Recent empirical literature finds that greater economic freedom at the state level tends to have a positive effect on entrepreneurial activity and economic growth generally. However, state boundaries are relatively arbitrary, and the level of economic freedom in local economies can vary widely...

In the cross-country literature, cognitive skills are robust predictors of economic growth. We investigate claims by psychologists that the same is true at the state level. In a variety of specifications using four proxies for average state IQ used in the psychology literature, little evidence...

This paper explores the factors that contribute to long-run economic growth in U.S. metropolitan areas, with particular attention given to government finance variables. Unlike previous work that examines only a sub-sample of the largest areas, this paper uses a new comprehensive data set for all...

Oates' (1972) decentralization theorem holds that local governments will do a superior job at providing the efficient quantity of public goods. Brennan and Buchanan (1980) suggest that "the potential for fiscal exploitation varies inversely with the number of competing governmental units in the...

This article provides the first examination of the relationship between public expenditures and labor productivity that focuses on municipalities, rather than states or nations. We use data for 1880-1920, a period of rapid industrialization in which there were both high levels of public...

This paper is the first attempt to produce an economic freedom index for local economies in the U.S. It provides a more comprehensive measure of the restrictions government places upon economic freedom compared to simple fiscal measures like total government spending or revenue. That makes it a...