The authors examine major aspects of the connection between social capital and economic development in U.S. counties. They test the conclusions of Putnam, who saw associations as a force for positive development, and Olson, who concluded the opposite. The authors find that Putnam organizations have a negative effect on income, while Olson organizations have a positive effect by decreasing levels of income inequality. Drawing on the literature distinguishing between bridging versus bonding, the authors show that bridging capital has a positive effect on development by increasing per capita income, while bonding capital has a neutral effect on both per capita income and income inequality. Finally, religious variables are tested for their relationship with economic development. Overall, congregation density has a negative influence by increasing per capita income and income inequality, controlling for geographic type. Congregations with bridging characteristics have a mixed effect on development by decreasing income and decreasing inequality.

ObjectiveThis article tests how income inequality mediates and moderates the relationship between racial diversity and social capital. We posit that racial diversity leads to higher levels of income equality, which reduces social capital. We also hypothesize that racial diversity has a stronger negative effect on social capital in places with high levels of income inequality (a compounding effect).MethodsDrawing upon data from U.S. counties, we test these models using a series of regression models.ResultsDiversity and income inequality have negative effects on social capital. There is also evidence of both mediating and moderating effects. Income inequality partially mediates the negative relationship between diversity and social capital. As income inequality increases, the negative relationship between diversity and social capital decreases. Furthermore, we find that population growth moderates these relationships.ConclusionThe relationship among social capital, income inequality, and diversity is complex. Although the direct effect is negative, there is some evidence for key mediating and moderating effects. More conceptual and empirical work is needed to assess the relationship between these concepts.

Eminent domain is an urgent problem facing local government administrators and scholars throughout the United States. However, the literature is sparse regarding how local leaders make decisions on this hot‐button issue. A 2006 Government Accountability Office report noted a lack of data about local governments’ use of their eminent domain authority. A survey of county managers in North Carolina was conducted to redress this apparent knowledge gap. Although the findings are primarily generalizable only to other Dillon’s rule states, such data demonstrate that eminent domain applies more often for “narrow” (public use) purposes, such as water and sewer systems, than for “broad” (public good) purposes, such as economic development. Current and future property considerations also influence eminent domain decisions. [A] law that takes property from A, and gives it to B: It is against all reason and justice, for a people to entrust a legislature with such powers; and, therefore, it cannot be presumed that they have done it. —Associate Justice Samuel Chase, majority opinion, Calder v. Bull (1798)

Rubin (1988) argued communities “shoot anything that flies and claim anything that falls” in their efforts to attract businesses. Such a perspective implies local governments will use large numbers of strategies as they try “everything but the kitchen sink” to promote job creation and private investment. Conversely, Stokan (2003) claims localities are more selective in how they approach economic development, which implies there should be wide variation in the number of development strategies used across jurisdictions. Based on original survey data from North Carolina cities and counties of all sizes, the findings provide support for both explanations. The data show localities vary considerably with respect to the number of strategies they employ. Notably, variation in strategy use is associated with certain community characteristics including government capacity and development network strength. However, the data also reveal that communities are, on average, utilizing a relatively high number of strategies, lending some credence to Rubin’s theory.

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