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An Investigation Of Differences In Agricultural Expenditure By State Government

Author

Listed:
  • Ospina, Enrique
  • Gunderson, Ralph O.

Abstract

Agriculture department programs in 43 states surveyed offer similar services in regulation, market promotion, and natural resource conservation but are organized differently. Two OLS equations were estimated to explain state agriculture department expenditures as a function of gross farm sales, farm receipts mix, degree of government centralization, the proportion of metropolitan area residents, and tax capacity. A positive relation was found between state agricultural spending and gross farm sales and the percent of fruit/vegetables farm receipts. However, the results cast doubt over the Leviathan thesis of increasing government spending resulting from bureaucratic power.

Suggested Citation

  • Ospina, Enrique & Gunderson, Ralph O., 1990. "An Investigation Of Differences In Agricultural Expenditure By State Government," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-9, December.
    • Handle: RePEc:ags:wjagec:32058
    DOI: 10.22004/ag.econ.32058
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    References listed on IDEAS

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    1. Oates, Wallace E, 1985. "Searching for Leviathan: An Empirical Study," American Economic Review, American Economic Association, vol. 75(4), pages 748-757, September.
    2. Zax, Jeffrey S, 1989. "Is There a Leviathan in Your Neighborhood?," American Economic Review, American Economic Association, vol. 79(3), pages 560-567, June.
    3. Runge, C. Ford, 1987. "State Level Agricultural Policy In Minnesota: Adjusting To Change In The 1980'S," Staff Papers 13424, University of Minnesota, Department of Applied Economics.
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