TY - JOUR AU - Coate,Stephen AU - Knight,Brian TI - Government Form and Public Spending: Theory and Evidence from U.S. Municipalities JF - National Bureau of Economic Research Working Paper Series VL - No. 14857 PY - 2009 Y2 - April 2009 UR - http://www.nber.org/papers/w14857 L1 - http://www.nber.org/papers/w14857.pdf N1 - Author contact info: Stephen Coate Department of Economics Cornell University Uris Hall Ithaca, NY 14853-7601 Tel: 607/255-1912 Fax: 215/573-2057 E-Mail: sc163@cornell.edu Brian G. Knight Brown University Department of Economics, Box B 64 Waterman Street Providence, RI 02912 Tel: 401/863-1584 Fax: 401/863-1970 E-Mail: Brian_Knight@brown.edu AB - There are two main forms of government in U.S. cities: council-manager and mayor-council. This paper develops a theory of fiscal policy determination under these two forms. The theory predicts that expected public spending will be lower under mayor-council, but that either form of government could be favored by a majority of citizens. The latter prediction means that the theory is consistent with the co-existence of both government forms. Support for the former prediction is found in both a cross-sectional analysis and a panel analysis of changes in government form. ER -