Do Small States Get More Federal Monies?Myth and Reality About the US SenateMalapportionment
AbstractWe analyze the relationship between senate malapportionment and the allocation ofthe US federal budget to the states during the period 1978-2002. A substantialliterature originating from the influential paper by ?) finds that small andoverrepresented states get significantly larger shares of federal funds. We show thatthese studies suffer from fundamental identification problems and grosslyoverestimate the impact of malapportionment. Most of the estimated impact is not ascale but a change effect. Rather than evidence of "small state advantage", we findthat states with fast growing population are penalized in the allocation of the federalbudget independently of whether they are large or small.
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Bibliographic InfoPaper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Economic Organisation and Public Policy Discussion Papers Series with number 007.
Date of creation: Apr 2009
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federal budget; malapportionment; small state advantage; overrepresentation;
Other versions of this item:
- Valentino Larcinese & Leonzio Rizzo & Cecilia Testa, 2009. "Do small states get more federal monies?: myth and reality about the US Senate malapportionment," LSE Research Online Documents on Economics 25493, London School of Economics and Political Science, LSE Library.
- Valentino Larcinese & Leonzio Rizzo & Cecilia Testa, 2007. "Do Small States Get More Federal Monies? Myth and Reality about the US Senate Malapportionment," Royal Holloway, University of London: Discussion Papers in Economics 07/01, Department of Economics, Royal Holloway University of London, revised May 2007.
- Larcinese, Valentino & Rizzo, Leonzio & Testa, Cecilia, 2007. "Do Small States Get More Federal Monies? Myth and Reality about the US Senate Malapportionment," MPRA Paper 5339, University Library of Munich, Germany.
- Cecilia Testa, 2009. "Do Small States Get More Federal Monies? Myth and Reality About the US Senate Malapportionment," Royal Holloway, University of London: Discussion Papers in Economics 09/04, Department of Economics, Royal Holloway University of London.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-19 (All new papers)
- NEP-CDM-2009-09-19 (Collective Decision-Making)
- NEP-POL-2009-09-19 (Positive Political Economics)
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