Postprint version. Published in Applied Economics, Volume 27, Issue 7, July 1, 1995, pages 596-573.
NOTE: At the time of publication, the author Michael L. Marlow was not yet affiliated with Cal Poly.
Growth in special district governments is examined as a reason behind public sector expansion in the United States. A theoretical model is developed of the optimal mix of government suppliers which predicts how special district governments affect the overall provision of government policies. The hypothesis that expansion of special district governments leads to expansion of the public sector is expirically examined over two time periods.