Does the distribution of New Deal spending reflect an optimal provision of public goods?
Since 1969 more than a dozen studies have explored the grossly unequal state-level distribution of New Deal spending. Why did small population rural states such as Nevada, Montana, and Wyoming receive up to six times as many federal dollars per capita as densely populated states such as Connecticut, Rhode Island, and New York? Empirical studies employing economic and political variables have had mixed results in explaining this distribution. What past studies neglect is that a large proportion of New Deal dollars went towards the creation of public goods, which had spillover effects particularly upon those who lived in close proximity to these projects. This note suggests that the state-level distribution of per capita expenditures during the 1930s is consistent with what would be expected to follow from an economically efficient allocation of public goods.
Volume (Year): 8 (2007)
Issue (Month): 3 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Alan Aschauer, 2000.
"Do states optimize? Public capital and economic growth,"
The Annals of Regional Science,
Springer;Western Regional Science Association, vol. 34(3), pages 343-363.
- David Alan Aschauer, 1997. "Do States Optimize? Public Capital and Economic Growth," Macroeconomics 9711007, EconWPA.
- David Alan Aschauer, 1997. "Do States Optimize?: Public Capital and Economic Growth," Economics Working Paper Archive wp_189, Levy Economics Institute.
- 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.
- Wallis, John Joseph, 1984. "The Birth of the Old Federalism: Financing the New Deal, 1932–1940," The Journal of Economic History, Cambridge University Press, vol. 44(01), pages 139-159, March.
- Fishback, Price V. & Kantor, Shawn & Wallis, John Joseph, 2003.
"Can the New Deal's three Rs be rehabilitated? A program-by-program, county-by-county analysis,"
Explorations in Economic History,
Elsevier, vol. 40(3), pages 278-307, July.
- Price V. Fishback & Shawn Kantor & John Joseph Wallis, 2002. "Can the New Deal's Three R's Be Rehabilitated? A Program-by-Program, County-by-County Analysis," NBER Working Papers 8903, National Bureau of Economic Research, Inc.
- Barro, R.J., 1989.
"Economic Growth In A Cross Section Of Countries,"
RCER Working Papers
201, University of Rochester - Center for Economic Research (RCER).
- Wallis, John Joseph, 1987. "Employment, Politics, and Economic Recovery during the Great Depression," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 516-520, August.
- Alicia H. Munnell & Leah M. Cook, 1990.
"How does public infrastructure affect regional economic performance?,"
New England Economic Review,
Federal Reserve Bank of Boston, issue Sep, pages 11-33.
- Alicia H. Munnell, 1990. "How does public infrastructure affect regional economic performance?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 34, pages 69-112.
- Atlas, Cary M, et al, 1995. "Slicing the Federal Government Net Spending Pie: Who Wins, Who Loses, and Why," American Economic Review, American Economic Association, vol. 85(3), pages 624-629, June.
- Robert K. Fleck, 1999. "Electoral Incentives, Public Policy, and the New Deal Realignment," Southern Economic Journal, Southern Economic Association, vol. 65(3), pages 377-404, January.
- Fleck, Robert K., 2001. "Population, Land, Economic Conditions, and the Allocation of New Deal Spending," Explorations in Economic History, Elsevier, vol. 38(2), pages 296-304, April.
- Anderson, Gary M & Tollison, Robert D, 1991. "Congressional Influence and Patterns of New Deal Spending, 1933-1939," Journal of Law and Economics, University of Chicago Press, vol. 34(1), pages 161-175, April.
- Reading, Don C., 1973. "New Deal Activity and the States, 1933 to 1939," The Journal of Economic History, Cambridge University Press, vol. 33(04), pages 792-810, December.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-07h40002. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.