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"Beggar Thy Neighbor": Testing for Free Riding in State-Level Endangered Species Expenditures

  • List, John A
  • Bulte, Erwin H
  • Shogren, Jason F

An important public policy question that remains unresolved is whether devolution will enhance sensible policy making by exploiting informational asymmetries or, instead, trigger a "beggar thy neighbor" response and stimulate free riding amongst localities. We analyze this question within the framework of U.S. environmental policymaking by scrutinizing a unique panel data set on state-level endangered species expenditure patterns. Our empirical estimates are consistent with the notion that states free ride, which may lead to an expenditure equilibrium that is not Pareto efficient. Copyright 2002 by Kluwer Academic Publishers

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Article provided by Springer in its journal Public Choice.

Volume (Year): 111 (2002)
Issue (Month): 3-4 (June)
Pages: 303-15

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Handle: RePEc:kap:pubcho:v:111:y:2002:i:3-4:p:303-15
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100332

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  1. Martin L. Weitzman, 1998. "The Noah's Ark Problem," Econometrica, Econometric Society, vol. 66(6), pages 1279-1298, November.
  2. Weitzman, M.L., 1991. "On Diversity," Harvard Institute of Economic Research Working Papers 1553, Harvard - Institute of Economic Research.
  3. Martin L. Weitzman, 1993. "What to Preserve? An Application of Diversity Theory to Crane Conservation," The Quarterly Journal of Economics, Oxford University Press, vol. 108(1), pages 157-183.
  4. John A. List, 2001. "Do Explicit Warnings Eliminate the Hypothetical Bias in Elicitation Procedures? Evidence from Field Auctions for Sportscards," American Economic Review, American Economic Association, vol. 91(5), pages 1498-1507, December.
  5. Gardner M. Brown & Jason F. Shogren, 1998. "Economics of the Endangered Species Act," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 3-20, Summer.
  6. Merrifield, John, 2000. "State Government Expenditure Determinants and Tax Revenue Determinants Revisited," Public Choice, Springer, vol. 102(1-2), pages 25-50, January.
  7. Andrew Metrick & Martin L. Weitzman, 1998. "Conflicts and Choices in Biodiversity Preservation," Harvard Institute of Economic Research Working Papers 1836, Harvard - Institute of Economic Research.
  8. Andrew Metrick & Martin L. Weitzman, 1996. "Patterns of Behavior in Endangered Species Preservation," Land Economics, University of Wisconsin Press, vol. 72(1), pages 1-16.
  9. Boadway, Robin & Horiba, Isao & Jha, Raghbendra, 1999. "The Provision of Public Services by Government Funded Decentralized Agencies," Public Choice, Springer, vol. 100(3-4), pages 157-84, September.
  10. Wallace E. Oates, 1991. "Studies In Fiscal Federalism," Books, Edward Elgar Publishing, number 342.
  11. Weitzman, M.L., 1992. "Diversity Functions," Harvard Institute of Economic Research Working Papers 1610, Harvard - Institute of Economic Research.
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