IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v56y1988i2p121-130.html
   My bibliography  Save this article

State government purchases in a federalist economy

Author

Listed:
  • Steven Craig
  • Joel Sailors

Abstract

This paper empirically examines the impact of state government purchasing preference laws on expenditures and revenue of individual states. Purchasing preferences allow firms located within a state to win state contracts without being the low bidder. We find that states with purchasing preference laws spend 3% more in real terms per capita than other states. Evidence is found indicating that the preferences require revenue increases to fund them (the tax base does not rise sufficiently), and that there is some apparent taxpayer resistance to these preferences. This evidence is consistent with a coalition model of state government behavior because it indicates there is significant redistribution of income between groups within the state. Copyright Martinus Nijhoff Publishers 1988

Suggested Citation

  • Steven Craig & Joel Sailors, 1988. "State government purchases in a federalist economy," Public Choice, Springer, vol. 56(2), pages 121-130, February.
    • Handle: RePEc:kap:pubcho:v:56:y:1988:i:2:p:121-130
    DOI: 10.1007/BF00115752
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF00115752
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF00115752?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gordon Tullock, 1969. "Federalism: Problems of scale," Public Choice, Springer, vol. 6(1), pages 19-29, March.
    2. Maloney, Michael T & McCormick, Robert E & Tollison, Robert D, 1984. "Economic Regulation, Competitive Governments, and Specialized Resources," Journal of Law and Economics, University of Chicago Press, vol. 27(2), pages 329-338, October.
    3. Hamilton, Bruce W., 1983. "The flypaper effect and other anomalies," Journal of Public Economics, Elsevier, vol. 22(3), pages 347-361, December.
    4. Benham, Lee & Benham, Alexandra, 1975. "Regulating Through the Professions: A Perspective on Information Control," Journal of Law and Economics, University of Chicago Press, vol. 18(2), pages 421-447, October.
    5. Walker, Jack L., 1969. "The Diffusion of Innovations among the American States," American Political Science Review, Cambridge University Press, vol. 63(3), pages 880-899, September.
    6. Easterbrook, Frank H, 1983. "Antitrust and the Economics of Federalism," Journal of Law and Economics, University of Chicago Press, vol. 26(1), pages 23-50, April.
    7. Rose-Ackerman, Susan, 1981. "Does Federalism Matter? Political Choice in a Federal Republic," Journal of Political Economy, University of Chicago Press, vol. 89(1), pages 152-165, February.
    8. Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, vol. 59(2), pages 479-487, May.
    9. Mark S. Massel, 1962. "Competition and Monopoly," Challenge, Taylor & Francis Journals, vol. 11(1), pages 33-34, October.
    10. Shepard, Lawrence, 1978. "Licensing Restrictions and the Cost of Dental Care," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 187-201, April.
    11. Walker, Jack L., 1969. "The Diffusion of Innovations among the American States," American Political Science Review, Cambridge University Press, vol. 63(3), pages 880-899, September.
    12. Craig, Steven G & Inman, Robert P, 1982. "Federal Aid and Public Education: An Empirical Look at the New Fiscal Federalism," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 541-552, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Douglas Noonan, 2007. "Fiscal pressures, institutional context, and constituents: a dynamic model of states’ arts agency appropriations," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(4), pages 293-310, December.
    2. Stephen P. Ferris & Jan Hanousek & Reza Houston, 2022. "Contractor default: Predictions, politics, and penalties in the procurement process," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(4), pages 1001-1039, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amy Y. Li, 2017. "Covet Thy Neighbor or “Reverse Policy Diffusion”? State Adoption of Performance Funding 2.0," Research in Higher Education, Springer;Association for Institutional Research, vol. 58(7), pages 746-771, November.
    2. Melle Marco C., 2014. "Eine europäische Bemessungsgrundlage für die Körperschaftsteuer? Konzeption und ordnungsökonomische Analyse / Conceptual design and constitutional economics analysis of a European tax base for corpora," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 65(1), pages 133-156, January.
    3. Felix Strebel & Thomas Widmer, 2012. "Visibility and facticity in policy diffusion: going beyond the prevailing binarity," Policy Sciences, Springer;Society of Policy Sciences, vol. 45(4), pages 385-398, December.
    4. Xiaohan Li & Yang Lv & Md Nazirul Islam Sarker & Xun Zeng, 2022. "Assessment of Critical Diffusion Factors of Public–Private Partnership and Social Policy: Evidence from Mainland Prefecture-Level Cities in China," Land, MDPI, vol. 11(3), pages 1-15, February.
    5. Christoph Engel & Alon Klement & Karen Weinshall Margel, 2017. "Diffusion of Legal Innovations: The Case of Israeli Class Actions," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2017_11, Max Planck Institute for Research on Collective Goods, revised Jan 2018.
    6. Weixing Liu & Hongtao Yi, 2020. "What Affects the Diffusion of New Energy Vehicles Financial Subsidy Policy? Evidence from Chinese Cities," IJERPH, MDPI, vol. 17(3), pages 1-15, January.
    7. Stoian, Adrian & Fishback, Price, 2010. "Welfare spending and mortality rates for the elderly before the Social Security era," Explorations in Economic History, Elsevier, vol. 47(1), pages 1-27, January.
    8. Mary A. Weiss & Sharon Tennyson & Laureen Regan, 2010. "The Effects of Regulated Premium Subsidies on Insurance Costs: An Empirical Analysis of Automobile Insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 77(3), pages 597-624, September.
    9. Tim Legrand & Diane Stone, 2021. "Governing global policy: what IPE can learn from public policy? [Review article: What is policy convergence and what causes it?]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 40(4), pages 484-501.
    10. Saatvika Rai, 2020. "Policy Adoption and Policy Intensity: Emergence of Climate Adaptation Planning in U.S. States," Review of Policy Research, Policy Studies Organization, vol. 37(4), pages 444-463, July.
    11. Steven Craig & Robert P. Inman, 1986. "Education, Welfare and the "New" Federalism: State Budgeting in a Federalist Public Economy," NBER Chapters, in: Studies in State and Local Public Finance, pages 187-228, National Bureau of Economic Research, Inc.
    12. Thomas Holyoke & Jeffrey Henig & Heath Brown & Natalie Lacireno-Paquet, 2009. "Policy dynamics and the evolution of state charter school laws," Policy Sciences, Springer;Society of Policy Sciences, vol. 42(1), pages 33-55, February.
    13. Vlad Tarko, 2021. "Local Accountability and National Coordination in Fiscal Federalism, by Charles Hankla, Jorge Martinez-Vazquez, and Raul Alberto Ponce Rodriguez," Publius: The Journal of Federalism, CSF Associates Inc., vol. 51(2), pages 16-16.
    14. Jean-Robert Tyran & Rupert Sausgruber, 2005. "The diffusion of policy innovations -an experimental investigation," Journal of Evolutionary Economics, Springer, vol. 15(4), pages 423-442, October.
    15. Rauch Griffard, Megan & Sadler, James & Little, Michael & Cohen-Vogel, Lora, 2022. "Governing early learning among the American states," Children and Youth Services Review, Elsevier, vol. 143(C).
    16. Nadiya Kostyuk, 2024. "Allies and diffusion of state military cybercapacity," Journal of Peace Research, Peace Research Institute Oslo, vol. 61(1), pages 44-58, January.
    17. Bernecker, Andreas, 2016. "Divided we reform? Evidence from US welfare policies," Journal of Public Economics, Elsevier, vol. 142(C), pages 24-38.
    18. Daniel S. Feinberg, 2021. "What factors predict the quality of hazard mitigation plans in Washington State?," Climatic Change, Springer, vol. 164(1), pages 1-29, January.
    19. Youlang Zhang & Hongshan Yang, 2023. "Bureaucratic politics, innovation compatibility, and the dynamic diffusion of subnational decentralization reforms in China," Review of Policy Research, Policy Studies Organization, vol. 40(4), pages 553-572, July.
    20. Douglas Holtz-Eakin & Whitney K. Newey & Harvey S. Rosen, 1989. "Implementing Causality Tests with Panel Data, with an Example from LocalPublic Finance," NBER Technical Working Papers 0048, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:56:y:1988:i:2:p:121-130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.