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Is Local Government Spending Converging?

Author

Listed:
  • Mark Skidmore

    (Department of Agricultural Economics, Department of Economics, Michigan State University, 202 Agriculture Hall, East Lansing, MI 48824-1039, USA.)

  • Steven Deller

    (Department of Agricultural and Applied Economics, College of Agricultural and Life Sciences, University of Wisconsin-Madison Extension, Madison, WI 53706, USA)

Abstract

A substantial body of theoretical and empirical evidence demonstrates that interregional competition for factors of production leads to convergence of per capita output. Is there an analogous process that leads to convergence of public sector activity? Skidmore et al. develop a model that is consistent with the macroeconomic growth literature, which predicts convergence in government spending. Using this framework, we test for convergence in government spending using detailed data from Wisconsin for a variety of municipal government expenditure categories over the period 1990–2000. Our empirical investigation provides compelling evidence of convergence in per capita government spending for all the expenditure categories we study. Eastern Economic Journal (2008) 34, 41–55. doi:10.1057/palgrave.eej.9050019

Suggested Citation

  • Mark Skidmore & Steven Deller, 2008. "Is Local Government Spending Converging?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 34(1), pages 41-55, Winter.
    • Handle: RePEc:pal:easeco:v:34:y:2008:i:1:p:41-55
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    Citations

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    Cited by:

    1. Tessa Conroy & Steven Deller & Alexandra Tsvetkova, 2017. "Interstate Relocation Of Manufacturers And Business Climate," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 29(1), pages 18-45, March.
    2. Saeid Mahdavi & Joakim Westerlund, 2017. "Are state–local government expenditures converging? New evidence based on sequential unit root tests," Empirical Economics, Springer, vol. 53(2), pages 373-403, September.
    3. Ignacio Tavares De Araujo Junior & Alessio Tony De Cavalcanti De Almeida, 2016. "Government Spending On Early Childhood In Brazil: Equity And Efficiency Challenges," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 066, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    4. Muhammad Safdar & Ahmad Nawaz, 2020. "Testing The Convergence Hypothesis In Solow Growth Model: A Statistical Evidence From Saarc Economies," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(2), pages 60-73, June.
    5. Ramesh Chandra Das & Enrico Ivaldi, 2020. "Growth and Convergence of Social Sectors’ Expenditure in Indian States: Upshots from Neoclassical Growth and Panel Unit Roots Models," Journal of Infrastructure Development, India Development Foundation, vol. 12(1), pages 69-83, June.
    6. Sandhya Garg, 2015. "Spatial convergence in public expenditure across Indian states: Implication of federal transfers," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2015-028, Indira Gandhi Institute of Development Research, Mumbai, India.

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