Abstract
Following the political market framework, this panel analysis examines the effects of democratic institutions on government size in Florida’s 67 counties from 1998 to 2007. Regarding group demand, the study suggests that unemployment rate reduces county government expenditures and revenues. Regarding elites’ preferences, Democratic elites’ preferences reduce expenditures and revenues. With regard to mass support, citizen income has a positive influence on expenditures and revenues. On the other hand, Democratic ideology reduces both expenditures and revenues. Finally, we found that county government structure influences expenditures and revenues significantly, but home rule does not.
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