whereas in other states similar roads are financed locally. Larger governments attain scale economies. However, they also tend to be more bureaucratic and have higher operating costs, all else being equal, because of problems such as span of control. A study was done to relate highway expenditures with the share of expenditure by state governments to determine how governments should allocate ex...

T HE grant-in-aid is probably one of the most widely used and least understood activities or devices of government today. In the past 10 or 15 years, many studies have been undertaken and many volumes have been written about grants-inaid, and yet the nature of the grant, its place in our system of government, its purpose, and its effect are little understood-and are often seriously misunderstoo...