Municipalities play a central role in Sweden, both within the welfare state and when it comes to the development of local enterprise. In this project we analyze municipal institutions with tools both from political science and economics. Examples of questions we examine: What can municipalities do to improve local development? To what extent is there a problem with local corruption in Sweden, and how can it be counteracted? How can the increased number of municipal enterprises be explained, and what are the pros and cons of this organizational form?