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Ideology and the size of US state government

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  • Andrew Pickering
  • James Rockey

Abstract

This paper theorizes that the impact of ideology on the size of US state governments increases with state income. This idea is tested using state-level ideology data derived from the voting behavior of state congressional representatives. Empirically the interaction of ideology and mean income is a key determinant of state government size. At 1960s levels of income the impact of ideology is negligible. At 1997 levels of income a one standard-deviation move towards the left of the ideology spectrum increases state government size by about half a standard deviation. Estimated income elasticities differentiated by state and time are found to be increasing with ideology and diminishing with income, as predicted by the theory. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Andrew Pickering & James Rockey, 2013. "Ideology and the size of US state government," Public Choice, Springer, vol. 156(3), pages 443-465, September.
    • Handle: RePEc:kap:pubcho:v:156:y:2013:i:3:p:443-465
    DOI: 10.1007/s11127-012-0026-x
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    More about this item

    Keywords

    Ideology; Wagner’s law; Size of government; D72; H10;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H10 - Public Economics - - Structure and Scope of Government - - - General

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