Governments, Cities, and Suburbs

I was going to chime in on Bryan Caplan's post on whether government policies have encouraged or discouraged more suburbanization when I noticed a commenter had already stated all of my counterpoints. Two additional obvious points regarding federal policies are the home mortgage tax deduction (encourages more house consumption) and the Interstate Highway System (encourages more driving and decentralization).

One thing missing that I'd like to see is the geographic distribution of government funding. My assumption is that cities get the lion's share of research grants (via universities) and transportation dollars (via public transit authorities), but remember that they also represent the lion's share of population, jobs, and economic activity. Can anyone point me to a fair, reasoned exposition of where the money goes, to see if cities are underfunded or overfunded compared to suburbs?
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