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On the distribution of federal taxes and expenditures, and the new war between the states

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  • Randall Holcombe
  • Asghar Zardkoohi

Abstract

As federal government expenditures have grown, there has been an increasing awareness of the distribution of taxes and expenditures across states. States in the Northeast have claimed that sunbelt states have been getting more than their fair share of federal spending, with the sunbelt states denying the charge. A theory of political coalitions is developed to explain why the sunbelt should be unable to receive differentially high expenditures, although the sunbelt may pay less than a proportional amount in taxes because of its relatively low income. An empirical test shows that the data are in agreement with this theory. Copyright Martinus Nijhoff Publishers 1983

Suggested Citation

  • Randall Holcombe & Asghar Zardkoohi, 1983. "On the distribution of federal taxes and expenditures, and the new war between the states," Public Choice, Springer, vol. 40(2), pages 165-174, January.
  • Handle: RePEc:kap:pubcho:v:40:y:1983:i:2:p:165-174
    DOI: 10.1007/BF00118518
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    References listed on IDEAS

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    1. Thompson, Earl A & Faith, Roger L, 1981. "A Pure Theory of Strategic Behavior and Social Institutions," American Economic Review, American Economic Association, vol. 71(3), pages 366-380, June.
    2. Thomas Schwartz, 1981. "The universal-instability theorem," Public Choice, Springer, vol. 37(3), pages 487-501, January.
    3. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-664, August.
    4. Gordon Tullock, 1981. "Why so much stability," Public Choice, Springer, vol. 37(2), pages 189-204, January.
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