In fiscal year 1981-82, state and local government spending actually
exceeded federal nondefense spending. However, past research in public
finance has focused on federal spending and policies and paid little
attention to the economic problems of state and local governments.
Studies in State and Local Public Finance goes far in correcting this
omission.
Developed from a National Bureau of Economic Research conference on
state and local financing, the volume includes papers summarizing and
extending recent research as well as commentaries. Covering a wide range
of topics, the papers share an empirical orientation and a concern with
policy issues. The first two papers look at the role of tax-exempt bonds
in local public finance. Their findings suggest that tax policies
significantly affect municipal borrowing practices and that financial
advantage can be achieved under certain of these practices. Other papers
address specific issues related to state and local tax policy: the
impact of local taxes on location decisions; efficient road-use charges
for trucks; and the relation of income and general sales tax systems
over time. Examining issues related to United States federalism, the
last paper focuses on the impact of federal grant aid to states.
The research and findings these papers report make an important
contribution to the study of local public finance and should be of
particular interest to policymakers and those involved in private and
public financing at the local, state, or federal level.
