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The Allocation Of Federal Funds To Promote Bureaucratic Objectives: An Empirical Test

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  • Shirley Svorny
  • Leah Marcal

Abstract

This article tests whether Job Training Partnership Act Title III discretionary funds are allocated to meet bureaucratic objectives. These funds are targeted to provide a rapid response to mass layoffs or natural disasters and are therefore well suited for detecting political influence because program distributions are awarded contemporaneously and eligibility is difficult to anticipate. After controlling for worker displacements and disaster declarations, discretionary outlays are higher in states with close congressional races, politically active constituents, and powerful congressional representatives. There is additional evidence of politics in the reduction of aggregate outlays during presidential election years.

Suggested Citation

  • Shirley Svorny & Leah Marcal, 2002. "The Allocation Of Federal Funds To Promote Bureaucratic Objectives: An Empirical Test," Contemporary Economic Policy, Western Economic Association International, vol. 20(3), pages 209-220, July.
    • Handle: RePEc:bla:coecpo:v:20:y:2002:i:3:p:209-220
    DOI: 10.1093/cep/20.3.209
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    References listed on IDEAS

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    1. Levitt, Steven D & Poterba, James M, 1999. "Congressional Distributive Politics and State Economic Performance," Public Choice, Springer, vol. 99(1-2), pages 185-216, April.
    2. Stein, Robert M., 1981. "The Allocation of Federal Aid Monies: The Synthesis of Demand-Side and Supply-Side Explanations," American Political Science Review, Cambridge University Press, vol. 75(2), pages 334-343, June.
    3. Rich, Michael J., 1989. "Distributive Politics and the Allocation of Federal Grants," American Political Science Review, Cambridge University Press, vol. 83(1), pages 193-213, March.
    4. G. S. Maddala, 1987. "Limited Dependent Variable Models Using Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 307-338.
    5. Wright, Gavin, 1974. "The Political Economy of New Deal Spending: An Econometric Analysis," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 30-38, February.
    6. Lisa Kiel & Richard McKenzie, 1983. "The impact of tenure on the flow of federal benefits to SMSA's," Public Choice, Springer, vol. 41(2), pages 285-293, January.
    7. Svorny, Shirley V, 1996. "Congressional Allocation of Federal Funds: The Job Training Partnership Act of 1982," Public Choice, Springer, vol. 87(3-4), pages 229-242, June.
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    Cited by:

    1. Robert Krol, 2014. "Forecast Bias of Government Agencies," Cato Journal, Cato Journal, Cato Institute, vol. 34(1), pages 99-112, Winter.
    2. Thomas M. Rabovsky & William Curtis Ellis, 2014. "Higher Education and Congressional Influence on Administrative Decisions: An Examination of NSF and NIH Research Grant Funding to Four-Year Universities," Social Science Quarterly, Southwestern Social Science Association, vol. 95(3), pages 740-759, September.

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