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On the Political Economy of State Highway Expenditures: Some Evidence of the Relative Performance of Alternative Public Choice Models

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  • Congleton, Roger D
  • Bennett, Randall W

Abstract

This paper explores the extent to which the public demand for roads and/or power of special interest groups determines road expenditures at the state level using an extension of the methodology developed in Congleton and Shughart (1990). Reduced form models of median voter demand, special interest group equilibria, and a combined model are estimated using cross-sectional state data from the United States. We generally find support for the hypothesis that voting matters. The pure median voter models have a better fit than the pure special interest group models. Moreover, in our combined model, we find that variables from the median-voter model can not be dropped without significantly reducing the combined model's fit. Copyright 1995 by Kluwer Academic Publishers

Suggested Citation

  • Congleton, Roger D & Bennett, Randall W, 1995. "On the Political Economy of State Highway Expenditures: Some Evidence of the Relative Performance of Alternative Public Choice Models," Public Choice, Springer, vol. 84(1-2), pages 1-24, July.
  • Handle: RePEc:kap:pubcho:v:84:y:1995:i:1-2:p:1-24
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    References listed on IDEAS

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    1. Torsten Persson & Guido Tabellini, 2004. "Constitutions and Economic Policy," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 75-98, Winter.
    2. Rogowski, Ronald, 1987. "Trade and the variety of democratic institutions," International Organization, Cambridge University Press, vol. 41(02), pages 203-223, March.
    3. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    4. Torsten Persson & Guido Tabellini, 2004. "Constitutional Rules and Fiscal Policy Outcomes," American Economic Review, American Economic Association, vol. 94(1), pages 25-45, March.
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    Citations

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    Cited by:

    1. Constantino Cronemberger Mendes & Maria da Conceição Sampaio de Sousa, 2004. "Demand For Locally Provided Public Services Within The Median Voter'S Framework: The Case Of The Brazilian Municipalities," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 027, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. José Manuel Cruz, 2004. "Empirical analysis of the influence of voters and politicians in the public choice of Portuguese municipalities universidade portucalense," ERSA conference papers ersa04p367, European Regional Science Association.
    3. Phuong Nguyen-Hoang, 2015. "Volatile earmarked revenues and state highway expenditures in the United States," Transportation, Springer, vol. 42(2), pages 237-256, March.
    4. Karl Widerquist, 2000. "The Public Commodities Problem," Macroeconomics 0004046, EconWPA.
    5. repec:gam:jsusta:v:9:y:2017:i:8:p:1347-:d:106591 is not listed on IDEAS
    6. R. K. Goel & M. A. Nelson, 2003. "Use or abuse of highway tax revenues? An economic analysis of highway spending," Applied Economics Letters, Taylor & Francis Journals, vol. 10(13), pages 813-819.
    7. Constantino Cronemberger Mendes & Maria da Conceição Sampaio de Sousa, 2015. "Demand for Locally Provided Public Services within the Median Voter's Framework: the Case of the Brazilian Municipalities," Discussion Papers 0134, Instituto de Pesquisa Econômica Aplicada - IPEA.
    8. Baskaran, Thushyanthan & Hessami, Zohal, 2010. "Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis," MPRA Paper 25750, University Library of Munich, Germany.
    9. Frank Goetzke & William Hankins & Gary A. Hoover, 2017. "Partisan Determinants of Federal Highway Grants," CESifo Working Paper Series 6603, CESifo Group Munich.
    10. Sriparna Ghosh & Joshua C. Hall, 2015. "The Political Economy of Soda Taxation," Working Papers 15-50, Department of Economics, West Virginia University.
    11. Brunet, Alexia & McNamara, Kevin T. & Deboer, Larry, 2001. "Alternative Service Delivery Strategies For Local Governments," 2001 Annual meeting, August 5-8, Chicago, IL 20705, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Dashle Kelley, 2014. "The political economy of unfunded public pension liabilities," Public Choice, Springer, vol. 158(1), pages 21-38, January.
    13. Joshua Hall & Shree Baba Pokharel, 2017. "Does the Median Voter or Special Interests Determine State Highway Expenditures? Recent Evidence," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(1), pages 59-69, March.
    14. Benoît Le Maux, 2009. "Governmental behavior in representative democracy: a synthesis of the theoretical literature," Public Choice, Springer, vol. 141(3), pages 447-465, December.
    15. repec:kap:itaxpf:v:24:y:2017:i:3:d:10.1007_s10797-016-9424-1 is not listed on IDEAS
    16. Joshua C. Hall & Serkan Karadas, 2017. "Tuition Increases Geaux Away? Evidence from Voting on Louisiana’s Amendment 2," Working Papers 17-29, Department of Economics, West Virginia University.
    17. Constantino Cronemberger Mendes & Maria da Conceição Sampaio de Sousa, 2004. "Demand for Locally provided Public Services Within the Median Voter`s Framework: The Case of the Brazilian Municipalities," Discussion Papers 1046, Instituto de Pesquisa Econômica Aplicada - IPEA.
    18. Benoît Le Maux, 2009. "Governmental behavior in representative democracy: a synthesis of the theoretical literature," Post-Print halshs-00418370, HAL.
    19. Cruz, Jose Manuel, 2002. "Who is fitting better to Portuguese local demand for public choice: Central government or municipal governments?," ERSA conference papers ersa02p440, European Regional Science Association.
    20. José Cruz, 2001. "An empirical application of the median voter model and of the interest group influence model to the Portuguese and Galician municipalities," ERSA conference papers ersa01p25, European Regional Science Association.
    21. Ismael Sanz & Francisco J. Velázquez, 2003. "Fiscal illusion, fiscal consolidation and government expenditure composition in the OECD: a dynamic panel data approach," European Economy Group Working Papers 21, European Economy Group.

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