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Do small states get more federal monies?: myth and reality about the US Senate malapportionment

Larcinese, Valentino, Rizzo, Leonzio and Testa, Cecilia (2009) Do small states get more federal monies?: myth and reality about the US Senate malapportionment. Economic Organisation and Public Policy Discussion Papers, EOPP/2009/7. Suntory Centre, London School of Economics and Political Science, London, UK.

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Abstract

We analyze the relationship between senate malapportionment and the allocation of the US federal budget to the states during the period 1978-2002. A substantial literature originating from the influential paper by ?) finds that small and overrepresented states get significantly larger shares of federal funds. We show that these studies suffer from fundamental identification problems and grossly overestimate the impact of malapportionment. Most of the estimated impact is not a scale but a change effect. Rather than evidence of ”small state advantage", we find that states with fast growing population are penalized in the allocation of the federal budget independently of whether they are large or small.

Item Type: Monograph (Discussion Paper)
Official URL: http://sticerd.lse.ac.uk/eopp/_new/publications/se...
Additional Information: © 2009 the authors
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
J Political Science > JK Political institutions (United States)
Journal of Economic Literature Classification System: H - Public Economics > H6 - National Budget, Deficit, and Debt > H61 - Budget; Budget Systems
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legislatures, and Voting Behavior
H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H77 - Intergovernmental Relations; Federalism; Secession
Sets: Departments > Government
Collections > Economists Online
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: EOPP/2009/7
Date Deposited: 13 Oct 2009 16:07
URL: http://eprints.lse.ac.uk/25493/

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