decisions are progressive both economically and in terms of need. By contrast, centralized investment is regressive in both dimensions. The results suggest a healthy picture of local democracy in which voters are able to influence local government through both their civil institutions and the electoral mechanism. Where local government works well citizens have voice, providing an effective counterweight to the power of private firms and government’s own politico-bureaucratic interests.