Explaining Local Government Fiscal Policy Making in the United States

Bibliographic Data

ID24229290
AuthorsAlan Digaetano (0000-0003-1319-0459, Baruch College)
Year2026
Publication date2026-10-12
Open AccessNo
TypeARTICLE
VenueUrban Affairs Review (JOURNAL)
Journal identifiersISSN: 1078-0874 • E-ISSN: 1552-8332
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/10780874261492646
OpenAlexW7221510735
LanguageEN
References cited28

Many scholars have viewed the financial crisis of 2008 as a turning point in local government fiscal policy making. In this study, this notion is examined by testing the propositions of three current theories of local government fiscal policy making—neoliberal theory's austerity urbanism, municipal pragmatism, and fiscal capacity. The study subjects the theoretical propositions of the three theoretical perspectives to empirical tests using a two-tiered strategy. The first tier draws on U.S. Census Government data to discern nationwide patterns of local government expenditure and revenue generation. The second employs Comprehensive Annual Financial Reports and Annual Comprehensive Financial Reports to correlate spending and revenues patterns for the largest U.S. cities with measures of economic performance and intergovernmental revenues. The findings suggest that the most effective explanation of local government fiscal policy in the U.S. might lie in an amalgamation of the fiscal capacity and municipal pragmatism approaches.

2008 financial crisis · American cities · austerity urbanism · Fiscal capacity · intergovernmental revenue · local fiscal policy · local government revenue · local government spending · municipal economic performance · Fiscal Policies and Political Economy · Local Government Finance and Decentralization · Urban Planning and Governance

Tools

Open DOI