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Do Crime-Related Expenditures Crowd out Higher Education Expenditures?

Author

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  • Michael L. Marlow

    (California Polytechnic State University)

  • Alden F. Shiers

    (California Polytechnic State University)

Abstract

Fears about insufficient public education spending are often expressed in the area of higher education, whereby it is often argued that increases in expenditures on crime-related programs crowd out expenditures on higher education. This view suggests that higher education and crime-related programs directly compete for government expenditures so that what one program gains the other must lose as in a zero-sum game. A competing hypothesis is that higher crime-related spending leads to higher taxes or public debt issuance or to lower spending on programs other than higher education. We estimate a three-equation model of spending on crime-related programs, spending on higher education, and the crime rate from which we directly test whether spending on crime-related programs and higher education influence each other. Our empirical analysis provides weak evidence that crime-related programs have crowded out spending on higher education.

Suggested Citation

  • Michael L. Marlow & Alden F. Shiers, 2001. "Do Crime-Related Expenditures Crowd out Higher Education Expenditures?," Public Finance Review, , vol. 29(5), pages 369-393, September.
  • Handle: RePEc:sae:pubfin:v:29:y:2001:i:5:p:369-393
    DOI: 10.1177/109114210102900502
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    References listed on IDEAS

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    1. Hoenack, Stephen A. & Pierro, Daniel J., 1990. "An econometric model of a public university's income and enrollments," Journal of Economic Behavior & Organization, Elsevier, vol. 14(3), pages 403-423, December.
    2. McCarty, Therese A & Schmidt, Stephen J, 1997. "A Vector-Autoregression Analysis of State-Government Expenditure," American Economic Review, American Economic Association, vol. 87(2), pages 278-282, May.
    3. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922.
    4. Robert Toutkoushian & Paula Hollis, 1998. "Using Panel Data to Examine Legislative Demand for Higher Education," Education Economics, Taylor & Francis Journals, vol. 6(2), pages 141-157.
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    Cited by:

    1. Hazra, Devika & Aranzazu, Jose, 2022. "Crime, correction, education and welfare in the U.S. – What role does the government play?," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 474-491.
    2. Yusun Kim, 2021. "How Does a Reduction in Mandated Medicaid Spending Affect Local Fiscal Behaviors? Evidence from New York State," Public Finance Review, , vol. 49(4), pages 495-547, July.

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