Community Associations: Decentralizing Local Government Privately

Robert Nelson (2008)

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The system of local government in the United States in being transformed by the rise of the private community association. Local government in the pubic sector is increasingly limited to large county and municipal governments--also sometimes large special districts--that assume responsibilities of a regional and metropolitan scope. The regulation of land to protect neighborhood environmental quality, and the delivery of small-scale services, is increasingly the responsibility of a private government. Previous studies have described these new patterns of governance, but little literatuer is available to understand the full reasons for such changes. This chapter offers several hypotheses relating to the magnitude of transaction costs under alternative forms of land tenure.