Urban local government finance in Nigeria: The case of Lagos municipal area

One of the most important results of the global reform of local governments in Nigeria in 1976 was to initiate a progressive increase in the amount of monetary transfers to local governments (LGs) by federal and state governments (especially the former). The proportion of federally collected revenues devoted to LGs increased rapidly from less than 2 per cent in 1976 to 15 per cent in 1990. This has enabled Nigerian LGs to play a more visible role in total public expenditures. On the other hand, huge federal transfers have led to sharp declines in absolute and relative terms in locally generated revenues. The two Lagos municipalities are able to generate up to 50 per cent of their total revenues. In contrast, the average for all local governments in the country is 4–5 per cent. The relatively large internal revenue sources in the two Lagos municipalities results in generous surpluses, which they are able to channel into capital development or special project expenditures. The single most important internal revenue source is the property tax, which is not even collected in some other large cities, such as Kano, Ogbomosho and Sokoto.     

Effect of the Political System on Local Financial Condition: Empirical Evidence for Spain's Largest Municipalities

The significant relationship between public spending and political system has led to a considerable increase in the studies being carried out to analyze how the latter affects public spending, debt, and fiscal pressures. Given the effect that municipal finance has on the quantity and quality of the public services that future generations will enjoy, the aim of this study is to analyze the effect that political ideology and strength have on local government management overall through analysis of the financial condition. With this goal in mind, the study applied panel data methods that allow unobservable heterogeneity to be controlled to a sample of 153 of Spain's largest municipalities for the 1988–2008 period. The results show that the municipalities governed by progressive political parties are worse off financially than those governed by conservatives. Likewise, strong citizen support guarantees greater budgetary solvency.     

Disparities in the Spending Needs of Highland Municipalities

A certain rough consensus holds that highland municipalities have higher spending needs than others, because of the particularly adverse conditions in which they provide essential public services. However, there is no empirical evidence to support this assertion. This study examines whether any relevant differences actually exist in the spending policies of highland and lowland municipalities. To this end, we make logarithmic estimations of per capita municipal spending in order to determine whether the indicators selected, which are based on local government powers, adequately reflect spending needs. Our results point to the special circumstances of highland districts as a key explanatory factor for higher municipal spending, along with demographic factors, locational population patterns, economic activity, subsidies, and local fiscal capacity.     

Do More Options Always Benefit the Users of Public Services? An Experimental Study of School Choice,Performance, and Satisfaction

Recent years have seen an increase in choice of provider in many public services, including education. Proponents of provider choice suggest that it increases users' satisfaction. However, insights from the psychology of choice overload suggest that too much choice can be detrimental. The authors use a survey experiment to investigate the effect of provider choice on parents' satisfaction with schools (under performance declines and increases). The findings show that choice increases satisfaction and perceptions of fairness of the process compared with no choice. However, consistent with choice overload, increasing the number of options does not boost satisfaction. The findings have important implications for satisfaction as a measure of performance, because user satisfaction seems not to be independent of choice processes. This suggests lessons for designing delivery systems: although facilitating minimal user choice is preferable to having no choice, further increasing delivery options may not increase users' satisfaction.     

Public Debt,Economic Growth,and Public Sector Management in Developing Countries: Is There a Link?

The article investigates whether differences in public sector management quality affect the link between public debt and economic growth in developing countries. For this purpose, we primarily use the World Bank's institutional indices of public sector management (PSM). Using PSM thresholds, we split our panel into country clusters and make comparisons. Our linear baseline regressions reveal a significant negative relationship between public debt and growth. The various robustness exercises that we perform also confirm these results. When we dissect our data set into “weak” and “strong” county clusters using public sector management scores, however, we find different results. While public debt still displayed a negative relationship with growth in countries with “weak” public sector management quality, it generally displayed a positive relationship in the latter group. The tests for non‐linearity shows evidence of an “inverse‐U”‐shape relationship between public debt and economic growth. However, we fail to see a similar significant relationship on country clusters that account for PSM quality. Yet, countries with well‐managed public sectors demonstrate a higher public debt sustainability threshold. Copyright © 2015 John Wiley & Sons, Ltd.     

Innovation Agents in the Public Sector: Applying Champion and Promotor Theory to Explore Innovation in the Australian Public Service

Innovation is critical to organisational success and is a process steered, and potentially thwarted, by individuals. However, despite the importance of public sector innovation given the complexity of policy issues faced and the sector's specific contextual features, our understanding of innovation processes in government requires expansion. This study, using in‐depth case analyses of three Australian Public Service agencies, focuses on understanding the ‘human component’ of the innovation process by drawing on both innovation champion and promotor theories to explore, through the lens of organisational power, how multiple human agents progress public sector innovations. The results highlight the key, and often tandem, roles of individuals at multiple organisational levels who work to inspire and motivate others to progress an innovation (champions) and those with specific power bases who help overcome organisational barriers to innovation (promotors).     

Public Pensions and Collective Bargaining Rights: Evidence from State and Local Governments

An aging workforce and increasing retirement benefits are ongoing problems for states and municipalities. Unions are often blamed for governments offering too generous pension benefits. This contributes to budgetary pressures in some state and municipal governments. This article analyzes the impact of collective bargaining on pension benefit generosity under different economic conditions. The study finds that the impact of collective bargaining on pension benefits is not consistent over time or across pension plans. Collective bargaining has a positive effect on pension benefits under worsening economic conditions. Additionally, unions indirectly influence pension benefit generosity through campaign donations and unionization intensity. The findings suggest mixed impacts of collective bargaining on different groups of public employees regarding pension contributions. The article concludes with implications for the role of unions in public financial performance and strategic human resource management during fiscal austerity.     

Public employees and public sector reform implementation

Conventional wisdom says that reforms that aim at improving the productivity of the public sector face opposition from public sector employees, and for this reason, tend to be poorly implemented. These claims are not backed by much hard evidence. This paper seeks to fill some of that gap by investigating why an educational reform containing explicit accountability elements is poorly implemented across Norwegian municipalities about four years after the reform has passed the parliament. The empirical analyses provide evidence that municipalities with a large share of public employees are less likely to implement the reform. The relationship seems to be causal. A reduced-form approach is applied, which prevents conclusions about the mechanisms through which the public employees exercise their influence. However, some preliminary analyses indicate that school leaders hold more negative attitudes towards the reform in municipalities with a large share of public employees, potentially indicating that regulatory capture is an issue: school leaders tend to sympathize more strongly with teachers in such environments.     

Legal enclaves as a test environment for innovative products: Toward legally resilient experimentation policies1

Many countries adhere to the Organisation for Economic Co-operation and Development creed that innovation is good for the economy. Experiments are often used to intentionally create space for innovation. Decisions allowing experiments result in temporary legal enclaves for a few, excluding many others. Therefore, they come with risks. The aim of this article is to provide a set of guidelines that help improve the legal resilience of experimentation policies, so they are better able to withstand legal attacks when they occur. To do so, we first arranged the existing diversity of legal experiments in a theoretical model. Special attention was paid to two archetypes of legal experiments: statutory experiments and regulatory sandboxes. Second, we analyzed the impact of both types of experiments on four core legal principles: legality, certainty, equality, and public accountability. From this assessment, we eventually formulated a set of guidelines to secure or improve legal resilience.     

Policy Expansion in Local Government Environmental Policy Making

Relatively little is known about when, why, and how some jurisdictions “double down” on policy priorities, rapidly adopting multiple measures tackling the same issue. Rapid policy expansion can emerge in fast‐evolving, uncertain, and contested policy arenas in which pressures for policy making are not satisfied, and even may be strengthened, by initial policy innovation. This article analyzes local government policy making on high‐volume hydraulic fracturing by New York State municipalities from 2008 to 2012. Policy path dependence, peer influence, and policy design appear to play a critical role in determining whether public officials respond to these pressures with policy expansion. Initial policy innovations can open windows for policy participants to secure additional measures that strengthen or enlarge the scope of action. Public officials and stakeholders seeking particular policy outcomes should take a long view of the policy process while simultaneously remaining alert for opportunities afforded by pressurized policy dilemmas.     

Public employment and income redistribution: causal?evidence for Brazilian municipalities

This paper examines the relationship between public employment and income redistribution in Brazilian municipalities. First, we use the requirements set forth by the Fiscal Responsibility Act as an instrument for public employment variation across municipalities. Second, our results suggest that local public employment increases income concentration instead of fostering redistribution. This result puts into perspective the model provided in Alesina et al. (J. Urban Econ. 48:219?C241, 2000) where public employment can be used as device for redistributing income in the United States. This seems to be an outcome of the current public employment structure and not an explicit public policy.     

Is a problem shared a problem halved? Shared services and municipal efficiency

It has long been argued that shared services represent an efficacious means of securing efficiencies for municipalities. Indeed, pressures from fiscal austerity, taxation limitations, and the specter of forced amalgamations have resulted in an increasing uptake of shared service arrangements. However, the extant evidence is rather inconclusive and is largely restricted to analyzing the nett efficiency outcomes for the specific service shared. We broaden this evidential base by examining the association between shared service production and the efficiency of entire municipalities. Our analysis, employing a 5‐year panel of data, suggests that shared services are associated with a statistically significant reduction in overall municipal efficiency. We conclude by explicating on the public policy implications arising from our prima facie surprising results.     

NEW DIRECTIONS IN EMPLOYMENT AND TRAINING POLICY: A FEDERAL PERSPECTIVE

The U.S. Department of Labor's "Work Force 2000" project has identified long-term trends that will affect future employment and training policy. These include demographic trends such as a decline in the pool of young labor market entrants and an increase in women, minority, and immigrant workers; the continued shift from goods-producing industries to the service sector; and continued technological innovation in response to increased international competition. These projected changes in the labor market and workplace present a national challenge and an opportunity to tackle the longstanding problems of disadvantaged workers. Cooperative public and private programs to eliminate illiteracy and increase job skills and competencies, ease labor mobility and provide retraining, and attack underlying social problems that support the cycle of welfare dependency and unemployment are needed to provide the workforce America needs for the future.     

Segregation and Inequality in Public Goods

Many U.S. cities function without regular problems. They have well‐kept roads, sewers that never overflow, and public parks with swing sets and restrooms. Others struggle to maintain balanced budgets, fail to adequately equip or staff their police forces, and offer little assistance to residents of limited means. What explains these differences? I argue that segregation along racial lines contributes to public goods inequalities. Racially segregated cities are also politically polarized cities, making collective investment more challenging and public goods expenditures lower. I provide evidence for this argument using election data from 25 large cities and demographic data matched to city finances in more than 2,600 places. To handle the problem of endogeneity, I instrument for segregation using the number of waterways in a city. I find that segregated municipalities are more politically polarized and spend less on a wide range of public goods.     

Federal tax reform and the financing of state and local governments

Although the Reagan Administration tax reform proposals would reduce federal income tax liabilities for most taxpayers, federal tax reform would also create strong pressures on state and local governments to cut taxes and public services. These pressures would arise primarily because itemizers would no longer be able to deduct state and local taxes in determining their federal income tax liabilities. In New York City and Boston, it is likely that the Administration's tax reform would induce cuts in spending that range from 2.5 to 7.5 percent. While the elimination of state and local tax deductibility may promote allocative efficiency in the provision of local public goods, the cost would be a decline in the degree of redistribution through the state and local public sector, and a reduction in local public services for the poor.     

Civil Service Reforms in Italy: The Importance of External Endorsement and Administrative Leadership

The traditional portrait of civil servants in Italy, as well as in most other countries, has always been one of not particularly efficient employees yet have the benefit of a secure job and can look forward to a comfortable retirement package. In order to change this image, public management reforms have largely focused on civil servants since the 1990s. However, many academics and practitioners claim some inertia in the reform implementation. In this article we aim to identify the determinants of such inertia in Italy's civil service reforms and we analyze data from 885 Italian municipalities expected to adopt the pay system reform for senior officials, as required by national legislature. Our findings stress the importance of accrued legitimacy, external public endorsement, and the influence of key internal stakeholders (like administrative leaders) as major vehicles to promote or slow down the implementation of administrative reforms in the public sector.     

Intergovernmental Innovation and the Administrative State in Canada

Canadian federalism has experienced considerable pressure for change and innovation in recent years. There have been calls for more collaborative federalism and demands for public sector reforms consistent with the precepts of New Public Management. This article examines the hypothesis that these pressures might be expected to have resulted in some intergovernmental institutional innovation in the arena of federal–provincial–territorial relations. Using a conceptual distinction between federalism, intergovernmental relations, and intergovernmental management (IGM) as the basis of analyzing institutional innovation at six levels in the Canadian intergovernmental administrative state, the authors find a differentiated impact with more institutional innovation evident at the micro levels of IGM and innovation more constrained at the macro levels of the administrative state by the traditional institutional infrastructure of executive federalism.     

Electoral Institutions and Electoral Cycles in Investment Incentives: A Field Experiment on Over 3,000 U.S. Municipalities*

Through a field experiment and audit study, we test how the electoral calendar affects the use of local economic development policies. We explore how electoral timing along with local political institutions and party composition affect local governments’ offers of investment incentives to outside firms. We legally incorporated a consultancy and, on behalf of a real investor in manufacturing, approached roughly 3,000 U.S. municipalities with inquiries. The main experimental results show no greater tendency to offer incentives for investment anticipated prior to than after elections—a null result that is estimated with high precision. Limiting the sample to municipalities that specialize in manufacturing, the relevant subgroup, suggests that election timing matters in this most likely set of locales. Some observational findings include additional evidence on how direct elections of executives and partisanship correlate with incentive offers.     

Safeguarding the Future of Democracy

Abstract

The tenets of democracy appear to be facing a crisis in modern western societies, as trust in public figures and institutions—including politicians and government—declines and distrust of them increases. This decline is particularly visible in the cynical attitudes and non-voting behaviour of British young people. This paper presents a more contemporary conceptualisation of trust and distrust, from which four segments of young voters and non-voters emerge. A mix of calculative, predictive and identification trust-building strategies are applied to these four segments to reinforce their trust and reduce their distrust, thereby reconnecting them with parliamentary politics. This paper concludes with an agenda for further research.     

Public sector innovation in the Asia-pacific trends,challenges, and opportunities

Public organizations face a multitude of challenges that force them to innovate existing processes, policies, programs, and products. Indeed, in recent years, innovation has become a core topic of study in public administration. However, the vast majority of the public sector innovation literature stems from the United States and Western Europe. The lack of Asia-Pacific studies is particularly striking given that countries like Australia, China, Japan, New Zealand, South Korea, Singapore, and Taiwan consistently rank high on public sector innovation. This special issue brings together state of the art empirical research on public sector innovation in the Asia-Pacific region that examines a range of drivers and outcomes of innovation, including studies comparing Asia-Pacific countries and countries in the East and the West. The findings show that public sector employees in the studied countries all seek opportunities to innovate, whereas cultural norms and values either constrain or enable innovative behaviour and affect the extent to which employees experience leadership support for displaying such behaviour.