The power of the purse: what do the data say on US federal budget allocation to the states?"
This paper provides new evidence on the relevance of alternative theories of federal budget allocation to US States. Using a panel of 48 states over 20 years, we estimate the size and relative importance of different institutional and political factors in determining such allocation. We find that although socio-economic characteristics are very important explanatory variables of spending allocation, some states receive disproportionate amounts of money for reasons essentially linked to politics and the budget allocation process. In particular we find that the overrepresentation of small states determined by the Senate and Presidential election systems has an important impact on federal budget allocation. States whose governor has the same political affiliation of the President receive more federal funds in the form of procurement and defense spending. On the other hand, the political alignment between governor and majority in the House and/or Senate does not affect the allocation of federal funds. We do not find any evidence that marginal states receive more funding; on the opposite we find that safe states tend to be rewarded. Finally, the appropriation committee membership affects the distribution of broad spending categories like total expenditure per capita and direct payments to individuals, while senior members have a disproportionate impact on grant allocation
|Date of creation:||11 Aug 2004|
|Contact details of provider:|| Phone: 1 212 998 3820|
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wright, Gavin, 1974. "The Political Economy of New Deal Spending: An Econometric Analysis," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 30-38, February.
- Alvarez, R Michael & Saving, Jason L, 1997.
"Congressional Committees and the Political Economy of Federal Outlays,"
Springer, vol. 92(1-2), pages 55-73, July.
- Alvarez, Michael R. & Saving, Jason, 1995. "Congressional Committees and the Political Economy of Federal Outlays," Working Papers 898, California Institute of Technology, Division of the Humanities and Social Sciences.
- Timothy Besley & Anne Case, 1995. "Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 769-798.
- Timothy Besley & Anne Case, 1993. "Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits," NBER Working Papers 4575, National Bureau of Economic Research, Inc.
- Torsten Persson & Guido Tabellini, 2004. "Constitutional Rules and Fiscal Policy Outcomes," American Economic Review, American Economic Association, vol. 94(1), pages 25-45, March.
- Dahlberg, Matz & Johansson, Eva, 1999. "On the Vote Purchasing Behavior of Incumbent Governments," Working Paper Series 1999:24, Uppsala University, Department of Economics.
- Dahlberg, M. & Johansson, E., 1999. "On the Vote Purchasing Behavior of Incumbent Governments," Papers 1999:24, Uppsala - Working Paper Series.
- Alberto Alesina & Guido Tabellini, 1990. "A Positive Theory of Fiscal Deficits and Government Debt," Review of Economic Studies, Oxford University Press, vol. 57(3), pages 403-414.
- Tabellini, Guido & Alesina, Alberto, 1990. "A Positive Theory of Fiscal Deficits and Government Debt," Scholarly Articles 3612769, Harvard University Department of Economics.
- Torsten Persson & Gérard Roland & Guido Tabellini, 1997. "Separation of Powers and Political Accountability," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1163-1202.
When requesting a correction, please mention this item's handle: RePEc:ecm:latm04:151. 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: (Christopher F. Baum)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.