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Privatization of state government services is commonplace, but our understanding of its effects is limited by data availability. We study the relationship between American state government contracting and public sector wages. Governments have used public sector employment to support a variety of goals, including social equity and economic development, but privatization, as a new public management (NPM) reform, may shift the focus. Our empirical analysis shows that state privatization of service delivery is associated with decreases in the public sector wage premium, but that these effects are not driven by gender, race, or low‐levels of educational attainment. The fidelity of the implementation to NPM values conditions these effects. We also find that contracting service delivery is associated with a lower public sector wage premium for middle‐class workers. [ABSTRACT FROM AUTHOR]

There is high interest in economic development efforts involving cooperation or collaboration among metropolitan jurisdictions. To determine why some local governments engage in cooperative agreements while others do not, this paper investigates transaction obstacles, including bargaining, information, agency, enforcement, and division problems. The authors then advance an institutional collective action explanation for intergovernmental cooperation, focusing on the conditions under which these transactions costs are low. This work anticipates that the costs associated with interlocal cooperation are influenced by the demographic characteristics of communities, local political institutions, and the nature of regional government networks. Empirical analysis based on a national survey of local development officials provides support for several predictions from this model and identifies policy variables that, in turn, increase the prospects for cooperation, specifically through the development of informal policy networks. [ABSTRACT FROM AUTHOR]

This paper explores the political implications of the use of public enterprises at the municipal level, using survey data from Illinois cities. The dependent variables include the number of enterprises cities have, the dependence of cities on income from enterprises, and the choice of which enterprises to provide. The paper explores why some cities have enterprises to handle parking, garbage, and economic development. Conclusions are that cities experiencing fiscal stress avoid enterprises, and more-reformed cities use enterprises more frequently. Particular enterprises have their own political and financial characteristics and are more likely to be used by cities with matching political characteristics. The paper concludes with suggestions for future research. [ABSTRACT FROM AUTHOR]

Recent studies of state assumption of the CDBG-Small Cities program have been limited by two factors. First, they have been single-state case studies or confined to a small number of states. Second, they have adopted a narrow context for examining the likely impacts of community development following state assumption. This paper attempts to expand policy information based upon earlier work by studying a larger cross-section of states and considering the issues of redistribution and decentralization from a broader context. We find some significant policy changes from previous HUD program management but suggest that such may be due to the CDBG economic development amendment and an increase in multipurpose projects in the states. Unlike Morgan and England's (1984) recent article in PAR, we suggest that decentralization may not necessarily lead to decreasing redistributive community development policies in the states. Rather, redistribution may be incorporated within the enlarging proportion of multipurpose projects. [ABSTRACT FROM AUTHOR]

The article presents a commentary on an article by Derick W. Brinkerhoff, published elsewhere in the issue, titled "The State and International Development Management: Shifting Tides, Changing Boundaries, and Future Directions." It presents a practitioner's perspective on theoretical points raised by Brinkerhoff regarding the field of development management. Issues addressed include increasing the involvement of aid workers with fragile states and the policies of the United States Agency for International Development.

Globalization stimulates local governments in China and the United States to step up their economic development efforts. What strategies are successful and why? Does industry cluster development lead to higher per capita income? What government infrastructure and incentives stimulate and nurture businesses? This article examines local economic development in China and the United States, comparing strategies and outlining challenging issues. Kuotsai Tom Liou of the University of Central Florida finds that local governments must play the leading role in sustainable development, as a partnership approach promotes collaboration among communities, industries, and other government entities. Policy implications and theoretical issues aimed to promote further comparative studies are presented. [ABSTRACT FROM AUTHOR]

The stability of the Chinese economy during the recent world economic crisis has attracted global attention. This essay examines the role of state-owned enterprises in China’s continued successful economic expansion. By comparing these enterprises’ performance with contemporary regulatory policies governing their American counterparts, the author, Yunhua Liu of Nanyang Technological University, finds that China’s strategy trumps that of the United States and concludes that in a transitional, developing economy, the existence of state-owned enterprises offers an adaptive, efficacious strategy. [ABSTRACT FROM AUTHOR]

An ample academic literature discusses airports’ utility as economic development anchors for metropolitan areas, yet very little is known about the administrative apparatus of these important local government enterprises. To better understand airport structure and management in the United States, directors of primary airports were surveyed. Based on this national survey, the administrative structure and position of airports with regard to local government—i.e., special district or functional department—were examined to determine the place these entities occupy on the local government management landscape, as well as the implications of retaining airport authorities in studies of special-purpose governments. This essay concludes that airport authorities do not follow the conventional form and function of special-purpose governments. Consequently, analyses of special-purpose governments should exclude airport authorities because these nonconforming entities may cloud rather than clarify our true understanding of special-purpose governments. [ABSTRACT FROM AUTHOR]

A government's budget represents a statement of its priorities. During the past 25 years, the international community has recognized that gender equality is essential for sustainable economic growth and full social development, and it has called upon nations to use their budgets to promote genderequitable resource allocation and revenue generation. More than 60 countries have answered this call by implementing gender-responsive budgets at the national and subnational levels. However, gender-responsive budgeting is virtually unheard of among public finance scholars and U.S. public administration scholars and practitioners. Here we define gender-responsive budgeting, discuss the need for it, describe the lessons learned, and discuss its potential as a budget reform. We hope our commentary will bring gender-responsive budgeting into the mainstream of research in the U.S. public administration community and into the practice of government budgeting. [ABSTRACT FROM AUTHOR]

This article presents an analysis of link of state employment and training and economic development programs in the United States. Effectiveness of state economic development programs is contingent on successful coordination of traditional physical capital and human capital improvement activities. The major stimulant to better linkages has been the growing perception that the movement of physical capital is heavily influenced by the skills and educational levels of the potential workforce. The article focuses on examination of the degree to which states have attempted to link physical and human capital development programs and to explore the correlates of these state efforts. The study explores the political, socioeconomic, and programmatic correlates of state organizational efforts. The results show that states which have forged the closest linkages are those which are confronted by declining economies despite extensive state fiscal incentives in support of the private sector and in which governors have fewer constraints on their powers to impose organizational changes.

Economic development initiatives have become common in recent years as stales and localities have sought to attract jobs and economic activity. Despite the popularity of industrial location incentives among state and local policy makers, it is not clear that current policies are either efficient or effective. Acknowledging that states and localities are not likely to cease offering economic development incentives, an alternative approach is presented here. By first determining how they fare in terms of uncontrollable business costs (transportation, energy, and labor costs), stales and localities can better focus their use of industrial location incentives. [ABSTRACT FROM AUTHOR]

State and local governments are increasingly engaged in efforts to create jobs and stimulate economic activity. While these economic development policies have a momentum of their own, many depend on federal tax, spending, and regulatory policies. State and local officials view some past and potential future federal policies as threats to their development efforts. In turn, federal officials view some state and local economic development activities as counterproductive. Some oppose issuance of tax-exempt bonds and other efforts which they think threaten the internal United States free market. Debates over federal tax reform and the federal deficit provide considerable room for continuing federal/state/local conflicts. In the long run, incentives for cooperation are stronger than those for conflict, and cooperative forces should prevail. State and local officials need federal cooperation to pursue many development objectives. Particularly important are federal research activities that can be linked to state and local efforts to expand technology transfer capabilities of state and local governments. [ABSTRACT FROM AUTHOR]