Local government spending shapes economic growth and human development worldwide.
The article "A Pure Theory of Local Expenditures" by Charles M. Tiebout explores how local governments spend money. The researcher looks at how money is used in different areas and what impact it has on the community. The study found that how money is spent locally can affect things like economic growth and human development. This suggests that where local governments choose to invest their funds can have a significant impact on the well-being of the people living in that area.