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Bureaucracy, Infrastructure, and Economic Growth: Evidence from U.S. Cities During the Progressive Era
Open accessAbstract
Recent work in the sociology of economic development has emphasized the establishment of a professional bureaucracy in place of political appointees as an important component of the institutional environment in which private enterprise can flourish. I hypothesize that establishment of such a bureaucracy will lengthen the period that public decision makers are willing to wait to realize the benefits of expenditures, leading to allocation of a greater proportion of government resources to long-gestation period projects such as infrastructure. This hypothesis can be tested using data generated by a `natural experiment' in the early part of this century, when a wave of municipal reform transformed the governments of many U.S. cities. Controlling for city and time effects, adoption of Civil Service is found to increase the share of total municipal expenditure allocated to road and sewer investment. Other estimates imply that this increased share raises the growth rate of city manufacturing employment by one-half percent per year.
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Metadata
- Authors
- Rauch, J.
- Affiliations
- National Bureau of Economic Research (US)
- Corresponding author
- Rauch, James
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 1994-12
- Volume
- 85
- Issue
- 4
- Pages
- 968-979
- OpenAlex
- W1493660409
- Cited by
- 212
- References
- 9
- Citations by year
- 2025: 2 · 2024: 5 · 2023: 5 · 2022: 6 · 2021: 6 · 2020: 8 · 2019: 6 · 2018: 7 · 2017: 6 · 2016: 11 · 2015: 7 · 2014: 8 · 2013: 38 · 2012: 17
- Type
- report
- Language
- en
- Open access
- green
- doi.org
- Locations
- National Bureau of Economic Research (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- American Economic Review (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Fiscal Policy and Economic Growth
- Social Sciences › Political Science and International Relations › Local Government Finance and Decentralization
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Agglomeration and Urban Systems
- Keywords
- civil service, professional bureaucracy, municipal reform, Progressive Era, urban infrastructure, road infrastructure investment, municipal expenditures, economic growth, manufacturing employment, institutional environment, natural experiment
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