Improving Outcomes in Fiscal Federalism: Local Political Leadership and Administrative Capacity

Abstract

This study investigates how the political influence of local elected officials and the administrative capacities of local administrative agencies together shape outcomes in fiscal federalism. The results demonstrate that differences in support and direct involvements of local officials in federally funded energy programs influence the timeliness of implementation processes. Direct mayoral involvement in the grant application process increases the likelihood of on-time or early implementation of public projects, but direct city council involvement increases implementation time. On the other hand, general policy support from mayors and council members for these efforts, without direct involvement in program design, made on-time or early implementation of public projects more likely.