What does this indicator measure?

This indicator is a measure of the number of local governments per 10,000 people  in the Syracuse, Albany, Buffalo, and Rochester Metropolitan Statistical Areas (MSA’s).  The measure is also included for the aggregate of the United States and the 100 Largest Metro Areas, and was collected in 2007.

Governance affects the region’s ability to adapt in the face of economic shocks, and both vertical and horizontal relationships matter.  Further, the number of local governments in a metropolitan area relates to greater levels of segregation, which adversely affects economic outcomes and prosperity.  A proliferation of local governments is expected to make governing regionally more difficult.  However it should be emphasized that research shows it is the quality of governance that matters most for development and prosperity, not its fragmentation and not conventional cost of doing business measures based on tax rates, for example. –explanation courtesy of the Brookings Institute