A Computer Simulation Model of Municipal Budgeting

Published Online:https://doi.org/10.1287/mnsc.13.11.786

An increasing awareness of the importance of urban governmental activities draws attention to municipal expenditures and to the municipal operating budget. Little effort has been directed toward the question of how municipalities allocate resources. The work reported here represents an attempt to develop a positive theory of municipal resource allocation for large metropolitan communities and to subject this theory to empirical tests. Cleveland, Detroit, and Pittsburgh are used as data points.

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