IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v45y2013icp28-37.html
   My bibliography  Save this article

Racial heterogeneity and Medicaid expenditure in the U.S. States: A longitudinal analysis

Author

Listed:
  • Lee, Soomi

Abstract

This study investigates the relationship between racial heterogeneity and Medicaid spending as a share of state public expenditures in the U.S. states from 2000 to 2010. Extant studies predict that increasing racial heterogeneity reduces the share of expenditure on “productive public goods” such as health and education spending. The relationship, however, has been inadequately examined in the previous research because (1) the use of a cross-section dataset in previous research makes it difficult to draw a causal inference, (2) previous research does not sufficiently discuss the magnitude of the effect, (3) it uses aggregate expenditure data which do not distinguish between programs that benefit targeted groups vs. the general public, and (4) previous research does not take political representation bias into consideration. My paper offers the first longitudinal analysis to examine a causal effect of racial heterogeneity on Medicaid expenditure at the U.S. state level. Using state panel data from 2000 to 2010, I find that racial heterogeneity has a negative and statistically significant effect on Medicaid's share within a state's budget. The fiscal impact is also economically significant.

Suggested Citation

  • Lee, Soomi, 2013. "Racial heterogeneity and Medicaid expenditure in the U.S. States: A longitudinal analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 28-37.
  • Handle: RePEc:eee:soceco:v:45:y:2013:i:c:p:28-37
    DOI: 10.1016/j.socec.2013.04.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1053535713000656
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Erzo F. P. Luttmer, 2001. "Group Loyalty and the Taste for Redistribution," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 500-528, June.
    2. Ruffle, Bradley J. & Sosis, Richard, 2006. "Cooperation and the in-group-out-group bias: A field test on Israeli kibbutz members and city residents," Journal of Economic Behavior & Organization, Elsevier, vol. 60(2), pages 147-163, June.
    3. repec:cup:apsrev:v:101:y:2007:i:04:p:709-725_07 is not listed on IDEAS
    4. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(4), pages 1243-1284.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Racial heterogeneity; Public good provision; Medicaid spending;

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • Z1 - Other Special Topics - - Cultural Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:45:y:2013:i:c:p:28-37. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.