TY - RPRT AU - Hammond, George W. AU - Tosun, Mehmet S. TI - The Impact of Local Decentralization on Economic Growth: Evidence from U.S. Counties PY - 2009/Nov/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 4574 UR - https://www.iza.org/publications/dp4574 AB - We analyze the impact of fiscal decentralization on U.S. county population, employment, and real income growth. Our findings suggest that government organization matters for local economic growth, but that the impacts vary by government unit and by economic indicator. We find that single-purpose governments per square mile have a positive impact on metropolitan population and employment growth, but no significant impact on nonmetropolitan counties. In contrast, the fragmentation of general-purpose governments per capita has a negative impact on employment and population growth in nonmetropolitan counties. Our results suggest that local government decentralization matters differently for metropolitan and nonmetropolitan counties. KW - employment KW - population KW - nonmetropolitan KW - metropolitan KW - fiscal decentralization KW - income KW - spatial econometrics ER -