I have written three papers on this topic.
- Matthew E. Kahn, 2017. "Is Local Public Sector Rent Extraction Higher in Progressive Cities or High Amenity Cities?,"NBER Working Papers 23201, National Bureau of Economic Research, Inc.
Jerch, Rhiannon & Kahn, Matthew E. & Li, Shanjun, 2017. "The efficiency of local government: The role of privatization and public sector unions," Journal of Public Economics, Elsevier, vol. 154(C), pages 95-121.
Li, Shanjun & Kahn, Matthew E. & Nickelsburg, Jerry, 2015. "Public transit bus procurement: The role of energy prices, regulation and federal subsidies," Journal of Urban Economics, Elsevier, vol. 87(C), pages 57-71.
If the public sector could be more cost efficient in providing government services, would more Republicans vote in favor of higher taxes?
When Republicans oppose government spending, how much of this is due to rejecting the government's priorities (and implicit redistribution) versus how much of this opposition is caused by believing that government is inefficient at supply a given quality level of services (such as schooling, transportation, health care).
If public sector unions had less power, how much would the government cost of services decline by? Our JPUBE paper argues that the decline in costs would be very large.