Who Benefits From Managerial Effectiveness?

• In Event: Political Leadership

Abstract

Do the managerial practices of local leaders matter for cities and their residents? Since the Progressive Era, reformers and scholars alike have theorized that efficient management can make city government operate more smoothly and cost-effectively. But is a more corporate approach to management associated with different city policy priorities? If so, who benefits? To answer these questions, we design and conduct an original phone survey on the management practices of nearly 300 mayors and city managers across the U.S. Using a difference-in-differences design, we examine how expenditure patterns change when cities elect or appoint leaders with different managerial approaches. We find that when local leaders employ management practices associated with corporate success, their cities reduce funding for redistributive programs and modestly increase spending on developmental policies. These results are consistent with classic work in urban economics pointing to an efficiency-equity trade-off that can exist for local officials as they balance the pursuit of economic growth against providing for the needs of less advantaged residents.

Authors

• Maria Carreri, University of California, San Diego

• Julia Payson, New York University